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MLGW News Release
 
TVA announces plans to raise electricity prices
August 7, 2008
Tennessee Valley Authority President and CEO Tom Kilgore announced yesterday that the utility wholesaler plans to have a 10 to 20 percent increase in the Fuel Cost Adjustment (FCA), a portion of the rates TVA charges to 159 utility distributors in the Tennessee Valley, including MLGW. The increase will be passed on to TVA customers effective Oct. 1.

Kilgore said the price of fuels commonly used to make electricity are skyrocketing due to global supply and demand challenges. He also cited reduced low-cost hydro generation due to historic drought conditions as another reason for the increase.

The exact amount of the increase is still to be determined. Through its contract with TVA, MLGW is required to pass the rate increase through to customers. MLGW receives no additional revenue from this rate increase.

For its part, MLGW has stepped up its efforts to educate customers about how they can reduce their energy consumption.

  • The utility is currently running public service announcements about energy conservation on local radio, and will continue to promote energy education throughout the year.

  • Energy-saving tips can be found at www.mlgw.com

  • MLGW's online bill analysis tool allows customers to receive detailed reports about their energy usage.

  • Brochures and other literature are available online or by calling 544-MLGW (6549).
  • The utility's blog at www.mlgw.blogspot.com features in-depth discussion of conservation practices.

  • MLGW and TVA have teamed up to conduct EnergySmart Memphis conservation workshops for local neighborhood associations.

  • MLGW has increased its efforts to raise funds for the Plus-1 utility assistance program, which is administered by the Metropolitan Inter-Faith Association (MIFA) and is funded through the donations of one dollar or more on customers’ utility bills. More information can be found at www.plus1memphis.org or by calling 544-6549.

    Attached are documents from TVA explaining the rationale for the proposed increase in the FCA. Media inquires to TVA can be directed to their News Bureau at 865-632-6000.

    -Impacts of Rising Fuel Costs on TVA

    -Fuel Cost Pressures TVA is Facing