by Gabe BullardThe Kentucky Public Service Commission has denied a request from the Attorney General's office to throw out a rate case for LG&E and KU.The two utilities have asked the PSC to approve a rate increase for infrastructure improvements and to recoup losses incurred after recent storms. The PSC also must rule in a separate filing on the proposed sale of LG&E and KU to Pennsylvania-based PPL.Saying the sale would affect the utilities' financial conditions, Attorney General Jack Conway asked the PSC to throw out the rate case until after the sale goes through.LG&E and KU officials argued that the sale will affect PPL's finances, but said the rate case is unrelated. The PSC agreed and will hold a hearing on the rate case today.After the hearing, Conway can again file a request to throw out the rate case.