KU, new owner reach rate settlement

Customers of Kentucky Utilities and Louisville Gas and Electric Co. wouldn't see an increase in their base rates before January 2013 under a tentative settlement covering the companies' acquisition by a by Pennsylvania-based PPL Corp. The last rate increase was last month.

The settlement with the Kentucky attorney general's office, the city of Lexington, major industrial users and others still must be approved by the state Public Service Commission. A decision is expected by the end of the month.

In the settlement, PPL Corp. also agrees to keep commitments to community support and low-income programs.

The acquisition was announced in May.

In addition to the PSC, the settlement must be approved by the Tennessee Regulatory Authority, the Virginia State Corporation Commission and the Federal Energy Regulatory Commission. It was approved last month by the Federal Trade Commission and the Justice Department.