Electricity Rate in Kentucky (2026): 14.98c/kWh Average
The EIA residential electricity price in Kentucky is 14.98 cents per kWh as of May 2026, 3.46c below the US average of 18.44c/kWh. The Kentucky commercial rate is 13.09c/kWh and the industrial rate is 7.13c/kWh (EIA Electric Power Monthly, Table 5.6.A).
Kentucky Electricity Rate: What You Need to Know
Kentucky electricity averages 14.98 cents per kWh for residential customers as of May 2026, according to the EIA Electric Power Monthly. This is 3.46c below the US average of 18.44c/kWh. The average monthly bill for Kentucky households is $149 based on typical usage of 1122 kWh.
Kentucky has some of the cheaper electricity in the country - 14.98c/kWh (May 2026), well below the US average of 18.44c - because it runs on coal more than almost any other state. Coal still generates roughly two-thirds of Kentucky's electricity, with natural gas near a quarter, hydro from the Ohio and Cumberland river dams about 5%, and only a thin renewables slice. That coal-heavy, low-fuel-cost base is the main reason rates stay low, though it also leaves bills exposed as the fleet ages and emissions rules tighten. The market is regulated with no residential retail choice. Three investor-owned utilities serve most households - Louisville Gas and Electric (LG&E) in the Louisville area and Kentucky Utilities (KU) across central and other regions, both owned by PPL Corporation, plus Kentucky Power (an AEP company) in the east - alongside TVA-served areas and a network of rural electric cooperatives. In a 2025 rate case the Kentucky Public Service Commission approved increases well below what the companies sought: about $59 million a year at LG&E and $128 million at KU effective January 1, 2026, lifting the typical LG&E residential electric bill about $5.14 a month and the typical KU bill about $8.73 - roughly half the $11 and $18 increases originally requested - with the utilities agreeing not to raise base rates again until at least August 2028. Kentucky's relatively high average usage of 1,122 kWh per month, driven by widespread electric heating, keeps the typical bill near $149 despite the low per-kWh price.
Generation mix: Coal 66%, natural gas 26%, hydro 5%, renewables 3%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.
Year-over-year change: Kentucky rates rose 8.2% year-over-year as of May 2026. This compares to the US average increase of 6.2% over the same period.
Regulated: You Cannot Switch Electricity Suppliers
LG&E and KU Energy operates as the regulated utility in Kentucky. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.
Your Kentucky Electricity Bill Components
State pre-selected in our full bill calculator with TOU and commercial modes.
Open Bill Calculator ->