Kentucky Utilities and Louisville Gas and Electric Co. have agreed to reduce their rate increase proposal, a move that Kentucky Attorney General Andy Beshear’s office said will save ratepayers $90 million annually.


The utilities were seeking nearly $210 million in increased annual revenues, but Beshear had proposed cutting the request. Beshear’s office said in a news release that the parties signed a settlement Wednesday.


The Kentucky Public Service Commission will review the settlement May 9. If approved, the utilities said in a news release that KU would receive a revenue increase of $54.9 million, while LG&E would have increases of $59.4 million in electric revenue and $7.5 million in natural gas.


The utilities also agreed to a smaller increase in monthly fixed charges and to withdraw plans for full deployment of "smart meters."

KU Energy serves 77 Kentucky counties, including several in west Kentucky, and five counties in Virginia.