Because the Historic Memphis City Council is so atrociously bad, never has there been a public discussion regarding MLGW’s massive bunker of public cash. And MLGW makes Council financial oversight easy, with their transparent and well-produced monthly financials website available.

The MLGW Council Committee is led by Councilors Spinosa as Chair and Councilor Walker as Vice-Chair. With multiple local needs, bunkers of public cash should not exist in Memphis, TN. But such bunkers exist at MLGW, Sports Authority and Memphis Health Education and Housing Facilities Board.

This blog deals exclusively with MLGW’s cash bunker and a winning trolley public-relations opportunity before MLGW. Recently, I originated the idea of MLGW sponsoring the electrical steel railed Trolley. Why keep such a great idea to myself? To that extent, in an act of civic philanthropy, that idea will now be laid at the feet of MLGW’s Vice President of Corporate Communications, Ursula Madden.

And get this, there is absolutely MLGW Electrcial Division funding available to sponsor the Trolley on a recurring annual basis.

A $30M+ annual savings from reduced cycle tree trimming costs should materialize in the FY26 MLGW budget. Given MLGW is now caught up with a significant accomplishment in tree trimming, a portion of those savings are likely materializing now. So how does the $30M savings materialize?

Leveraging the work of the Taxpayer Justice Institute (TJI), the $30M annual savings can be calculated and shown. The Institute submitted FOIAs to MLGW, Nashville Electric Service and Knoxville Utility Board regarding their FY24 cycle tree trimming costs. The per mile trimmed results are contained in the above table.

Should MLGW trim their approximate annual quota of 1,450 miles in FY26 at Knoxville’s per mile rate of $7,223 that would equate to $10.5M per year, down from $43.6M, and an Electrical Division $33.1M per year savings. $33.1M more than sufficiently funds this winning MLGW public relations and economic development Trolley sponsorship opportunity.

After all, the Trolley is all about economic development, and “economic development” is what MLGW’s CEO, Doug McGowen has said is a primary MLGW charge.

As of June 30, 2025, MLGW has the above excess cash balances over the recommended 45 days of cash on hand. These excess cash balances have been around for quite some time, without any public discussion.

Assuming that MLGW fully sponsors the Trolley on a capital and recurring basis, next, the Memphis City Council should ask MLGW to distribute $100M to City taxpayers, from the Gas balance sheet. This will still leave MLGW with $71M in excess cash on their Gas balance sheet. The $100M to the City should be earmarked for everything but Downtown.

Meanwhile, McGowen has been talking about constructing some type of unneeded Utility Command Center that costs $70M. After the $100M MLGW distribution, MLGW would still have the funding for command center construction.

At the same time, if constructed, in no way should the Command Center cost $70M. The public price points thrown around locally are beyond ridiculous. For example, I don’t believe the $220M for the Liberty Bowl, $550M for FedEx Forum or $100M for a Zoo elephant sanctuary. The first question is why $70M and what would the ROI for ratepayers be on a $70M Command Center?

As far as the $77M in excess cash on the Water balance sheet, MLGW would seem to have the money to construct a water recycling plant, as proposed by xAI. Should MLGW engage in this work, this would eliminate the need for Water rate increases stemming from lost MLGW water sales. Otherwise, current excess cash reserves themselves should delay future water rate increases.

MLGW has the capacity to serve local economic development needs, but will they? Or will they just sit there and bunker massive amounts of public cash? We shall see…..