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MLGW seeks $22 million in contract authority and explains new suburban appointments to board
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Summary
Memphis Light, Gas & Water requested roughly $22 million in added contract authority for vehicle replacements, infrastructure projects and charging stations and briefed council on a state law that will add two suburban-appointed voting members to the utility board.
Memphis Light, Gas & Water told the council committee on April 28 that it seeks roughly $22 million in additional contract authority, bringing previously approved spending to about $118 million. President McGowan outlined eight items on the fiscal consent agenda, including two 55‑foot bucket trucks ($550,000 total), a renewal for trash removal services with Republic Services ($461,000), a $12 million renewal with RMS Energy for substation rehabilitation, and engineering and inspection services for the Allen Pumping Station ($6 million).
McGowan said the North Service Center expansion remains a major capital project (roughly $85 million) and that environmental remediation and venting work are under way at the site near Jackson and Meagher ahead of construction. He also described a grant‑funded purchase of electric‑vehicle charging equipment—seven chargers paid primarily through a Fast Charge/Charge Across America program administered by the Tennessee Department of Environment and Conservation—with stations sited in Collierville and Midtown and expected to be operational within months.
On governance, McGowan described recently enacted state legislation that will convert two non‑voting advisory seats into two voting seats appointed by the mayors of Bartlett and Collierville. “When this law is enacted, you’ll have seven members instead of five,” he said, noting the change comes from the state and that MLGW management did not support altering the long‑standing city appointment process. McGowan said the city’s authority to appoint five members remains, and that staff will distribute language of the enacted bill once it is finalized.
Councilmembers asked technical questions about lead service‑line replacement plans and other items on the consent agenda. McGowan said MLGW is pursuing about 400 private‑side replacements this year, has completed roughly 144 to date, and estimates average private‑side replacement costs at $8,000–$10,000 per service line. He said state revolving loan funds with partial forgiveness are available but that use of ratepayer money for private‑side replacements will require additional council discussion.
The committee heard the presentation and followed up with requests for more detailed documentation; McGowan said staff would provide final legislation text and further reports on project timelines and funding before items are considered on the full council docket.
