Memphis Light, Gas and Water approved a rate increase for gas and water during an Oct. 21 board meeting.
The increase, part of MLGW's proposed budget for 2027, would take place over a three-year period. The budget requires the approval of Memphis City Council to take effect.
MLGW customers can expect to see an increase of around $6 per month on their gas bills next year, scaling to an average increase of $18 per month by 2029. Water bills will increase by around $2.50 per month next year, scaling to an average of $10 per month by 2029.
"People are already struggling to pay their bills now," said Memphis resident Pamela Moses, who has run unsuccessfully for public office multiple times, during the public comment period. "Do you think we just have
indispensable money?"
The money generated from the rate increase will fund preventative maintenance, including replacing aging gas pipelines, upgrading regional water pumping stations and replacing lead service lines, according to an Oct. 19 email sent to MLGW customers.
"Over the last three years, we avoided rate adjustments by exhausting available reserve funds," the email read. "We must act now to secure the long-term financial health of our gas and water systems."
MLGW has so far suffered from a lack of rate increases, which has not allowed MLGW to keep pace with the increasing cost of goods and services, said MLGW president and CEO Doug McGowen. While MLGW has maintained some of the lowest rates in the country, it's among the worst in the country concerning electric reliability, he said.
This story will be updated with additional information.
Jack Armstrong covers breaking news and the environment for The Commercial Appeal. He can be reached at jack.armstrong@commercialappeal.com and followed on X @jca2902.
This article originally appeared on Memphis Commercial Appeal: MLGW approves 3-year rate hike for gas, water. What it will look like
