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MLGW News Release
TVA Board approves rate change effective October 1
August 20, 2008
The Tennessee Valley Authority (TVA) Board today approved a 17 percent increase in TVA's 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.

TVA also passed a three percent base rate increase, resulting in a combined impact to residential customers of approximately $18 per month for 1,300 kilowatt-hours (kWh). 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.

Earlier this month, Tennessee Valley Authority President and CEO Tom Kilgore said the price of fuels commonly used to make electricity is 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.

MLGW was the only distributor in the TVA system to speak against the base rate increase at today’s meeting, with MLGW President and CEO Jerry Collins Jr. urging TVA to "delay the proposed base rate increase until alternatives can be properly evaluated and deliberated with the distributor community." "Our customers labor under the strain of rising energy costs," he added.

To combat this potential monetary impact, MLGW has stepped up its efforts to educate customers about how they can reduce their energy consumption.
  • Energy-saving tips can be found at
  • 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 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 or by calling 544-6549.

    Media inquires to TVA can be directed to their News Bureau at 865-632-6000.

    Click here to read trascript of comments made by MLGW President & CEO Jerry Collins at the TVA's Board Meeting.

    MLGW is the largest three-service public power utility in the nation, serving more than 420,000 customers in Memphis and Shelby County.