MLGW's Eco-Friendly Electric Grid Project

Memphis will have a more environmentally friendly electric system upon completion of an agreement with the Environmental Protection Agency (EPA) to remove Polychlorinated biphenyl(PCBs) from its electric grid.

Inspections of MLGW in 2005 and 2006 noted discrepancies in the utility’s management of PCBs. As a result, MLGW made changes to resolve the identified issues. EPA and MLGW agreed to a settlement consisting of a $1.22 millionpenalty and a supplemental environmental project.

Phase one of this progressive project will replace an estimated 880 transformers as well as remove 2,859 large high-voltage PCB capacitors located inside substations. At the end of the 10-year project, MLGW’s electric grid will no longer contain regulated levels of PCBs. The cost of the updating, an estimated $10 million over three years, and is built into the utility’s capital budget, beginning in 2009.

“MLGW quickly took steps to resolve the issues when identified in 2005. We also talked with the EPA to find ways to ensure that our system was more environmentally friendly. This gives us the opportunity to not only meet but to far exceed current EPA requirements,” said Jerry Collins Jr., MLGW President and CEO.

This project was undertaken in connection with the settlement of an enforcement action taken by the U.S. Environmental Protection Agency for violations of Section 6(e) of TSCA, 15 U.S.C. § 2605.