Memphis Light, Gas and Water will implement a 4% rate increase in January 2026, marking the final installment of the 12% multi-year rate adjustment approved by the Memphis City Council in 2023. This phased plan was designed to support essential infrastructure and reliability upgrades while spreading out the impact to customers over three years.

For the average residential customer, the 2026 adjustment is expected to increase utility bills by approximately $5 per month.

The final 4% installment will help fund ongoing improvements to MLGW’s electric, gas and water systems, including replacement of aging equipment, enhanced grid resilience and upgrades to customer service technology.

President and CEO Doug McGowen noted that the utility remains committed to balancing reliability needs with affordability. “This final installment completes the responsible, phased plan approved in 2023 to strengthen our systems and improve reliability for all customers,” McGowen said. “We understand that any increase matters to our customers, and we remain focused on affordability. These investments are necessary to deliver safer, more reliable service and to modernize our infrastructure for decades to come.”

The rate adjustment will appear on customer bills issued after January 1, 2026. Customers who need assistance are encouraged to explore MLGW’s payment plans, budget billing options and energy-saving programs at mlgw.com/utilityassistance

Memphis Light, Gas and Water is the largest three-service public power utility in the nation, serving the residents of Memphis and Shelby County, Tennessee since 1939. MLGW consistently provides customers with rates that are amongst the lowest in the nation and stewards a water supply from artesian wells that is minimally treated. Actively engaged in promoting the prosperity of Memphis and Shelby County, MLGW supports the seven local chambers in its service area and makes doing business with local, minority- and women-owned business a priority. Deeply rooted in the community, its employees generously donate time and money in support of bettering the Greater Memphis area.