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MLGW seeks council approval for $67M consent package including $56M storm‑response contract
Summary
Memphis Light Gas & Water presented a $67 million consent agenda to the council, led by a five‑year $56 million contract extension for additional overhead line crews to speed storm restoration and support grid modernization; the utility also asked to continue equipment purchases, insurance and benefits contracts, and to approve two new executive salaries.
Memphis Light, Gas & Water on Tuesday told council committees it is seeking approval of a $67 million consent package that includes a five‑year, $56 million continuation of contracting with Davis H. Elliott for additional electric overhead line crews.
"Today we're presenting $67 million of expenditures that were recently approved by the board seeking your approval for those expenditures," MLGW President McGallen said. He said the $56 million contract will fund 17 additional overhead crews — described as local crews the utility will use while it completes a multi‑year grid modernization effort slated to finish around 2030.
The utility said the outside crews will provide surge capacity for storm restoration and reduce reliance on out‑of‑town contractors. The consent packet also included equipment replacements — notably a $369,000 15‑ton digger derrick — purchases of class‑8 chassis trucks, a $294,000 contribution to two DC fast‑charging stations (80% funded by a state grant), and a $1.8 million extension for professional cleaning services covering MLGW facilities.
McGallen also described a multi‑pronged approach to removing lead service lines. He told council members MLGW has removed thousands of historic lead lines the utility installed before 1950 and is asking the state for $10 million a year to help replace private‑side service lines where homeowners would otherwise bear the cost. He said a pilot and state funds will allow roughly 500 private‑side replacements this year and more if additional funds are secured.
On personnel items, MLGW requested approval to authorize the hire and salary for a director of billing and payment services and for a new vice president of corporate safety. McGallen said the safety post is new but appropriate given the utility’s large construction workforce and hazardous field work.
MLGW told the council it will continue to use market salary studies and start candidates at market midpoints. Some council members pressed about whether charter or council action would be required to change executive pay in the future; MLGW said any recommendation for charter or council action would be vetted by the utility board.
The council’s committees heard the presentation and signaled they would forward the consent items for a recommendation to the full council.
