MLGW outlines $19.4 million in purchases, tests decorative lighting at Front Street substation

Memphis Light Gas & Water officials on March 25 briefed the council on a consent-agenda package that would add roughly $19,380,000 in spending and described pilot lighting work at the Front Street substation.

The presentation, led by MLGW President Doug McGowan, said the new requests would bring total MLGW spending approved this year to about $120 million. The single largest line item in the package was $15 million for single-phase pad-mounted distribution transformers used in underground residential service, McGowan said. Other items included a $338,000, three‑year contract for water production well parts, $1.14 million for data-storage hardware replacement, $1.102 million for virtual-server storage, and $367,000 for 5,250 water‑meter registers.

Why it matters: MLGW said the purchases are aimed at replacing end‑of‑life equipment, sustaining service and restoring water‑production capacity without the higher cost of drilling new wells. The utility also noted one of the items — meter registers — follows a manufacturer replacement of failed components at no cost.

MLGW and council members also discussed lighting at the utility’s Front Street substation, a visible site near downtown hotels and the convention center. Vice Chairwoman Adam Swearidge Washington raised requests from residents and merchants for improved decorative lighting to boost safety and downtown appeal. McGowan said crews had re‑energized several ornamental fixtures and replaced bulbs where possible and that some wiring and safety work remains to get all fixtures active. He described a two‑step approach: (1) confirm and restore power to existing decorative and ground‑level lighting and (2) develop optional decorative and color schemes for presentation to council and neighborhood stakeholders.

Quotes and clarifications - “So far this year you have approved $100,000,000 of spending for MLGW. Today we're asking for another 19,380,000,” MLGW President Doug McGowan said, summarizing the year‑to‑date total and the requests on the table. - On wells: MLGW told the council its aim is to rebuild about four wells per year and to drill four new wells per year when needed; McGowan said a new well costs roughly $2 million all‑in. - On Front Street lighting: McGowan said crews “reenergized the lights, tuned them up, replaced as many bulbs as they could, and got them on” as a first step to evaluate decorative lighting options.

Details from the consent package (figures presented by MLGW) - TVA Community Care match: TVA offered $227,000 for utility assistance that requires a city match of $227,000 (total additional assistance about $454,000). - Pad‑mounted distribution transformers: $15,000,000 (stock to replace units hit by vehicles and to serve new subdivisions over multiple years). - Water‑production well parts: $338,000 (three‑year contract to rebuild or repair existing production wells, instead of drilling new wells at about $2,000,000 each). - Data domain (storage) hardware replacement: $1,140,000 over five years (replace end‑of‑life storage modules). - Virtual environment storage replacement: $1,102,000 over five years (support ~1,100 virtual users). - Water‑meter registers: $367,000 to buy ~5,250 registers (~$69 each) to keep stock for future failures and warranty returns. - Vehicle purchases: four 1‑ton crew‑cab trucks and six single‑cab service‑body trucks (the package described fleet replacement of end‑of‑life vehicles; retirements will go to auction). - Claims‑management software license: $2,500 (multi‑year contract through 2026 for the claims office).

Next steps: MLGW said it will return formal consent items for council approval in the normal consent‑agenda process. Separately, staff will bring options and cost estimates for any decorative lighting upgrades at the Front Street substation once crews finish re‑energizing and assessing existing fixtures.

Ending: Council members thanked MLGW for the update and asked to be notified when the utility has a lighting package — including cost estimates and aesthetic options — to consider alongside public‑safety and neighborhood feedback.