Tag: MLGW

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Report: TVA Likely to Raise Rates for Customers Over Next 10 Years

CREDIT: TVA

TVA

TVA’s new natural-gas-fueled Combined Cycle Plant.

A report released Wednesday by Friends of the Earth (FOE) anticipates Tennessee Valley Authority (TVA) “substantially” raising rates for customers over the next ten years.

Memphis Light, Gas, and Water (MGLW) is currently in the process of doing an Integrated Resource Plan to determine if it should consider getting power from an alternative source (other than TVA) in the future. The utility formed an advisory committee in April to weigh the option of alternative power sources.

Earlier this year, a study ordered by FOE and completed by the Brattle Group concluded that switching from TVA could save MLGW $240 million to $333 million each year.

The new report issued Wednesday, conducted by Synapse Energy Economic, Inc, concluded that several factors could require TVA to increase its rates, which would ultimately lead to higher bills for customers.

From 2006 to 2018, TVA increased rates for MGLW by 30 percent, according to the report. Last year the utility purchased a little over $1 billion worth of electricity from TVA.

“The TVA’s rates have increased substantially over the last decade and this new report illustrates they are likely to increase substantially over the next decade, even if TVA claims they won’t,” said Herman Morris, former MLGW president and advisor to FOE. “The TVA will pay the price for its outdated, dirty power and pass the cost on to Memphis families and small businesses if we don’t make a chance to alternative power sources.”

The study highlights five risk factors that could cause TVA to raise its rates for local power companies like MLGW. Those factors include coal ash remediation, fossil full price increases, carbon prices, early plant retirement, and load departures.

[pullquote-1] Coal Ash Remediation


The remediation of coal ash or Coal Combustion Residuals (CCR) represents a larger potential cost for TVA, the reports says. TVA is committed to elimination the wet storage of CCRs in its service area. The utility is expected to spend $1.2 billion to do this over the next three years, yielding a possible rate increase of up to 2.3 percent.

Fossil Fuel Prices

The price of fossil fuels are expected to rise “significantly” over the next two decades, the report predicts. The price of coal, from which TVA generates 19 percent of its energy in 2018, is expected to increase by over 50 percent by 2038, while the price of natural gas, used to generate 20 percent of TVA’s energy, could double. As a result, rates could increase by 1 percent to 6 percent.

Carbon Prices

The report suggests that as efforts increase to combat global warming, there will be increasing costs associated with carbon emission. The study estimates that cost to be between $5 and $22 per ton of carbon dioxide in 2028, costing TVA anywhere from $125 million to $1.1 billion, and customers 1.25 to 11 percent more. The study also notes that it’s likely these prices would continue to increase in the future.

Plant Retirements

If TVA coal power plants are retired early because of failure to meet future carbon dioxide regulations, TVA would lose assets. For example, if 2,000 megawatts of coal is retired early, it would cause a loss of $1.4 billion over 10 years. This equates to a 1.4 percent increase in rates. These calculations are “purely hypothetical,” the report notes, “but coal plants are under various pressures and additional retirement of TVA coal plants in the next 10 years is a possibility.”

Load Reduction

If TVA’s sales decline, it’s rates will decrease. A decline in sales could come as a result of industries departing the region, customers adoption of energy efficient technologies, or adoption of distributed energy resources. For example, an 8 percent load reduction in 2028 could reduce TVA revenue by 4 percent and lead to a rate increase of 4.3 percent.

Taking these factors into account, the study concludes that by 2031 the cost of power for MLGW could increase by as much as $343 million, while rate increases for customers could increase anywhere from 9 to 34 percent.


TVA spokesperson Scott Brooks said the following in response to the report:

“Our most recent long-term financial plan, approved by the TVA Board, includes keeping rates flat over the next decade, and the proposal for 20-year agreement with local power companies also includes a reduction in the wholesale rate.

“TVA has not reviewed the report, but we are working directly with MLGW and members of the community to provide accurate information as the utility makes decisions on its relationship with TVA. We are confident that, after a thorough and accurate review, TVA is still the best option for the people of Memphis and Shelby County.”

Brooks notes that the risk factors laid out in the report are “generally part of our capital expenditures and are included in the long-term financial plan. Those costs are not necessarily passed on in rates, but often absorbed in the annual budget.

