MLGW seeks approvals for major equipment purchases, launches drone inspection notices

Memphis Light, Gas & Water told City Council members on Oct. 7 that it plans roughly $67 million in purchases and multi‑year contracts intended to extend equipment life and boost reliability, and that it has started neighborhood drone inspections to identify infrastructure defects.

The utility described a two‑year, renewable contract (with up to three one‑year renewals) to install steel trusses around existing wooden distribution poles as an alternative to full pole replacement. The presenter said a truss costs roughly $750 compared with an estimated $7,500 to replace a pole, and that the work would extend pole life by about 20 years; MLGW said the contract would cover just under 10,000 poles. The presenter described the truss as a steel sleeve that is driven into the ground to reinforce the pole’s base, making it less likely to shear off in wind or from impact.

MLGW also described several other purchases: a one‑time $352,000 buy of fiber‑optic materials for the utility’s 65 substations, a $2.5 million contract for battery racks and chargers to serve roughly 25 substations, and a five‑year, $112 million procurement for up to 45 power transformers. The utility said the transformer package would cover replacement needs, planned substation expansions (including recent and planned work at Substation 83 near Collierville and Substation 29 near Bartlett), long‑range system growth and spares. MLGW noted transformers are long‑lead items with manufacturing lead times of two to three years.

Council members asked about public safety and placement. Councilman Warren asked whether the pole trusses make poles less likely to be knocked down by cars; MLGW staff said the trusses extend below grade and make the pole behave more like a steel pole in many crashes, reducing the chance the pole will be sheared off, and also increase resistance to high winds. Council discussion also noted that collisions with poles can still cause severe vehicle damage and injury.

On transformers, council members asked whether any of the purchases would serve a privately financed data center project mentioned during the meeting (referred to as XAI). MLGW staff said the utility’s transformer purchases do not include equipment for XAI; the data center has procured its own pieces and would deed required infrastructure back to MLGW if and when it becomes utility property.

MLGW staff described operational items including aerial patrol of natural‑gas transmission rights‑of‑way to meet federal and state regulatory requirements, recurring utility landscaping contracts, vendor payment processing at about 200 community payment locations (an annual cost reported at roughly $250,338, or about $0.60 per transaction), and rolling‑stock purchases including one‑ton service trucks. The presenter also requested council approval to set an annual salary of $127,279.80 for a supervisor of internal audit and described a ratified one‑year extension of workers compensation stop‑loss insurance covering 2026.

MLGW staff said the utility has begun a neighborhood drone inspection program to image poles, crossarms and substation equipment, run images through machine‑learning tools to detect defects, and prioritize repairs. MLGW said it mailed postcards to affected neighborhoods (citing recent work in Orange Mound and Castellia Heights) to explain that drones and crews will be identifiable by MLGW markings and that imagery is targeted to infrastructure (not homes). The utility reported prior drone work inspected roughly 12,000 poles and identified roughly 3,000 maintenance items in one neighborhood pilot.

What it means: The procurement packages are aimed at reducing replacement costs and accelerating equipment renewal; the transformer buys are intended to shorten average asset age and support both replacement and planned growth. The drone program is being used as a diagnostic tool to identify maintenance needs at scale. Council members requested follow‑up details on safety, neighborhood notices, and how purchased equipment relates to third‑party projects.

No formal council vote on the procurement packages was recorded in the portion of the transcript provided. Questions and responses recorded in the meeting transcript were made by MLGW staff and by council members including Councilman Warren, Councilwoman Cooper Sutton and Councilwoman Logan.

Provenance: first related remarks in transcript: “$67,000,000 of approvals for the year. The first item is part of a reliability improvement…”; last related remarks: “This is What are you finding? … We find a lot. This is in preparation.”