(November 4, 2008) - MLGW presented its 2009 budget to the MLGW committee of the Memphis City Council on Tuesday. The $2 billion budget does not call for any MLGW rate increases while increasing budgetary dollars for reliability enhancement projects and the expansion of energy conservation/weatherization programs.
"This budget reflects our commitment to do what is in the best interest of our customers," said MLGW President and CEO Jerry Collins Jr. "We are striving to keep rates steady for at least the next three years while at the same time ensuring that our customers receive the same reliable service that they have come to expect from us."
"Since MLGW does not drill for gas or generate electricity, we must buy from companies who do. This makes up 80 percent of our costs. While we have little control over the cost of power and fuel, MLGW is committed to focusing on controlling our costs. In addition, we are also committed to educating customers on how they can control their own energy costs in their home."
Budget highlights include the following:
- $1.3 million earmarked for the expansion of energy conservation/weatherization programs to help customers use less energy and thereby mitigate impacts of rising wholesale energy costs.
- $5.5 million for increased emphasis on environmental stewardship.
- $1.2 million reduction in overtime costs over 2008.
Nearly half of the capital budget used for improvement projects including:
-A new substation near St. Francis hospital;
-Increased reliability for customers in the Collierville area; and
-Seismic retrofit of the Sheahan Water Pumping Station.
The Council's MLGW committee approved the budget today. It is expected to go to the full council in two weeks.
MLGW is the largest three-service public power utility in the nation, serving more than 420,000 customers in Memphis and Shelby County.