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MLGW reviews 2026 operating and capital consent items, highlights pipeline moves and metering upgrades
Summary
MLGW officials briefed council committees on a slate of consent items for the utilitys 2026 operating and capital budgets, including pipeline-capacity contract shifts that McGowan said will save roughly $26 million, routine meter-module replacements, fleet and software contracts, and a $2 million drawdown for city street-cut permits.
Memphis Light, Gas and Water (MLGW) presented a package of consenting items tied to its proposed 2026 operating and capital budgets, describing energy-contract reallocations, routine water and meter equipment replacements, software renewals and fleet purchases.
MLGW President Doug McGowan told the council the budget before them reflects a small, negotiated change — about 0.2% of the $2.6 billion plan — following talks with the union, and that the consent agenda packages dozens of routine purchases and multi-year pipeline-capacity agreements. "We told you that that was going to be a 0.2% change in the overall budget," McGowan said during his overview, describing a roughly $1,000,000 movement in the overall plan.
Why it matters: McGowan framed the pipeline contract moves as a cost-avoidance effort. He said some existing pipeline contracts were approaching renewal at higher prices and MLGW is reallocating capacity to alternative pipelines, which the utility estimates will save about $26 million compared with staying on the expiring terms. For example, the utility described a five-year capacity contract with a trunk line and a winter-capacity contract with Texas Gas Transmission; an amendment with Texas Gas was presented as carrying significant winter and summer MMBTU volumes.
Key items in the consent packet included: gatekeeper devices that relay meter data to MLGWs data center; a cashiering-system extension; software to automate code migration into Oracle; handheld meter-reading software to support about 65,000 meters that remain manually read; purchases of water and gas meters and module/register replacements; a $2,004,940 purchase of 15,000 water meter modules and an analogous Badger registers order; a $987,000 annual tires contract that includes removal and recycling; and fleet-safety and tracking expansion via Samsara cameras and GPS. McGowan also detailed water-system projects such as aerator-screen and filter-building roof work and noted a $2,000,000 drawdown agreement with the city engineer to cover routine street-cut permit fees rather than billing per cut.
Council members asked about operational and workforce impacts. Councilwoman Pearl Walker pressed whether expanded automation and meter modules would reduce headcount for handheld meter readers; McGowan said the utility expects ongoing manual verification needs and does not anticipate layoffs tied to the rollout. He described the remote monitoring of LED fixtures as reducing work orders from about 1,500 historically to roughly 300 under the new system.
Whats next: The MLGW consent items were presented for council review under the committee process and will proceed to the full council as scheduled on the meeting calendar for final action; the presentation closed with the utility inviting follow-up technical questions from council members.
Representative quote: "These will be between 2 year and 5 year extensions on these contracts... the byproduct of these extensions will be that we'll save about $26,000,000," McGowan said during the budget-consent review.
Ending: Council members praised community engagement work associated with recent projects and asked for a follow-up on specific items (for example, the LED performance dashboard and the drawdown reconciliation) as the consent packet moves toward final council consideration.
