Happy Birthday to Us!

MLGW turns 70 today!

The slogan found on the first MLGW logo said it all in terms of why the company was in business and who ran the place: “Public Service—Publicly Owned.” Most people are surprised to learn that MLGW is not that old. It was only born in 1939, even though organized utility service had been available for 87 years before MLGW came onto the scene.

When the Tennessee Valley Authority (TVA) was formed in 1933, many felt the opportunity had arrived for Memphis to obtain cheaper electric power. On November 6, 1934, Memphians voted 32,735 to 1,868 to authorize a bond issue to acquire or construct an electric distribution system. The unified Memphis Light and Water Division was formed in 1935 to oversee power and water systems, and a contract with TVA was signed in 1935.

Because the privately owned Memphis Power and Light already had an electric distribution system in place, the city requested MP&L to open formal negotiations to sell their properties to the city. After nearly three years of litigation and negotiations, a sale agreement for purchase of MP&L properties was finally reached on February 16, 1939. Under the provisions of the sale, the city received all electric distribution facilities, the MP&L administration building on Madison Avenue, a central shops facility, an electric service building, some other miscellaneous property, and all gas properties. A complete utility system for the price of $17,360,000, which included $2,110,000 paid by TVA.

Arguably, it was the best investment the city of Memphis ever made.

Photo by Jire Cakes