State utility regulator opens investigation into rising gas, electricity costs

Kentucky’s utility regulator has launched an effort to study the affordability of electric and natural gas utility service for residential ratepayers, arguing that utility access is “fundamental to the health, safety, and well-being of Kentuckians.”

A Wednesday press release from the Kentucky Public Service Commission says federal data shows the cost of electricity for residential ratepayers in Kentucky has increased by 21.8% from 2020 to 2025.

The regulator wrote that because of rising utility costs, the agency believes a “broader examination” of affordability issues would help it better understand “the factors affecting affordability” and “evaluate existing and potential approaches for addressing those concerns.” 

A coalition of groups advocating for the environment, renewable energy and consumers had called on the regulator in June to launch such an affordability investigation that would include examining the potential costs of fossil fuels and data centers. 

The regulator plans to host a “technical conference” next year examining the issues brought to light in the investigation. The regulator is asking utilities and other interested groups to submit initial comments in the investigation by the end of September. 

Kentuckians can also submit a public comment in the case by searching for the specific case number for the investigation: 2026-00185.