Residential / Residential Rates

Memphis Light, Gas and Water is the nation's largest three-service municipal utility, serving more than 420,000 customers. Since 1939, MLGW has met the utility needs of Memphis and Shelby County residents by delivering reliable and affordable electricity, natural gas and water service. In fact, MLGW's rates are lower than those of many comparable cities.

MLGW will be updating the base cost of natural gas built into the Natural Gas Rate Tariffs for bills beginning with meter readings on August 30, 2012 to reflect current market trends in natural gas. Customers will see no effective increase or decrease on their bills and MLGW will not generate any additional revenue because of this change.

MLGW collects the base portion of Natural Gas costs through the rates shown on the Natural Gas Rate Tariffs. The remaining portion is collected through the Purchased Gas Adjustment (PGA). The PGA mechanism is used to adjust rates monthly to collect any differences between the  actual cost of Natural Gas that MLGW incurs and the base amount. As the market moves up and down, the PGA rate follows. The total Natural Gas cost collected through rates will remain the same.

Units of Measurement:
Units called kilowatt hours are used when billing electricity. To help give you an idea of how much a kilowatt hour is, it's equal to ten 100-watt light bulbs burning for one hour, and for our residential customers, it costs only about seven cents. Gas and water are each measured in units of 100 cubic feet, or ccf's. A ccf of water is equal to about 748 gallons, and it's quite a bargain, too; this amount will cost you about $1.37 in Memphis. One ccf of natural gas is sometimes called a "therm".

Current Schedule of Residential Rates


Service Schedule Effective Date Description
Electric RS September 29, 2017 Electric rate for all residential customers
  TVA FCA Varies Monthly TVA fuel cost and purchased power adjustment rider
  TOU September 29, 2017 Voluntary, optional Time-of-Use rate for residential customers with smart meters
Gas G1/G3 January 1, 2016 Gas rate for all residential customers
  PGA Varies Monthly Purchased Gas Adjustment Rider
  PGA Tariff December 26, 2007 Purchased Gas Adjustment Rider Tariff
Water (City) W1 January 31, 2018 Water rate for all residential customers inside city limits
Water (County) W2 | W51 January 31, 2018 Water rate for all residential customers outside city limits