Energy Deregulation in Kentucky
Deregulated energy services: Only natural gas.
Deregulated gas service territories: Atmos Energy, Columbia Gas, Louisville Gas and Electricity
The Kentucky Public Service Commission (PSC) deregulated the natural gas industry in 2000. Although the market is deregulated, any gas price changes introduced by providers are carefully examined by the PSC, protecting consumers from sudden price hikes. Natural gas is the main heating fuel for around 35% of Kentucky’s households, and they represent around 14% of the state’s total consumption.
Kentucky is crossed by seven interstate gas pipelines, and the state generates around 21% of its electricity from natural gas. Although Kentucky produces natural gas, local consumption is around five times larger than production. The state has 22 underground gas storage facilities that can hold 222 billion cubic feet, representing 2% of total US storage capacity.
Kentucky has more than 14,300 orphaned oil and gas wells, which are a considerable source of methane emissions. Compared with carbon dioxide, methane is around 25 times more potent as a greenhouse gas. For this reason, the US Department of Interior announced a fund of nearly $104 million to help clean up abandoned oil and gas wells in Kentucky.