Utility Rates
Definition
The prices charged for electricity, natural gas, water, and sewer services, typically measured per unit (kilowatt-hour for electricity, gallon or CCF for water/gas). Utility rates are set through different processes: investor-owned utilities like LG&E have rates approved by state regulators, while public utilities like Louisville Water set rates through their governing boards. Utility costs are significant household expenses, averaging $200-300+ monthly for Louisville families.
Louisville Context
Louisville utility costs have increased significantly: LG&E electricity rates up 30%+ since 2010, natural gas rates volatile based on market prices, Louisville Water rates relatively stable, and MSD sewer rates tripled since 2005 to fund CSO fixes. Total utility costs now consume 8-12% of income for median households and 15-25% for low-income households. Rising utility costs force difficult tradeoffs between heating/cooling, food, medicine, and other necessities.
Why It Matters
Utility affordability affects health and safety—families can’t safely live without electricity, heat, water, and working sewers. When utility costs consume excessive income shares, families face disconnections, health risks from extreme temperatures, and impossible choices between utilities and other basics. Low-income families pay disproportionate shares of income for utilities while having least ability to improve efficiency.
Dave’s Proposal
Dave will advocate for utility affordability through expanded assistance programs, percentage-of-income payment plans capping utility costs at 6% of income for low-income households, and disconnection protections during extreme temperatures. He’ll expand energy efficiency programs reducing long-term costs. He’ll push MSD and Louisville Water to slow rate increases and LG&E regulators to reject excessive rate requests.