MEMPHIS, Tenn. (WMC) - A big question is looming for MLGW and it will impact how much you pay for your electricity.
The utility will now consider if it should get its power from a different source.
Stephen Smith with the Southern Alliance for Clean Energy calls the move a potential game changer, applauding MLGW’s decision to consider other electric suppliers other than the Tennessee Valley Authority.
Memphis’ 400,000 customers is TVA’s biggest contract, but Smith says shopping around will save customers big bucks.
“What’s happened is there are lots of technologies and providers out there than can actually provide some of these electric services cheaper. Right now everything is bundled into this contract with TVA,” said Smith.
Studies show millions of dollars of savings.
Smith says there are also cleaner energy options available that would be better for the environment, helping with overall pollution and climate change.
However, MLGW CEO J.T. Young says TVA is still a viable option.
“TVA has approached us with a contract that we are considering, and are continuing to consider that throughout this process,” said Young.
A TVA spokesperson told WMC in part:
“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.”
TVA says MLGW would keep saving money by staying with them and stable electric rates have made MLGW‘s rates the sixth lowest of the country’s 100 biggest utilities.
Smith says after more than eight decades with the same provider, it’s time to test the waters.
“This allows MLGW to move into the 21st century, controlling their own destiny, bringing more value to their customers and doing it in a cleaner way,” said Smith.
MLGW is scheduled to choose an electricity provider by the end of October.