“TVA makes decisions on assets and costs, including the future of coal combustion residuals, based on potential impacts to the 10 million customers we serve.”




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News The Fly-By

MEMernet: MLGW Called Me What? and Christmas AF

Not a robot, bitch

Gene Rossetti was trying to report a street light outage on the Memphis Light, Gas & Water site recently when he got this subtle “I’m not a robot” captcha code:

Tell your kids

Your social feeds were clogged with the “I’m going to tell my kids” meme last weekend. Memphis band HEELS (Brennan Whalen and Joshua McLane) got perfectly in on the action with a selfie.

Christmas AF

The Memphis As Fuck brand showed off a new way to sport your civic pride this holiday season.

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MLGW Set to Present Rate Hike Proposal to City Council

Memphis Light, Gas and Water (MLGW) will present its proposal for rate hikes to the Memphis City Council on the afternoon of Tuesday, November 5th.

MLGW has been pushing for multi-year hikes in water, gas, and electric rates for at least the past three years. In January, the council rejected electric and gas hikes, but approved a 3 percent hike for water.

Now, the utility is pushing for increases in all three divisions over a three-year period. The plan calls for increasing electric rates by 4.2 percent in July 2020 and then 1.5 percent in both 2021 and 2022.

Water would increase by 15 percent in July 2020, 7 percent in 2021, and 5 percent in 2022. Gas would only see a one-time hike of 2 percent in 2022.

This would add about $14 to customer’s bills each month, according to the utility. That’s $4 less than last year’s proposed hikes would have tacked on.

MLGW officials say the extra revenue will be used to improve the utility’s infrastructure, which MLGW president and CEO J.T. Young has said in the past is “aged” and in need of an overhaul.

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In the past, some council members have been reluctant to approve rate hikes citing poverty rates here or MLGW’s need to find other ways to fund infrastructure improvements.

While other council members, supporting the rate hikes, argued that the council should not defer maintenance to the utility’s infrastructure any longer.

The council is set to hear MLGW’s proposal for the hikes Tuesday, but a vote on the issue isn’t slated until November 19th.

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MLGW: Damaged Infrastructure Complicates Power Restoration

CREDIT: MLGW

MLGW

MLGW president J.T. Young on site with restoration crew

As the number of Memphis Light, Gas, and Water (MLGW) customers without power as a result of Monday morning’s storm dropped to just under 2,700 Wednesday, the utility’s officials say damage to its infrastructure will “complicate” further restoration efforts.

Monday’s storm, which initially left 43,000 customers without power, brought winds of up to 65 miles per hour through parts of the city, with a moderate or EF-1 tornado hitting in some areas.

MLGW said Wednesday that the tornado hit one of its sub-station’s “complex infrastructure,” which “complicates restoration efforts.” The utility also said that its crews continue to find damage in the Parkway Village area. There, many properties have line damage, which the utility said can be time consuming to repair.

“MLGW crews will work quickly, safely, and around the clock to restore services,” the utility said.

MLGW noted that tree parts must be cleared from power lines before crews can begin repairing them. Additionally, customers with damaged meters must have them repaired by an electrician before power can be restored to their homes.

A total of 26 crews from other areas have joined MLGW’s crews in restoration efforts.

Assistance

The Shelby County Emergency Management and Homeland Security Office, the City of Memphis Office of Emergency Management, and the American Red Cross Mid-South Chapter are opening a resource center to assist those affected by the storm.

The Multi-Agency Resource Center is located at Olivet Baptist Church, 4450 Knight Arnold Road. The center’s hours are 10 a.m. to 6 p.m. on Thursday, October 24th and Friday, October 25th and 10 a.m. to 2 p.m. on Saturday, October 26th.

Additionally, for displaced residents, the American Red Cross has opened a 24-hour shelter at the Marian Hale Community Center, 4791 Willow Road.

To report storm damage, residents can complete a Shelby County Storm Damage Report here.

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MLGW: 85 Percent of Power Restored, Remaining Work Will be “Tedious”

CREDIT: MLGW

MLGW

Memphis Light, Gas, and Water (MLGW) officials said Tuesday afternoon that 85 percent of customers’ power has been restored following Monday morning’s storm.

Approximately 6,500 customers are still without power, down from 43,000 early Monday. Crews comprised of about 600 personnel are “actively working” to restore power, the utility said.

