MLGW asks for rate increase and $27 million to improve aging grid - Action News 5

MLGW asks for rate increase and $27 million to improve aging grid

MEMPHIS, Tenn. (WMC) - Thousands of MLGW customers are one step closer to a rate hike in the new year.

The Memphis City Council voted Thursday to move the proposed increase on your electric bill out of committee and on to the full council.

With many customers already complaining about high power bills some folks believe that a 12 percent hike in electric bills spread out over 3 years is too much on top of what we already pay.

It’s not a done deal but Memphis City Councilors decided Thursday to send a proposed 12 percent electric bill hike to full council for more consideration.

It wouldn’t be 12 percent all at once but four percent over the next three years.

Councilwoman Michalyn Easter-Thomas asked MLGW President and CEO Doug McGowen if the hike is approved would electricity bills ever go down. The answer is NO.

“I would be foolish to tell you that there is ever an expectation that rates will go back down. We don’t know across history that utilities have done that successfully. I can tell you sure that I’ll give you the temporary rate increase only to come back the very next year and increase the rate,” said Doug McGowen, MLGW President and CEO.

Also, up for a long discussion is the purchase of a new communication system for MLGW.

McGowen said it will help make the grid better—allowing for power distribution automation.

“It does it without us having to take any action, the computer does it all for us. It’s an automatic detour of electric power,” said McGowen.

The cost for the new communication system would be $27 million to purchase a system McGowen said is more reliable than the current grid.

“On July 18, 2023, we had a storm roll through and 155,000 people lost power. With a fully automated distribution management system [in place] only 46,000 would’ve lost power. 109,000 [fewer] people would have lost power,” said McGowen.

Councilman Chase Carlisle said he believes McGowen is making the right calls.

“We put Chief McGowen in place to rectify some of the things that have historically been problematic. And I think Doug’s now been 12 months in with 6 huge storms, he has since been a wartime operator and we are trying to hold his feet to the fire and people are trying to crucify him as if he were responsible for distribution problems for 30 years,” said Chase Carlisle, Memphis City Councilmen.

Both the proposed rate hike and the communication system purchase will move to the full council to be discussed on November 21.

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