MLGW ratepayers will need gas rebate in the winter - WMC Action News 5 - Memphis, Tennessee

MLGW ratepayers will need gas rebate in the winter

You're getting a rebate from MLGW on your next bill and you may need it when winter comes.

In July, you'll get a credit on the gas portion of your MLGW bill. That's because of all that talk of MLGW over charging gas customers. But that gas credit will likely get eaten up this winter.

MLGW was charging all gas users a little extra to build up their cash so they could buy gas when it was cheap and save some money.

But now, they have to give that money back. MLGW will now have to borrow from a bank to buy the gas.

That means paying interest and the rest of us possibly paying more for gas.

"Natural gas is a commodity just like gasoline and as you know, the prices rise and fall at the pump. And the prices for natural gas rise and fall also," said Chris Stanley with MLGW.

That means on your winter gas bill you can expect some fluctuation. It's always been there but the cost could be more due to having to borrow money from the bank.

"The Purchase Gas Adjustment which is the difference between what it costs us to get gas and what we have built into our rates," added Stanley.

How much you pay will depend on the cost of natural gas at the time and of course the amount you use.

MLGW officials are clear to point out this is not a rate hike, it's a gas rate adjustment that you should start planning for now.

City leaders are working with MLGW to form a customers bill of rights and to make bills easier to read.


Click here to email George Brown.

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