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Press Release

LG&E Receives Approval to Pass Along Lower Wholesale Natural Gas Costs to Customers
Quarterly Adjustment Represents 4.19 Percent Decrease Year-Over-Year; Effective Through April 30

2.6.2012


LOUISVILLE, Ky. — Louisville Gas and Electric Company has received approval from the Kentucky Public Service Commission to pass along wholesale natural gas costs that are lower when compared to same period one year ago and the previous quarter.

Effective through April 30, a typical residential customer with an average usage of 6,000 cubic feet per month will pay about $56.09 monthly. That compares to about $58.54 per month during the same period one year ago – a decrease of 4.2 percent.

Compared to the previous quarter – Nov. 1, 2011 through Jan. 31, 2012 – the approved filing represents a decrease of approximately 3.6 percent, or $2.09 per month. The table below shows the same comparison:


Compared to the same period one year ago:

Quarter Typical Monthly Bill % Decrease $ Decrease
Feb. 1 – April 30, 2011 $58.54    
Feb. 1 – April 30, 2012 $56.09 4.2% $2.45


Compared to the previous quarter:

Quarter Typical Monthly Bill % Decrease $ Decrease
Nov. 1 – Jan. 31, 2012 $58.18    
Feb. 1 – April 30, 2012 $56.09 3.6% $2.09


At the national level, newly developed natural gas supplies have come on line in the last two to three years. With the development of additional gas supplies, natural gas prices took a steep decline from 2009 to 2010. Since that time, natural gas prices have been at some of the lowest levels in about a decade.

Along with these abundant gas supplies, the demand for natural gas has been tempered by a warmer than normal winter with the result that there is an abundance of gas in storage across the nation. For instance, in the Louisville area, temperatures on average have been about 18 percent warmer than normal for November through January, and 28 percent warmer than November through January of last year. Together, lower demand and abundant supplies have contributed to reduced wholesale natural gas costs which are being passed along to customers.

Like other natural gas utilities across the nation, LG&E does not profit from the cost of the natural gas it distributes to its customers. LG&E's gas supply costs are collected from customers on a dollar-for-dollar basis following review and approval by the Kentucky Public Service Commission.

If natural gas supply costs increase, so can monthly natural gas bills. Likewise, if costs decrease, as is the case with the current situation, customers receive the benefit from decreased wholesale costs.

LG&E works to keep its natural gas costs as low as possible, and uses underground storage reserves to better manage price volatility and deliver reliable supplies to its customers.

Since colder weather can increase customers’ natural gas consumption and increase total monthly bills, LG&E encourages customers to still use energy wisely by making their homes more energy efficient.

Some traditional low to no-cost steps to reduce overall energy use and save money include:
  • Perform an online home energy analysis to better pinpoint how your home uses energy and where potential savings exist. Simply register your LG&E or KU account at my.lge-ku.com, then click on "Online Home Energy Analysis." After keying in some basic information about your home, you'll receive a 19-page report with energy-saving recommendations based on your home and your actual energy use.
  • Request an on-site home energy analysis and for $25 a trained energy specialist will examine your home and use specialized equipment to help identify air leaks and other areas where you could improve your home’s energy efficiency. After the audit, you'll receive energy-saving products such as compact fluorescent light bulbs and water restrictors to help get you started, as well as a customized report detailing suggested energy-saving measures and the estimated costs for making those improvements.
  • Use a programmable thermostat and gain better control over your energy usage. According to ENERGY STAR, if used properly, a programmable thermostat can save up to $180 a year.
  • Adjust your thermostat down two degrees in the winter and up two degrees in the summer and save up to $45 a year.
  • Turn off all unnecessary lights and use compact fluorescent light bulbs, which use about 75% less energy than standard incandescent bulbs.
  • Seal and save. As much as 20 percent of air flow is lost through leaks in your ductwork. Sealing leaks around the house with caulk, spray foam, and weather-stripping can improve home comfort while reducing overall energy costs.
  • Check your HVAC system's air filter regularly and replace as necessary according to the manufacturer’s recommendations. A dirty filter will slow air flow, making your system work harder to keep you warm in winter.


Visit www.lge-ku.com/ee for more information on how to stay comfortable while saving energy and money.



Louisville Gas and Electric Company, part of the PPL Corporation (NYSE: PPL) family of companies, is a regulated utility that serves 317,000 natural gas and 392,000 electric customers in Louisville and 16 surrounding counties. It has consistently ranked among the best companies for customer service in the United States. More information is available at www.lge-ku.com and www.pplweb.com.