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LOUISVILLE, Ky. (WDRB) – The Kentucky Public Service Commission has agreed to a settlement limiting a proposed rate hike for LG&E and Kentucky Utility customers, the agency said Tuesday.

The settlement, which the utilities announced in April, will result in essentially no change in the average monthly electricity bill for LG&E residential customers and a $1.31 monthly increase for natural gas users. KU customers will see a roughly $9 increase each month.

Prior to the settlement, LG&E had wanted a larger increase that would have led to an estimated $2.74 monthly hike for electric customers and a $2.59 jump for gas customers.

As part of the agreement, the PSC said the utilities will make permanent a 25-cent charge per meter paid by residential users into a fund for low-income customers; shareholders will add at least $1.15 million each year. They also will continue a program helping schools lower energy costs and launch a study of energy-efficient programs for industrial users.

Kentucky Attorney General Jack Conway’s office was among 10 groups that were party to the LG&E rate case and either agreed to or didn’t oppose the settlement, according to the PSC. They included the Louisville-based Metropolitan Housing Coalition, Kroger Co., Wal-Mart and the Sierra Club, among others.

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By Marcus Green. Copyright 2015 WDRB News. All rights reserved.