MEMPHIS, Tenn. — There are big changes in store for Memphis, Light, Gas and Water customers. Starting next, month people will receive higher bills to pay for infrastructure improvements.
In January, customers will see, on average, an additional $5 added to their monthly bill.
Resident Ricco Chalmers questioned what the utility company has already done with the money from the other hike in July 2020.
“I’m sure there are some improvements that need to be done, but what about all the improvements that they have done, like these smart meters, which I have,” Chalmers said.
He told ABC24 his meter has not been working properly. He noticed his bill increased to $30,000 in June.
“They told me to just pay something on it while they investigate. I just recently called back, and they say it's still under review. Now it’s currently $34,705. They’re adding on to it.”
Memphis City Council recently voted 9-4 and approved the 12% rate hike. The Memphis Community Against Pollution organization, which advocates for clean water, soil, and air, wanted board members to research other alternatives before approving the increase.
President Ke’Shaun Pearson said he also wants full transparency on how the funds are going to be used, along with energy-efficient resources.
“We are here three years later, in arguably a worse situation. MLGW has used the money, and it has not even used all of it. We still are behind on tree trimming. We still have lights that flicker,” Pearson said. “We still have bills that are insurmountable and incorrect. So, what we are seeing is a continuation of a process of exploitation without enough information.”
Since MLGW receives its power from the Tennessee Valley Authority, Pearson said it is also driving up costs for residents.
“TVA has proposed even more fossil fuel expansion, and we are vehemently against that. TVA has also increased gas prices, 4%, and that 4% increase that MLGW faces, has also translated to bills of the folks here in Memphis,” Pearson explained.
MLGW has five utility assistance programs for people who cannot afford to pay. President and CEO Doug McGowen stated that the company is looking at adding more programs to help offset the costs.
“There will be more funding available for customers who will need it in the coming years,” McGowen mentioned.
Customers will see their bill increase to an additional $5 per month, then $10 in 2025, and $15 per month in 2026.