Written by: Dr. Ray Bauer

“21st Century Memphis or Bust!” is a customer-led advocacy group demanding that our publicly-owned utility be more transparent, reliable, and economically efficient. With MLGW’s proposed 12% electric rate hike, just on the tail of TVA’s 4.5% wholesale rate hike that began in October, we have basic accountability questions for MLGW management. We ask that Memphis City Council demand an independent forensic audit before agreeing to any new rate increases.

There is a persistent myth that the City Council is to blame for preventing MLGW from improving its infrastructure and reliability by denying its requests, but that needs to be countered with the truth: the City Council has approved rate increases and money for MLGW infrastructure improvements steadily since 2016. What our City Council representatives have not done as well as we think they could is make sure this money is correctly applied to where it was approved to be spent. This is a big part of the City Council’s job, but from what we have witnessed, budgetary items are often approved with far too much trust.

Out of a 13-member City Council, only 7 votes are needed to pass whatever request MLGW requires for approval. Considering there are current members that rarely move to table an item or vote No when MLGW Leadership fails to show specifically how previously approved, related money has been applied to infrastructure, the upcoming November 7th vote on the 12% electric rate increase included in the MLGW 2024 budget is all but guaranteed.

If you were to ask your four City Council representatives to provide examples of when they voted No on MLGW requests over the last 3 years because MLGW Leadership could not provide specifics, would they be able to provide any? Not likely.

Not in December 2019, when they approved a 27% water increase and a 2% gas increase. Not in January 2020, when they approved a 7.2% electric rate increase. Nor in the summer of 2020, when they agreed to issue $1.2 billion in cash and bonds to MLGW, of which about $800 million was just for electric infrastructure upgrades. Not in July 2021, when they approved $663,400 to ABC Professional Tree Services. Not in March 2022, when they agreed to raise MLGW’s expenditure threshold from $50,000 to $250,000, thereby decreasing public oversight. Not in December 2022, when they approved another $753,308 to ABC Professional Tree Services for more tree trimming. Nor in May 2023, when they approved another $1,052,702.16 for smart meters, on top of the original $240 million. Not in June 2023, when they approved MLGW’s request of $18,391,600 for a call center in New York City. Not this past July, when City Council approved $227,646,870 for ABC Professional, Kendall, and Lewis tree trimming services, without asking where the $97,419,024 million for the 2020-24 Asplundh tree trimming contract was. The latter was a contract where the servicer so severely underperformed in their obligations between 2020-22 that, according to President McGowen, it was a major factor in causing at least 60% of our recent outages. And not one City Council member voted No this past August when they approved $2,970,000 for more smart meter components, $769,948 to ABC Professional Tree Services for a different one-year contract, and $16,150,666 for a one-year paving contract, even though that is a million dollars more than what the entire City itself spends annually on paving.

Click here to see how your four council members voted on these resolutions

Now that the myth of a Disallowing City Council has been dispelled, if it bothers you that there is little reliability or transparency from our publicly-owned utility nor effort by the current City Council to hold MLGW Leadership accountable, you should ask your four representatives why they automatically approve whatever MLGW requests of them.

Keep in mind City Council is responsible for approving the appointment of MLGW’s Pres/CEO as well as its 11 vice-presidents’ salaries since they are over $180,000. Most of these MLGW leaders attend the two monthly City Council meetings, where they present their fiscal consent requests. They could be required to explain in detail where all this money has gone, including the money from the most recent rate increases, especially considering our services have deteriorated significantly over the past 6 years. Our group has asked MLGW Leadership on several occasions but has yet to receive specifics.

If you think the least City Council can do, before any new rate increases are considered, is provide oversight by mandating an independent forensic audit of MLGW expenditures since 2020 to make sure that our money was used wisely, it is crucial that you reach out to your four City Council members as soon as possible, since they will vote on the 12% electric rate increase this Tuesday, November 7th.

I recommend also copying their assistant, to make sure your message reaches them. Be sure to mention your address, so they know you are a constituent. Or call their assistant and leave them a voice message.

Click here is a list of their emails and phone numbers

And if you live outside of Memphis but are an MLGW customer, you still have indirect representation and should feel comfortable contacting any of the City Council members, since it is their job to govern Light, gas, and Water for the betterment of all of its ratepayers. If, however, you are comfortable with the current City Council continuing to give MLGW carte blanche, you can sit back and relax and allow that to continue to happen.

Dr. Ray Bauer
Co-Founder of 21 st Century Memphis or Bust! (the MLGW Watchdog Advocacy Group) ​Concerned customers pushing to bring MLGW into the 21st century by ​advocating for transparency​ from, accountability​ for, and better ​communication with our publicly-owned utility company. Contact email: 21stcenturymemphis@gmail.com