MLGW board approves water and gas rate hike for customers, data centers
by: Melissa Moon
MEMPHIS, Tenn. — The MLGW Board of Commissioners is asking the Memphis City Council to approve an 11% increase in water and gas rates for residential customers over three years beginning in 2027.
Commercial customers face a 20% increase, and data centers would pay 30% more.
“We are intentionally going higher for data centers. We have heard from the industry that they suggest they should pay more so others pay less,” said MLGW President and CEO Doug McGowen.
McGowen said the board of commissioners and city council asked the utility to delay any increases this year, and they complied with that request,
MLGW customers will see an increase of about $6 per month on their gas bills next year, scaling to an average total increase of $18 per month by 2029. Water bills will increase by $2.50 per month in 2027, scaling to an average total increase of $10 per month by 2029.
MLGW has capped increases at $3 for lower-usage customers.
The utility said the Gas Division’s last rate increase was 2% in 2022, and the Water Division’s last rate increase was 5% in 2022.
McGowen said the increases are needed to cover the cost of goods and services, meet higher paving and restoration standards from the city and state, and fund capital investments in its services.
Wednesday, the board passed a resolution directing the city council to convene as a rate-making body at a public hearing to consider and determine revisions to MLGW’s tariffs and rates.
MLGW said its rates remain the second lowest in the county.
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