LOUISVILLE, Ky. — LG&E customers are likely to see increases in their monthly bills heading into winter.
The electric company received approval from the Kentucky Service Commission for a quarterly natural gas cost adjustment. Officials said it’s a result of supply and demand.
That increase will affect natural gas customers only. For LG&E customers who use about 6,000 cubic feet of natural gas monthly, the average homeowner’s bill could increase about 33% -- an estimated increase of $22.18.
“That is really a direct impact of any increase or savings. This is directly passed on through customers and since we are seeing an increase right now that’s why the adjustment is the way it is,” LG&E spokeswoman Natasha Collins said.
Price increases are also affecting our trips to the grocery store, the gas pump, and our other utility bills.
Dr. Jose Fernandez, Associate Professor, and Chair of the Economics Department at the University of Louisville said there are several factors at play including a slowdown in production and reductions in the national inventory.
“Some of that is supply driven and the fact that we don’t have enough workers, but there is a small increase in inflation,” he said.
The US industry is also dealing with lower natural gas production following the damage from Hurricane Ida in late August.
According to the Energy Information Administration, the level of gas in US storage is 16.8% below the level compared to this time last year.
The factors are playing a role in the increase which Collins recognized could be difficult for customers. However, LG&E has also said they have resources for customers who may have hard time with their bills.
The rate adjustments are expected to be in place from Nov. 1, 2021 through Jan. 31, 2022.