Gas vs. electric driving costs · adjust vehicle and price period below
Why is it like this in Kentucky?
Kentucky's electricity rate of about 13.7¢/kWh sits near the breakeven for a typical PHEV versus gasoline. The PSC approved the first major rate increases for LG&E and KU in years in early 2026 — $5.14/month for LG&E customers and $8.73/month for KU customers — following a contested settlement. Kentucky regulators also approved new gas plant construction tied to data center load, signaling further increases are likely. Despite the recent rate increases, electricity is still the cheaper per-mile option for most Kentucky PHEV drivers at the January 2026 baseline — though the margin is narrowing as ongoing rate cases add to the cost of charging.
In the news · Kentucky
Covers the contested LG&E/KU rate settlement — locking in monthly increases of ~$5 (LG&E) and ~$9 (KU) for residential customers through 2028 — a moderate but meaningful step up in Kentucky electricity costs relevant to PHEV plug-in economics.
The PSC's February 2026 final order cut LG&E's approved electric increase to $5.14/month and KU's to $8.73/month — still the first major rate increases for these Kentucky utilities in years, raising the electricity cost baseline for PHEV drivers.
Kentucky regulators approved new gas plant construction tied to data center demand — signaling that future rate cases will bring additional increases to Kentucky electricity costs beyond the 2025 settlement, with implications for long-term PHEV charging costs.
Curated coverage of Kentucky's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.
Southeast region comparison
| State | Electric ¢/mi | Gas ¢/mi | Cheaper | Annual diff |
|---|---|---|---|---|
| West Virginia | 4.5¢ | 7.5¢ | ⚡ Electric | $363/yr |
| North Carolina | 4.1¢ | 7.0¢ | ⚡ Electric | $346/yr |
| Arkansas | 3.7¢ | 6.4¢ | ⚡ Electric | $319/yr |
| Louisiana | 3.8¢ | 6.4¢ | ⚡ Electric | $313/yr |
| Tennessee | 4.0¢ | 6.6¢ | ⚡ Electric | $310/yr |
| Georgia | 4.4¢ | 6.9¢ | ⚡ Electric | $307/yr |
| Florida | 4.8¢ | 7.3¢ | ⚡ Electric | $295/yr |
| Kentucky | 4.3¢ | 6.8¢ | ⚡ Electric | $295/yr |
| Virginia | 4.8¢ | 7.3¢ | ⚡ Electric | $294/yr |
| Mississippi | 4.3¢ | 6.4¢ | ⚡ Electric | $247/yr |
| South Carolina | 4.7¢ | 6.6¢ | ⚡ Electric | $230/yr |
| Alabama | 4.9¢ | 6.5¢ | ⚡ Electric | $201/yr |