MEMPHIS, Tenn — Plenty of questions remain Wednesday after the Memphis City Council approved a 12-percent rate increase for Memphis Light Gas and Water.
The increase comes in a city with a poverty rate (21.4 percent) above the national average (12.6 percent), according to the University of Memphis. MLGW said the rate hike is the only option to make the system more reliable and modern.
South Memphis business owner Dwayne McCray finds himself in a unique situation.
“I’m constantly getting flooded. I’m constantly having power outages, which affects me being able to make a living, but yet, you’re increasing my cost of living?” he said.
McCray’s car detailing business, Showroom C.A.R.S., is in one of Memphis’s highest poverty zip codes.
“At MLGW, we have a lot of people that are making well over $100,000 a year, and here as small business owners, we’re struggling,” he said. “We’re pinching pennies to try to survive.”
Amanda Williams, who also lives in the area, said she struggles with earning a livable wage.
“[The rate hike is] going to hurt me a lot,” Williams said. “I normally pay $400 a month.”
MLGW President and CEO Doug McGowen said they have more funding specifically for utility assistance, and MLGW will be looking to add to the already existing programs to help their customers.
“There will be more funding available for customers who need it in the coming years, so that is a compliment to what we are doing here,” McGowen said.
As of now, MLGW has about five programs that assist customers with their bills. McCray said he can live with the rate hike as long as it actually helps fix the city’s power problems.
“I haven’t seen it in the past where they actually honored the things that they are increasing our rates up to do,” McCray said.
McCray said he would like to see a voucher program for qualified low-income Memphians.