City Council approves 12% hike in electricity rates starting in 2024 - WREG NewsChannel 3
City Council approves 12% hike in electricity rates starting in 2024
MEMPHIS, Tenn. — The Memphis City Council approved MLGW’s request to raise electric rates by 12% over the coming years.
Over the next three years, your electric bill will go up 12% gradually. Gas and water rates will remain the same.
MLGW President Doug McGowen said electric rates have remained steady over the past four decades, but inflation and aging infrastructure have caught up with the city.
McGowen said outages have become twice as frequent, and last three times as long. Part of the money from the rate increase will go towards replacing older transformers and replacing underground wiring.
He also says the cost of the rate increase is less than the cost of a fridge full of food that can ruined by a power outage.
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Even with the increase, average bills will remain the lowest in the country, among utilities surveyed, according to MLGW.
Related Knowledge Center: Electric vehicles
As electric vehicles — critical in the effort to reduce emissions in transportation — become more economical, the federal government and some states are addressing the need for supporting infrastructure, such as charging stations.