FRANKFORT — The Kentucky Public Service Commission (PSC) accepted a settlement granting revenue adjustments that will increase the base electric rates for customers of Kentucky Utilities Co. (KU) and the base electric and natural gas rates for customers of Louisville Gas and Electric Co. (LG&E).

Under the settlement agreement, the average monthly bill for a typical KU residential customer will increase by $5.16 (5.6 percent). A typical LG&E residential electric customer will see the average monthly bill increase by $4.25 (5 percent).

The average monthly bill for an LG&E residential natural gas customer will increase by $5.57, a figure that includes a new surcharge for infrastructure improvements but does not take into account any fluctuations in the price of natural gas itself.

The revenue adjustments are at levels agreed to by the two utilities, the Kentucky Office of Attorney General and other parties to the utilities’ rate cases. Among them include the Kentucky Industrial Utility Customers Inc. (KIUC), Kroger Co. the Kentucky School Boards Association and advocates for low-income customers.

The PSC said accepting the settlement is in the public interest because they result in rates “consistent with those justified by our traditional rate-making analysis.”

The PSC found the rates in the settlement are fair, just and reasonable. The new rates take effect on Jan. 1.