Standoff over next MLGW CEO could be settled Tuesday
Mayor Jim Strickland has nominated Doug McGowen to lead the city-owned utility. But council chair Martavius Jones wants the city to do a national search for the next president and CEO of MLGW.
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Mayor Jim Strickland has nominated Doug McGowen to lead the city-owned utility. But council chair Martavius Jones wants the city to do a national search for the next president and CEO of MLGW.
The council has unusual back-to-back meetings this week and next week, which might have been a factor in delaying what could be a standoff over the appointment for another week.
Memphis Mayor Jim Strickland says he is ready for the council to act on his appointment to lead MLGW. But council chairman Martavius Jones says it’s not on the agenda Tuesday and he wants a national search.
Memphis Mayor Jim Strickland reacted Friday to a call from City Council Chairman Martavius Jones to conduct a national search for the next president and CEO of Memphis Light, Gas and Water Division.
The appointment of Doug McGowen to head the utility and the appointment of Chandell Ryan to succeed McGowen as city chief operating officers are not on next week’s committee agenda for the council to consider.
Doug McGowen has been COO since Mayor Jim Strickland took office in 2016. With council confirmation, Chandell Ryan would become the first woman to run city government on a day-to-day basis.
MLGW is accepting comments at PowerSupply@mlgw.org and at board meetings until the board votes.
Critics of MLGW’s recommendation to sign a long-term contract with the TVA say the 13 bids were evaluated during highly unusual circumstances.
Memphis Mayor Jim Strickland will eventually nominate a replacement that Memphis City Council confirms.
Only three bidders — NextEra Energy, the Tennessee Valley Authority and the Franklin L. Haney Company — submitted full-requirement proposals to MLGW during its RFP process for a new energy provider.
After taking almost 300 days to study the responses themselves and come up with their recommendation to stay with TVA, MLGW is allowing only 30 days for the public to review and comment.
Young said his decision to leave the utility was largely driven by family. Related story:
Young leaves MLGW after four years. His departure next month comes at a critical point in the utility’s consideration of leaving the Tennessee Valley Authority.
MLGW has failed its fiduciary duties to its ratepayers. The ratepayers deserves a fair RFP. City Council should vote against the TVA contract until all questions are answered, even if it takes a few years.
Several citizens publicly objected to a long-term contract between MLGW and the TVA, saying the utility shouldn’t lock itself into a deal that diminishes its negotiating power in a rapidly changing energy market.
“MLGW’s decision on its future power supply is one of the most consequential single decisions that any community has made in the history of SACE’s work throughout the Southeast region over the past three decades,” said the executive director of the Southern Alliance for Clean Energy.
Lyash cited stability, discounted base rates and flexibility for utilities to build out carbon-free generation as the biggest draws for a long-term contract, but its terms are nonnegotiable.
The recommendation Thursday, Sept. 1, from MLGW CEO and President J.T. Young will likely not be the last word on the issue.
The Tennessee director of the Southern Environmental Law Center said TVA’s proposed agreement make it difficult to change energy providers, and it’s unlikely that MLGW would undergo another evaluation process similar to the current one if it signs a long-term deal. Related stories: MLGW leaders recommend staying with TVA for greatest value, least risk Suburban mayors back MLGW recommendation, still want representation
With Memphis Light, Gas & Water Division now leaning toward staying the TVA as its power supplier, suburban leaders’ focus shifts to representation on the utility’s board.
TVA’s long-term contract proposal offers a 3% reduction in MLGW’s current base rate but also includes a 20-year termination notice compared to the current five-year notice. The City of Memphis has responded to the recommendation. Suburban mayors back MLGW recommendation, still want representationRelated story:
Less than 24 hours before MLGW management makes a recommendation for the utility’s next power supplier, the TVA refuted claims that it leaned on another electricity provider during some of the hottest days of the year. Related story:
At Thursday’s meeting, MLGW management will recommend whether they think the utility should continue with TVA or go with a different power provider. Related story:
Another round of suburbs add their input Tuesday, Aug. 30, on the potential MLGW-TVA split.
Half of Shelby County’s suburbs passed a resolution seeking a voice in decisions regarding Memphis Light, Gas and Water Division.