MEMPHIS, Tenn. — The last big move by the former head of Memphis Light Gas and Water has ended in a thud and we all should be thrilled.
The utility’s board Wednesday unanimously rejected a recommendation for a 20-year rolling agreement to continue getting electricity from the Tennessee Valley Authority. Instead, MLGW will continue its current agreement with TVA with no changes and no further back and forth haggling.
This is an emphatic rebuke of the utility’s former CEO J.T. Young – who resigned in October for another job in Florida. It’s also a loss for the TVA – although it tried to spin the decision as a positive move for all parties. That’s what P. R. is for, but the MLGW board showed us that it is not a rubber stamp for a former CEO – who never really seriously considered looking at other options for electricity. Board members simply said a 20-year deal was entirely too long and they are correct.
The debate over whether the publicly-owned utility should switch power suppliers has been going on for years and lots of money has been spent on consultants and other expenses. But this was a decision that affects all of us and it would have been a travesty for the board to agree to such a lengthy deal. Several operational issues at MLGW still remain but at least this debate is off the table – for now.