Memphis Light, Gas & Water (MLGW) rejected Tennessee Valley Authority’s (TVA) 20-year rolling contract Wednesday morning but will continue to be a TVA customer “for the foreseeable future.”
MLGW began evaluating its nearly 80-year relationship with TVA in 2018. The local utility company is TVA’s largest customer. Others (including Siemens) claimed MLGW could save between $130 million-$450 million each year if it left TVA.
MLGW is not leaving TVA, however. It will remain with TVA “for the foreseeable future,” according to an MLGW statement issued after the board’s decision Wednesday morning. But it can more freely keep its options to other power suppliers open after voting down the contract.
The board members ultimately rejected TVA’s now-standard, 20-year rolling contract, which most of its other local power companies have signed, based mostly on the length of the term. Board chairman Mitch Graves said, simply, the 20-year deal was “too long of an agreement.”
TVA accentuated the positives of the move Wednesday, highlighting the fact that MLGW will remain with them for now. TVA said the decision “is a reinforcement of the longstanding relationship with TVA in delivering affordable, reliable, and clean energy to the people and communities across Memphis and Shelby County.”
“We are proud of our partnership with MLGW, and we are excited to move forward,” TVA Chief External Relations Officer Jeannette Mills said in a statement. “We believe the people of Memphis and Shelby County deserve a partner that cares about serving their needs and addressing real issues like energy burden and revitalization of the city’s core communities. Our continued partnership with MLGW provides the best option for making this happen.”
Other groups, like the Southern Environmental Law Center, saw the decision a little differently.
“Big news out of Memphis as the city’s utility rejects a restrictive, never-ending power supply contract with TVA, looking for more renewable energy sources and lower bills for residents,” the group tweeted after the meeting.
Protect Our Aquifer tweeted this on Tuesday ahead of the board meeting:
The group said it was at the hearing Wednesday to speak against the contract.
Memphis Community Against the Pipeline (MCAP) called the move “another win for the people.”