MEMPHIS, Tenn. — MLGW President Doug McGowen spoke to the media Wednesday morning after the company's board meeting, and he gave an explanation behind the request to increase utility bills by 12% for Memphians.
According to McGowen, MLGW initially asked its board to increase utility bills by more than 10%, but increased that request to 12% over three years, citing infrastructure and electrical grid improvements. McGowen said the increased request comes from inflation to repair and construction costs.
McGowen said the average MLGW customer would see their bill rise by $5 a month in 2024, and again the next year, raising the average bill from $120 to $135 by 2026.
He also said the utility will be moving MLGW's main office - away from their downtown Memphis location - to a new 300,000 sq. foot facility in Cordova that would better consolidate their operations.
McGowen said the move and the cost increase for upgrades would be the best long-term solution for MLGW.
"There are no guarantees, but, the aggressive program of improvements that we are forecasting for our electric is our best path forward," McGowen said.
McGowen added, for MLGW customers unable to pay their billl, the utility has "aggressive" utility assistance programs through MIFA and the United Way.
