MEMPHIS, Tenn. (localmemphis.com) – A new report by an energy and environmental consulting firm estimates Memphis, Light, Gas and Water customers could see their rates go up between 6% and 21% by 2026 – if the company continues to buy its power from the Tennessee Valley Authority.
The study, sponsored by Friends of the Earth and delivered by Synapse Energy Economics, said its rate increase estimates were tied to their belief of increased costs for fossil fuels, coal ash cleanup, and repairs to older power plants in the TVA system.
“What we are saying is there is a probability that some of these and perhaps over the course of 30 years, all of these will take place if and they do take place, they would have an impact of TVA’s costs,” Former MLGW president Herman Morris, an advisor to the study, said.
The firm who conducted this study was hired in the past by those at MISO, one of two energy alternatives promising to save MLGW hundreds of millions of dollars if the company ends its decades-long relationship with the TVA.
The study comes the same time MLGW leaders commissioned a different study and developed an Integrated Resource Plan to consider those alternatives, not only MISO but also a proposal by Nuclear Development LLC.
A decision on whether MLGW will continue with TVA is expected in the spring. If there’s a change, MLGW would be required to give a five-year notice.