MEMPHIS — The biggest customer of the Tennessee Valley Authority appears to be sticking with TVA and may even adopt a longer-term agreement with the nation’s biggest public power utility.
After soliciting and considering other power suppliers, Memphis Light, Gas & Water estimates it would cost more money and take on more reliability risks if it severs its ties with TVA and gets its power from other wholesale electricity suppliers.
J.T. Young, president and CEO of the Memphis utility, told the utility’s board Thursday that MLGW should drop its 3-year-long study of other power purchase options and sign a 20-year contract with TVA, which has supplied Memphis electricity since 1939.
“TVA’s long-term partnership proposal demonstrates the greatest value and least risk for MLGW customers when compared to all other proposals,” Young said.
An energy consulting firm that estimated last year that Memphis could save up to $150 million with a switch to other suppliers now estimates that staying with TVA is the lowest cost provider for Memphis.