MLGW announces decrease in electric rates for one year

WATCH: MLGW announces decrease in electric rates for one year

MEMPHIS, Tenn. — Memphis Light, Gas and Water has announced new electric rates beginning Oct. 29.

According to a release from the company, the new schedules are the result of a temporary 1-year 2.5 percent power cost decrease by the Tennessee Valley Authority.

The decrease in costs will save MLGW customers approximately $20 million, or 1.6 percent on their cumulative electric bills.

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According to the release, customers can expect to save $2 per month.

MLGW said in a statement:

“MLGW had the rate and debt plan approved (to be used to fund the service improvement plan) before the news of the TVA Pandemic Credit. Therefore, it was decided to refund this money to our customers since it was not a part of the initial funding plan and the fact the credit is TVA power cost related. This credit will help to offset the increases approved by the MLGW Board and Memphis City Council.”

The rate schedules can be viewed on MLGW’s website HERE.