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Commercial
Commercial : DOING BUSINESS WITH US : NEW CONSTRUCTION

Connection Process | General Power Service Agreement | Load Growth Credit | Tax Exemption | Security Deposit

If you are constructing a new facility, it is extremely important to use qualified professionals to work with MLGW to ensure efficient, cost effective construction. Utility construction is coordinated through MLGW's Customer Engineering department which has offices at each of our four Service Centers.

The utility service connection process for new construction is divided into six steps:

1. Obtain Site Approval
Contact the Memphis and Shelby County Office of Planning and Development (901-385-5075) to ensure that your site has been zoned for the proposed commercial use. At this time, you will also want to contact the appropriate Code Enforcement Agency regarding permits and inspections.

2. Obtain Facility Address
Contact MLGW's Address Assignment department (901-528-4628) to have an address assigned to your property. MLGW is the only entity which can assign addresses in Memphis and Shelby County.

3. Initiate Work Request
Contact MLGW's Builder Services Center at 367-3343 to initiate the request-for-service process. You will need to submit a set of plans for the new facility and provide a contact name for the construction phase as well as a contact name for monthly operations. (You also may request temporary power, if needed, to accommodate construction.)

4. Provide Load Breakdown
Contact MLGW's Customer Engineering staff at the appropriate Service Center regarding the technical specifications of your utility service needs. If you are working with a contractor, that person can handle this step. The accuracy of this data is extremely important. Over-estimates will result in higher than necessary monthly costs; under-estimates will restrict the amount of energy supplied to your facility.

5. Assist Design Process
Once MLGW has all the above information, the utility design process begins. You or your designated representative will be contacted during this stage to verify building needs and pay any construction contribution costs. (The Customer Engineering Service Expediter at the appropriate MLGW Service Center can provide project status during this pre-construction phase.) You also will need to sign utility service documents, including a General Power Service Agreement. Special tax exemption and load growth credit programs are available for eligible businesses and should be explored now. Depending on your credit history, you may be required to provide a security deposit for your account.

6. Build, Receive Inspections and Get Utilities
The appropriate Code Enforcement Agency will make various inspections throughout the construction process and must make a final inspection before MLGW can set any meters and provide utilities. (The appropriate Planner/Coordinator schedules utility construction; MLGW's Service Expediter tracks the status of inspections performed by code enforcement agencies.)

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General Power Service Agreement
All customers are required to sign a General Power Service Agreement which identifies the customer and outlines contract conditions. Depending on utility usage levels, you also may be required to sign Electricity and/or Natural Gas Service Agreements. These documents ensure that sufficient energy is provided for your operation and establish the minimum monthly bill for utilities at your facility. If applying for service by phone, the form(s) will be mailed for your signature. If applying in person, you can complete the form(s) at that time.

Load Growth Credit
The Enhanced Load Growth Credit (EGC) program is designed to provide demand billing credits for qualified new and expanding commercial and industrial customers on general power or time-of-day contracts. Offered by MLGW and the Tennessee Valley Authority, the load growth program awards limited credits of $6.00 per kW for eligible electric demand loads.

New and expanding companies eligible for the EGC program include those categorized as a Standard Industrial Classification (SIC) Code Customer, an All-Electric Customer or other Qualifying Customer.

An “SIC Customer” is defined as a new or expanding customer with a contract demand of at least 100kW whose primary business operation is described by one of the following two-digit SIC categories:

-Mining			10-14
-Manufacturing		20-39
-Railroad transportation	40
-Motor freight/warehousing	42
-Water transportation           44
-Air transportation		45

An “All-Electric Customer” is defined as a new or expanding all-electric customer with a contract demand of at least 250 kW where: (a) space conditioning is accomplished by an all-electric HVAC system and (b) at least 50 percent of the interior floor space is heated and cooled.

The “Other Qualifying Customer” is defined as an existing customer who is expanding and adding at least a 250 kW load for space heating, cooling, water heating or cooking.

To qualify for the credit, customers must sign a participation agreement and a power supply contract before new service is provided. To determine if your company is eligible and to learn about additional provisions to the Enhanced Load Growth Credit program, contact the Commercial Resource Center.

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Tax Exemption

MLGW offers sales tax exemption through the State of Tennessee for qualified religious and non-profit organizations and a reduced or exempt tax rate for manufacturers. If you are an eligible religious or non-profit organization, provide a copy of your completed Tennessee Department of Revenue “Certificate of Exemption” at the time of service request. If you are an eligible manufacturing operation, provide a copy of your completed Tennessee Department of Revenue “Industrial Machinery Authorization Exemption Certificate” to receive the appropriate tax rate.

The tax form must include the same business name and address as the location for which you are requesting utility service. If the information is different, you will need to request a new tax certificate from the state and send it to MLGW before the tax exemption can be applied to your utility account. For information, call the State of Tennessee Sales Tax Department at 1-800-342-1003.

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Security Deposit
Based on your company’s credit history and financial health, you may be required to pay a security deposit which is typically refunded after three years of good payment history. The security deposit is a separate fee from any construction costs you may pay.

There are several options you may choose in lieu of posting a cash security deposit. Options include a guarantor, indemnity bond, certificate of deposit, bank letter of credit and waiver based on findings from a certified, audited financial statement. For information, contact MLGW’s Collections department at 901-528-4307.



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