The remaining restoration efforts will focus first on schools and heavily impacted areas. The utility said moving forward the work will be “more tedious as we continue to assess widespread outages in Shelby County.” 

MLGW also said there is “extensive damage” that must be repaired before power can be restored in some areas. Repairs include resetting damaged poles, restringing fallen and torn wires, and cutting and removing tree parts.

Residents who have damaged meters are required to have them repaired before power can be restored.

To report a power outage, customers can call 901-544-6500. For an emergency such as gas leaks or downed electrical lines, customers should call 901-528-4465.



View MLGW’s outage map here. 

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MLGW: Power Restoration Will be Multi-Day Process

CREDIT: MLGW

MLGW

After Monday morning’s storm that brought winds of up to 65 miles per hour, Memphis Light, Gas, and Water (MLGW) officials say they are working to restore power to some 30,000 customers “as quickly and as safely as possible.”

J.T. Young, MLGW CEO and president said that the storm caused significant damage, initially leaving close to 43,000 customers without power.

Because of the large number of substations down, as well as multiple downed poles, wires, and trees, Young said that full restoration could take multiple days.

However, the goal is to restore 80 percent of lost power by midnight. Additional crews are expected to join the 42 MLGW crews already working later today to assist with the restoration process.


“There’s a lot of damage, as you might imagine, from this storm around Shelby County, really spread out across the county” Young said.

The utility still does not know the full impact of the storm and will continue to assess the damage, Young added.

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“We understand it’s not convenient when we have these challenges,” Young said. “Just make sure you’re taking your time as you travel and get around the community. We’re doing the best we can to get everyone restored as quickly and as safely as possible.”

See MLGW’s video below to find out more about the restoration process.

MLGW: Power Restoration Will be Multi-Day Process

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News The Fly-By

MEMernet: An Unlikely Trio and Wet Heat

It’s electric

About 17,000 Memphis Light, Gas & Water customers were without power last week when a storm rolled in Tuesday night. Reddit user tacojohn48 captured a striking glimpse of it over the Harahan Bridge.

But it’s a wet heat

Reddit user iliveinmemphis posted what we all thought last week.

“Going outside in Memphis the past two days is like opening your dishwasher to get a cup right after it finishes.” The comments on the post nailed it, too.

BandidoCoyote: “Getting out of the morning shower and getting dressed without drying off.”

Tralfamadorian82: “Opening your dryer before the towels are dry.”

Benefit_of_mrkite: “People lived here before AC. Double apply your Gold Bond and keep on.”

A decade of love

Joe Birch, Frayser Boy, and Holly Whitfield walk into a bar …

The I Love Memphis blog celebrated 10 years Saturday with a packed-out birthday party at Railgarten. For the anniversary, Birch tweeted what scientists are calling one of the most Memphis photographs ever taken.

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News The Fly-By

MEMernet: Hack Memphis & 901 Memes

MLG&Waiting

Posted to Instagram.

Hack Memphis

Last week, Reddit user runfreedog asked the internet for pro-tips or life hacks for living in Memphis.

Memphisvol8668: If you want to feel alive, drive in the lane closest to the sidewalk on Poplar in either direction.

KimJongHard-un: Or, alternatively, ride in the middle lane between a MATA bus and an 18-wheeler.

PenBandit: There’s no such thing as jaywalking in Memphis. If there’s no traffic, go on and cross. No one cares. We joke about turning your flashers on to park anywhere. This is not true. The parking enforcement people Downtown are some MFing, grade-A ninjas.

plentyinsane: If you grocery shop on weekends, do it (Sunday) morning when everyone is at church.

Posted to Memphis subreddit.

Memphis AF

That moment when FedEx said screw it and turned Memphis AF.

Posted to Facebook by Memphis Memes 901.

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MLGW: No Rate Increases Slowing Lead Pipe Replacements

CREDIT: MLGW

MLGW

Officials with Memphis Light, Gas, and Water (MLGW) said the fact that there have been no rate increases this year has slowed down the utility’s replacement of lead pipes.

Giving a Memphis City Council committee an update on MLGW’s lead line replacement progress, Rhonda Morgan, MLGW’s manager of water, construction, and maintenance, said the utility had to cut the budget for this service after no rate increases were approved for MLGW by the council earlier this year.

