In Lexington, utility bills surprisingly take up a significant portion of the budget when planning expenses.

The costs for air conditioning in the summer and heating in the winter vary by season, and it can be overwhelming not knowing how much to expect when you first move in.

This is an overview of the electric and gas utility situation in Lexington.

Electricity in Lexington is primarily supplied by Kentucky Utilities (KU) or the Lexington-Fayette Urban County Government Utility. Depending on the apartment or house, the electric supplier may differ, so it's important to check before moving in.

During the summer months (June to August), electricity rates can rise significantly. For a one-bedroom apartment, the highest summer electric bill can range from $150 to $250 per month. Given Lexington's hot and humid summers, living without air conditioning can be difficult, which drives up cooling costs.

Winter heating (December to February) is mainly done using natural gas. Gas is primarily supplied by Columbia Gas of Kentucky or Atmos Energy.

Winter gas bills can vary greatly depending on the size of the home and its insulation, but for a one-bedroom apartment, a typical range is $80 to $150 per month. In the cold month of January, bills may be higher than this.

In years like 2021, when record cold snaps occurred, gas prices spiked significantly. When combining electric and gas costs, budgeting for $200 to $350 per month in winter is realistic.

Ways to reduce utility bills include using energy-efficient appliances (Energy Star rated), installing smart thermostats, and improving window insulation. Kentucky Utilities offers a utility assistance program for low-income households (Low Income Home Energy Assistance Program, LIHEAP).

When signing a lease, it's essential to confirm whether utilities are included in the rent (all-inclusive) or if they are separate.

Utility costs in Lexington are lower than in major cities on the East and West Coasts, but they are not entirely inexpensive.

By planning a seasonal budget effectively, you can reduce the financial burden of utility bills.