MLGW president speaks to commercial real estate group

 

When it comes to switching power suppliers, MLGW President & CEO J.T. Young stressed that such a decision is “rare and monumental” for companies needing as much power as Memphis would demand.

 

   “It’s easy to talk about, but it’s relatively complicated to pull off so that it’s seamless to the customers,” Young said. That was one of several topics Young touched on during the recent March monthly luncheon of the Building Owners & Management Association of Memphis. BOMA is an industry-led group that educates and promotes the interests of the Memphis commercial real estate community.

 

   MLGW is the largest wholesale customer for electric power within the Tennessee Valley Authority making up about 11 percent of TVA’s total load. The city-owned utility is evaluating 24 bids and price quotes during its request for proposals. The bids are for transmission systems, some generation of electric power and renewable energy options. As with any MLGW bidding process, the names of the bidders have not been made public yet. They will be after the evaluation process is finished in about two months.

 

   Young said he was agnostic about whether MLGW goes or stays with TVA, but he added, “What I’m not agnostic about is making sure we have reliable, low-cost power that customers can rely on.”

 

   Regarding a recent push for more underground electrical lines, Young estimated that it would cost about $1.3 million per mile to convert existing overhead to underground lines. Of the 6,700 miles of distribution lines, MLGW has 40% underground.

 

   “Newer communities tend to be underground, but underground systems have their own set of challenges,” he said. “Underground lines don’t last as long as overhead lines, they’re hard to repair, and they’re much more costly.” Young also took questions from the audience among the 40 members.

 

   After the luncheon, BOMA president-elect Whitney Calhoun with CBRE said, “MLGW has been a great partner in keeping us involved and informed.”

 

   Harold Moss with Boyle Investment Co. agreed: “Everybody in this room is an MLGW customer. From talking about how rate increases are approved to information on the request for proposals bidding process, he hit on all the highlights we wanted.”

 

   Norm Kennel, a senior project manager for EnSafe, appreciated how Young emphasized that MLGW is keeping reliability at the forefront as it looks at power suppliers. “If you don’t have it (reliability), it doesn’t matter how cheap it is. Look at what happened in Texas,” Kennel said referring to last year’s severe ice storm that left thousands without power for weeks.