MEMPHIS, Tenn. (WMC) - The recent ice storm the Mid-South experienced brought attention to MLGW expressing interest in leaving Tennessee Valley Authority (TVA) for another power source company.
TVA supplies power to MLGW.
“Our focus is on highly reliable low-cost electricity,” said TVA President Jeffrey Lyash.
Tuesday, Lyash painted a positive picture of the company’s future for Memphis City Council members.
“Our financial plan projects 10 years of flat rates into the future,” said Lyash.
Lyash also said a potential break with MLGW would not be a financial decision.
“Our comments have always been that decision is a risk decision and not a cost decision.”
Lyash referenced the recent winter blast that hit the Mid-South to showcase what he called TVA’s reliability saying that is more important than money.
“Within the last two years TVA has winterized our generating stations and raised our reserve margins on the system in the winter from 20% to 26% because of the clear risk presented by extreme weather events,” said Lyash.
Lyash also addressed Midcontinent Independent System Operator, also known as MISO.
Entergy customers in Arkansas and Mississippi are supplied power through MISO.
During February’s winter weather MISO asked some customers to conserve power and enacted rolling blackouts in both Arkansas and Mississippi, impacting 3,000 customers in Southaven.
MLGW CEO JT Young did not comment on dropping TVA in council, but he did share MLGW rates compared to other similar-sized MISO markets.
“At the end of the day our customers are paying rates that are very, very competitive and in some cases even lower than some within the MISO market,” said Young.