Wednesday, November 21, 2012

Memphis City Council Approves MLGW’s 2013 Budget

The Memphis City Council approved MLGW's 2013 budget on Tuesday. The $1.8 billion budget includes changes to the pension and medical plans, no layoffs, a modest water rate increase, and a temporary gas rate decrease that more than offsets the water rate increase for the average city water customer. The budget also includes the expansion of MLGW’s smart meter project.

The water rate increase of 7.1 percent will increase the average city residential water customer’s bill by 98 cents per month ($11.76 per year). However, a temporary gas rate decrease from January-March 2013 would provide an average credit of approximately $13.01 per customer, eliminating any negative impact from the water rate increase. The rate adjustments will take effect on January 1, 2013.

Despite the water rate increase, MLGW President Jerry Collins Jr. said, “MLGW's outstanding quality water will continue to be among the cheapest water supplies in the nation.”

The 2013 MLGW budget also includes the following highlights:
  • No layoffs.
  • Proposed changes to MLGW’s pension plan that would save $2.1 million and to MLGW’s medical plans that would save another $207,000.
  • A minimal wage increase of 1.25 percent as negotiated with the International Brotherhood of Electric Workers (IBEW) Local 1288.
  • An expansion of MLGW's smart meter program to add an additional 60,000 meters.

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