The line item that includes funding for replacing lead lines was cut by 80 percent, dropping from $7.4 million to $1.5 million, Morgan said.

Since 2012, MLGW has replaced 3,417 lead service lines, Morgan said. So far this year, the utility has replaced 224 lines.

The goal was to have all the lead lines replaced by 2022, but Morgan said she doesn’t think that is “feasible” with MLGW’s current staffing. The utility can replace between 1,200 to 1,500 lines a year with its current personnel, Morgan said.

Morgan said the utility is responsible for only the street service line which runs from the curb stop to the main water line. MLGW replaces these pipes if they are lead.

Beyond the curb, it becomes the responsibility of the homeowner to have the lines inspected by a plumber and replaced if necessary.

Councilwoman Cheyenne Johnson questioned if the utility provides assistance to those who can’t afford to have their end of the line replaced.

MLGW president and CEO, J.T. Young said the utility is trying to find ways to help customers in those situations and similar ones. However, he said to date, the utility hasn’t been able to secure any grants or other funding sources for those efforts, but that MLGW is “continuing to pursue” those options.

There is a map on MLGW’s website that will tell you if MLGW has found lead in your water pipes. Morgan said homeowners are notified of the replacement before and after the service is completed.


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Leaving TVA Could Free up MLGW Funds for Infrastructure Improvements

CREDIT: MLGW

MLGW

Switching to another power supplier could help Memphis Light, Gas, and Water (MLGW) save money in one area, and invest in another, such as infrastructure, which could reduce power outages in the long run, says Memphis Mayor Jim Strickland.

After heavy storms hit Memphis on May 18th, approximately 27,000 MLGW customers were without power and some didn’t have it restored until Tuesday, May 21st. Strickland said in his weekly newsletter last week that that’s “unacceptable.”

“First, let’s talk about power outages,” Strickland wrote. “We had too many of them for too long after Saturday night’s storm. It’s unacceptable. So, how to fix it?”

The mayor said the city’s electric infrastructure is “old and in dire need of an overhaul.”

However, Strickland said that’s a “high-dollar endeavor,” and paying for infrastructure upgrades would be a challenge.

To that end, the mayor said the city is “serious about the possibility of finding major savings” that could come as a result of a switch from the Tennessee Valley Authority to a new power supplier with lower rates.

Strickland said switching could save MLGW money that would fund new infrastructure.

Infrastructure includes everything from poles, wires, transformers, and the metering system, said MLGW CEO and president J.T. Young.

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Young discussed similar infrastructure concerns Thursday during a Facebook Live discussion, but said that improving infrastructure will not reduce all outages.


Young said the infrastructure challenges that we have are to some degree significant, but that when severe weather like the May 18th storm hits Memphis, “we were going to experience outages regardless of the type of infrastructure.”

But, Young said the upgrades that the utility is planning would minimize the number and length of outages.

“I think the perception might be that nothing’s been done over the past several years with our system,” Young said. “When things break, we replace them. That costs money.”

Looking at past budgets and data, Young said MLGW has invested “quite a bit” of both capital and operational funds into maintaining the system.

“I would equate it to maintaining your car,” Young said. “You take it in every so many miles and you get oil changes and those kinds of things, but you really don’t do an overhaul of your engine or transmission or what have you, except for rare situations.”

Young said this is that rare occasion in which much of the utility’s system is in need of an overhaul.

“We’ve got some very, very old equipment,” Young said. “You can maintain equipment, which is what we’ve done and I think our folks have done a great job at keeping the system up and running, but it is certainly time to make some major investment in equipment.”

[pullquote-1]

Some of those investments will be put into automated services, underground cable repairs, and tree trimming, which will result in fewer outages, Young said.


“We just know it’s time to make some rather significant investments from a preventative standpoint, where we will not have to be reacting all of the time,” Young said. “Now it’s time to make some much needed investments so we aren’t always being reactive.”

In the meantime, as summer approaches, customers can expect more storms, Young said.

“No matter what type of infrastructure we have, we’re going to have outages,” Young said. “The resilience of our infrastructure is important, but even with the most resilient infrastructure, you will have occasional outages.”

When outages occur, Young said the utility moves “as quickly as we can” into the restoration process because “we know we don’t just deliver electricity.

“We are delivering hope. When you don’t have power, you really feel like sometimes you don’t have hope, especially the longer it goes.”