Public and private Kentucky schools are among beneficiaries of a settlement in electricity and gas rate hike cases involving Louisville Gas & Electric and Kentucky Utilities, the Kentucky School Boards Association News Service reported Friday.
The school boards association, representing the interests of school districts served by the two utilities, was among those intervening in the rate cases. Ron Willhite, director of a KSBA program that provides training to school energy managers, said the orders by the state Public Service Commission will mean a smaller rate increase for schools.
“This is an excellent result for schools,” Willhite said. “LG&E-served public schools will see their electric costs rise by approximately $1.1 million less than originally requested by LG&E, and KU-served public schools should realize an estimated $1.5 million less of an increase than initially sought. Natural gas costs for LG&E-served schools will increase by 2 percent rather than LGE’s requested 4.2 percent.”
Additionally, as a result of the settlement, public and private schools could participate in a $1.5 million pilot program that provides lower rates to schools that participate in energy-efficiency measures, Kentucky Utilities officials said.
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Fayette County public schools are mostly served by Kentucky Utilities.
PSC officials said the settlement increases both monthly residential customer charges and the rate for each unit of electricity consumed for both LG&E and KU customers.
A KU residential customer using an average of 1,179 kilowatt hours per month will see an increase of $3.85 per month under the settlement, KU officials said.
The settlement was announced Thursday. The new rates go into effect July 1.