Poor Tech and Bad Weather to Blame for Skyrocketing Utility Bills in Memphis, Tennessee

Unpredicted High Bills Shock Customers

Residents of Memphis and Shelby County are receiving unexpectedly high bills from Memphis Light, Gas and Water (MLGW), blaming poor technology and a cold snap in January. The public utility company has historically prided itself on offering the lowest rates in the nation, making these outrageous invoices a shock to customers.

A broken smart meter system is partly responsible for this unexpected increase, with some customers now receiving estimated bills until the issues are resolved. The effect of a week of bitterly cold weather in January has also significantly contributed to this surge in costs, with utility usage reportedly doubling during this period.

MLGW Retains Lowest Rates Despite High Bills

In a recent ‘One Memphis’ town hall meeting, Doug McGowen, CEO & President of MLGW emphasized that the utility still boasts the lowest rates in the nation. He further explained that over a span of 35 years, the rate increase has only been 4%, even with inflation reaching as high as 250%.

However, this assertion aligns poorly with the experiences of local dwellers, as many shared stories of significant financial burden. Dwier Jeffers, a retired senior citizen, reported receiving a bill for $804, expressing concern over affording the cost. Additionally, Sarah Moore, a working mother, shared that her bill of $1,066 was so high that she and her husband could not pay their children’s preschool tuition that month.

Broken Smart Meters Cause Billing Confusion

Beyond the weather-induced surge in consumption, technical issues have further complicated the situation. Faulty smart meters, which were intended to track utility use accurately, have failed, leading to a slew of customer complaints. The gas meters have been fixed, but the water meters are still awaiting repair, leading to an influx of estimated water bills.

The estimation is based on the previous year’s consumption for the respective month, providing a conservative estimate for the customers until the issue can be rectified. However, this method can lead to inaccuracies, causing unexpected inflation in bills when a correct reading is finally taken.

High Consumption During Cold Weather Spell Responsible for High Bills

With many customers still reeling from their punishing January bills, McGowen clarified that consumption during that week saw an increase of 87% in natural gas usage and 26% in electricity usage leading to high bills. He further emphasized that the utility is doing everything it can to keep rates as low as possible.

Customers facing issues with their bills are advised to reach out to MLGW within 30 days to rectify the situation. In an effort to address further grievances and provide clarity, MLGW will host two community workshops this week, providing customers with an opportunity to voice their concerns directly to the public-owned utility.