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MLGW News Release
 
MLGW Board approves 2008 budget
October 18, 2007
The MLGW Board of Commissioners today approved a $1.7 billion operating budget for 2008. Highlights of the budget include a temporary one-year weather credit in the electric division and modest increases in natural gas and water rates. This is the first rate increase proposed by MLGW in four years. When combined, the typical residential total utility bill (1200 kWh of electricity, 52 ccf of gas and 10 ccf of water) will increase by only 1.9 percent. Customers can see how their usage compares to the typical customer by visiting the My Account Dashboard at www.mlgw.com. There, customers can find comprehensive tools to help them take control of their usage and costs.

The total electric, gas and water division revenue impacts from these approved rate actions are -3.1% (decrease), 6.8%, 15.0% respectively. For the typical residential customer the impacts will be -$4.06 per month (decrease) for electricity, a $5.61 per month increase for gas and a $1.71 per month increase for water. The total monthly impact for the typical customer will be an approximate $3.26 per month increase or 1.9%. The electric rate decrease reflects the warmer than normal weather over the past few years which has increased the sales of electricity. The increases in the gas and water divisions are necessary for MLGW to continue to meet operating expenses and to maintain quality, reliable services.

MLGW has traditionally had some of the lowest rates in the nation. A 2007 national survey of large metropolitan areas showed that MLGW is ranked sixth for the lowest combined residential utility bill. “These rate actions will have a minimal effect on MLGW’s national standing for low rates,” said Jerry Collins, Interim Chief Utility Officer at MLGW.

The budget will now go to the Memphis City Council for final approval. MLGW is scheduled to present the budget to the MLGW Committee on November 6th with final approval by City Council scheduled for November 20th.

MLGW is the largest three-service public power utility in the nation, serving more than 420,000 customers in Memphis and Shelby County. A 2007 national survey of large metropolitan areas showed that MLGW is ranked sixth for the lowest combined residential utility bill.