Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Kentucky.
Kentucky has a regulated electricity market served primarily by Louisville Gas & Electric (LG&E), Kentucky Utilities (KU), Duke Energy Kentucky, and Kentucky Power (AEP subsidiary). Commercial customers cannot choose their electricity supplier. The Kentucky Public Service Commission regulates rates and utility operations.
What this means for property managers:
In Kentucky's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.
Rates are set by the public utility commission. No supplier choice available.
Rising
Rates increasing as utilities invest in replacing aging coal generation with natural gas and renewables. LG&E/KU filed for 7% rate increases in 2025 to fund the energy transition.
Kentucky has no statewide energy benchmarking or building performance mandates. The state is heavily dependent on coal generation and transitioning slowly to a diversified energy mix. Louisville has adopted sustainability goals with voluntary commercial building energy efficiency targets. Kentucky's low electricity rates historically have not incentivized aggressive building energy efficiency investments.
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