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MLGW outlines $39.8 million plan for private 5G network to modernize electric grid; license deadline July 2028
Summary
Memphis Light, Gas & Water told a City Council MLGW committee it needs nearly $40 million to install radios and towers for a private LTE/5G network that will connect automated grid equipment, improve outage response and enable distributed energy management; the utility says the work must be built by July 2028 to meet an FCC license timetable.
Memphis Light, Gas & Water briefed the council’s MLGW Committee on May 6 about a multiyear grid‑modernization program that includes a private LTE/5G communications network necessary to link new automated equipment and systems.
MLGW President Doug McGowan described the proposal as the communications layer of a planned advanced distribution management system that would allow automatic fault detection, isolation and restoration and better management of distributed energy resources.
Nut Graf: MLGW said it already purchased an FCC license for LTE spectrum and now seeks to buy radios, towers and associated equipment so local distribution equipment can communicate. The utility reported a low‑mid bids result of $39.8 million plus a $4 million contingency and said the network must be built by July 2028 to comply with the license terms.
McGowan told the committee the work is central to the utility’s three‑part reliability plan — tree trimming, replacement of aging equipment and digital modernization — and that the communications network is needed to operate automatic switches, advanced meters and other smart‑grid devices. He said MLGW bought the FCC spectrum license earlier for about $27 million and that the current procurement covers towers, radios and back‑haul fiber to connect the network control nodes.
Details McGowan provided: the plan is for 34 tower sites (10 existing, 24 new) in phase 1 and an additional 18 sites in a phase 2 expansion; the 98% countywide coverage target is measured at 1 Mbps in the phase‑2 design; the project is part of a previously approved five‑year electric capital plan and MLGW staff said the higher bid price stays within that plan. McGowan said the license requires final build‑out by July 2028 and that the utility will seek the council’s consideration at an upcoming meeting after the MLGW board reviews the contract.
Committee members asked about air quality and whether on‑site generation (for customers or data center customers) could create pollution. McGowan said questions about generation and emissions fall to generation providers and regulators — TVA, the state permitting process and the U.S. Environmental Protection Agency — rather than MLGW, which operates the distribution grid. He told members the towers will largely be sited on MLGW‑owned substation property and will be monopole structures (about 100–190 feet tall, not the very large interstate towers) rather than large highway masts.
MLGW staff also reported progress on routine reliability work: tree‑trimming crews had completed roughly 1,428 miles in the current cycle and were tracking above plan. The committee did not vote on the communications procurement; MLGW said its board would consider contract awards and that it would seek council action next week for final approvals that the board recommends.
Ending: Committee members pressed for follow‑up materials and said they would review the full procurement and technical details at the next scheduled meeting; no council vote was taken at the committee briefing.
