MLGW power vote doesn’t pull plug on energy provider questions
Even though MLGW is in some ways back where it started, the power provider RFP wasn’t all for naught, said the utility’s board chair.
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Even though MLGW is in some ways back where it started, the power provider RFP wasn’t all for naught, said the utility’s board chair.
After a lawyer for the Franklin L. Haney Co. spoke during Wednesday’s MLGW board meeting, the board took a brief, unplanned recess to consult its legal team.Related story:
The vote will determine whether MLGW signs a long-term contract with the Tennessee Valley Authority or continues with its current contract.
MLGW will continue its 80-year relationship with TVA through its current contract, but Commissioner Carl Person encouraged the board to work closely with the utility to seek an agreement that best suits Memphis and its ratepayers.
Rainfall is expected to continue through midnight, possibly into early Wednesday morning, and the National Weather Service said severe storms could produce tornadoes, damaging winds and large hail.
The Franklin L. Haney Co. said MLGW’s bid review process was biased toward TVA and it asked that its proposal be rescored.
Memphis Light, Gas and Water Division said a vendor error caused thousands of residents to receive an email stating their utility bill was $0.
The board vote could end a years-long process over who will be MLGW’s next power supplier.
Though the utility has no plans to increase rates this year — or next — costs are still expected to be 9% higher than last year.
An MLGW board member questioned the $299 million capital spend in the utility’s budget. Utility officials say the five-year, $1 billion plan was slowed by supply chain problems and labor problems.
For years, Flight Restaurant & Wine Bar didn’t ever close, even on Thanksgiving and Christmas. But the Downtown restaurant has been shuttered since Oct. 1 due to a water main break.
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 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.