MEMPHIS, Tenn. — The Memphis City Council could vote on proposed rate hikes for Memphis Light, Gas and Water customers.
During a council meeting in November, MLGW stated the rates need to be raised or they will simply run out of money.
"That's a big problem," Jerry Collins said. "It’s been a long long time since we’ve had a rate increase for gas and electric. We have some of the lowest utility rates in the country. It’s very important we as a community are responsible and how we make sure that we properly find the utility so we can give citizens the services they need."
The company wants to raise the water rate by one percent in 2018 to pay for aquifer research. But as for the gas and electric rates, there are several options the City Council can consider.
Electric Rate Options
- A) 3.5 percent increase in 2018 and 2019, generating $87.2 million
- B) 7.1 percent increase in 2018, generating $86.4 million
- C) 2.3 percent increase in 2018, 19, 20, generating $86.9 million
Gas Rate Options
- A) 4.5 increase in 2018 and 2019, generating $20.6 million
- B) 9.2 percent increase in 2018, generating $20.6 million
- C) 3.0 percent increase in 2018, 19, 20, generating $20.8 million
The company wants to use the millions generated from these two areas to cover rising costs.
On Tuesday, the City Council is also scheduled to hold its final vote on the removal of Confederate statues from city property.
Council members will also be discussing an ordinance to allow open containers on Main Street, as well as changing the application deadlines for parades and street races.