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MLGW seeks routine contract renewals and vehicle purchases while warning federal LIHEAP funding is at risk
Summary
Memphis Light, Gas & Water presented multiple spending items including IT, engineering and vehicle purchases and warned the council that federal LIHEAP energy‑assistance funding may be cut in FY2026, potentially affecting thousands of local customers.
Memphis Light, Gas & Water (MLGW) leaders briefed council committees on April 22 about a sizable consent agenda of contracts and equipment purchases and delivered a separate warning about potential cuts to federal energy‑assistance funding.
Consent agenda highlights: Doug McGowan, representing MLGW, summarized a batch of spending requests the utility was forwarding for committee approval. He said the board had already approved roughly $171 million in spending for the year and asked for an additional $6.3 million at that meeting. Items on the consent list included renewals and professional services (SCADA software support, IT cybersecurity modules, engineering contracts for lead service replacement and plant rehabilitation), and a series of vehicle and equipment purchases for system maintenance — from class‑7 bucket trucks to pickup trucks and service bodies. McGowan described several renewal contracts for network‑monitoring and cybersecurity tools that range in the low six‑figures annually, and a vehicle program that replaces aging fleet items.
LIHEAP warning: Separately, McGowan told the committee that the federal Low Income Home Energy Assistance Program (LIHEAP) — which supports utility payments for eligible households through Shelby County’s Community Services Agency — had seen only a partial 2025 allocation released so far and that the federal administration was proposing to stop LIHEAP funding for FY 2026. He said that reduction could affect tens of thousands of customers locally and millions nationally; McGowan noted that MLGW and local partners helped roughly 39,000 families in a typical year and cited historical LIHEAP totals the utility has distributed on behalf of customers (he cited roughly $16 million provided in 2024 and about $5 million in funds flowing in 2025). McGowan urged council members to be aware of the risk and said the utility and local partners were asking the federal delegation to restore LIHEAP funding.
Why it matters: LIHEAP reductions would mean fewer federal dollars available for Shelby County administration to help households with energy bills, increasing pressure on local assistance programs and utilities. Committee members asked for more detail on the consent agenda line items and on how MLGW tracks capital and operating budgets across electric, gas and water divisions.
Next steps: Several consent items require formal approval by the full council. McGowan said MLGW would continue to press the federal delegation on LIHEAP and that the utility will provide details to the council as any federal decisions are finalized.
