The board of Memphis Light, Gas and Water voted on Wednesday to explore other options than its current relationship with TVA.
The utility plans to issue a Request for Proposal to procure alternative energy sources for the Greater Memphis area.
The board’s decision follows a six-month Integrated Resource Planning process, which found that the utility could save over $130 million per year if it left TVA in favor of cheaper, greener energy. Other analyses, including those commissioned by Friends of the Earth, found that the utility could save up to $333 million per year by leaving TVA.
Herman Morris, Senior Advisor to Friends of the Earth (and former President and CEO of MLGW) and Michelle Chan, VP of Programs at Friends of the Earth, said, “Friends of the Earth applauds the MLGW board for liberating itself from TVA and embarking upon a more secure, cleaner and greener future for Memphis.
There are billions of dollars on the table in savings for MLGW customers, which are needed now, more than ever. We encourage the city council to show the same leadership and help alleviate this ’utility burden’ on the people of Memphis.”
The City Council is expected to vote on this matter in September.
The utility is TVA's largest customer.
A TVA spokesman said, "TVA respects and supports MLGW’s decision to pursue Request for Proposal’s (RFP’s) as it looks to its long-term energy supplier. We are excited about the opportunity to engage in the RFP process - put the facts on the table-– and prove that TVA in partnership with MLGW is the best option for the people of Memphis and Shelby County.
"When it comes to energy costs, Memphis starts from a position of strength. In partnership with TVA, MLGW today provides the third-lowest energy costs in the nation among its peers. TVA’s commitment is to keep energy costs stable over the next decade.
"We believe the people of Memphis deserve a partner that cares about serving their needs and addressing real issues like energy burden and the revitalization of the city’s core communities. TVA recently announced a plan to do just that…delivering $2 billion in value to the people of Memphis focused on investing in core communities, regional economic development, and addressing energy burden challenges for small businesses and residential customers. These are real, tangible investments, not hypothetical figures in a study. These are commitments TVA will deliver, not unbacked promises.
"TVA has been privileged and honored to serve the people of Memphis and Shelby County for more than 80 years. We look forward to continuing that partnership with the people of Memphis for decades to come."