MLGW to vote on rate increases Wednesday, including new water class for data centers
Memphis Light, Gas and Water commissioners are scheduled to vote on proposed water and gas rate increases. The proposal would create a new water customer class for data centers, with data centers facing a 30% water-rate increase compared with 12% for residential customers and 20% for commercial and industrial users.
Memphis Light, Gas and Water is considering a new water-rate structure that would classify data centers separately and charge them a 30% increase over three consecutive years beginning in 2027. Residential customers would face proposed increases of 12%, while commercial and industrial customers would see 20% increases.
MLGW President and CEO Doug McGowen said the broader rate increases are needed to address years of underfunding and improve reliability for existing customers, not to build infrastructure for data centers. Sarah Houston, executive director of Protect Our Aquifer, supported placing more of the burden on heavy industrial water users, while data center accountability advocate Richard Massey criticized the current structure for failing to encourage conservation.