MEMPHIS, Tenn. (localmemphis.com) – What’s going on with these monthly meetings is something that might be one of the biggest decisions in this city’s history.
Two consulting firms, doing their own work, came to the same conclusion.
If Memphis Light, Gas and Water buys power from some place other than the Tennessee Valley Authority, they will save big bucks.
“We are talking about a million dollars a day approximately,” says Judah Rose of the consulting firm ICF International.
Rose says the study his group did shows MLGW could purchase power from a company called MISO (Midcontinent Independent System Operators) for a lot less than from the TVA.
He says not to worry about reliability.
“It’s not a question of reliability,” says Rose. “It’s the fact you have an opportunity to save $1-million a day. It requires effort and work and you should get on the, uh, do it as quickly as possible. It’s a lot of money for a lot of possible purposes.”
More than 20 years ago, former Memphis Mayor Willie Herenton wanted to sell MLGW to a private company for about $800 million.
In this case, the city would keep the company, and the savings.
Attorney Herman Morris was the Chief Executive Officer of Memphis Light, Gas and Water when there were discussions to sell the company. He now represents the Friends of the Earth group.
They did their own work and came to the same conclusions: buy power from somebody else and MLGW would save $1 million a day.
“This is probably the most important thing Memphis can do to protect and preserve MLGW,” he says.
Current boss J.T. Young says slow down.
“We’d have to know a lot of things and commit to those things today in order to get that, which is something we’re not ready to do,” he says.
This was the final meeting of the year for the Power Supply Advisory Team. There will be three more meetings next year, with everything wrapping up in March.