A coalition-driven movement in 2022 to stop MLGW from signing a never-ending power supply contract with TVA that would have removed our local leverage to advocate for a more sustainable – and less aquifer-dependent – energy future.
For over 80 years, Memphis Light Gas and Water (MLGW) – Memphis’ only power provider – has purchased its electricity from the Tennessee Valley Authority (TVA). In 2018, MLGW began publicly considering power supply alternatives for a better financial and environmental deal. As TVA’s largest customer, MLGW leaders realized there may be a power provider that could act as a better community partner. All options were on the table: to leave TVA entirely, continue with their current 5-year contract, or sign a new never-ending contract with TVA.
In 2019, TVA began pressuring local power distributors – including MLGW – to sign new power supply contracts. These were contracts with 20-year terms that automatically renewed every year and included a punitive 20-year exit period if you did decide to leave. We called them "never-ending." They also placed harsh caps on the ability of local power companies to use renewable power (like solar) from non-TVA sources, locking them into TVA’s reliance on fossil fuels (like natural gas). They were bad deals that 17 small distributors in TN signed.
TVA is one of the biggest users of our aquifer, pumping up to 5 million gallons of water a day to cool their gas power plant (Learn more about TVA’s water use here). And, their handling of toxic coal ash in unlined pits at the old power plant has been at the cost of the environment and community. We were concerned that MLGW signing one of these never-ending contracts would result in increased power generation at their Allen Gas Plant which, in turn, would increase water usage onsite.
On August 17, 2020, the Southern Environmental Law Center (SELC) filed a lawsuit in federal court on behalf of Protect Our Aquifer, Energy Alabama, and Appalachian Voices to challenge TVA’s new never-ending power supply contracts. Our case argued, in short, that TVA’s use of the never-ending contracts violated the National Environmental Policy Act (NEPA), as they did not conduct the required environmental impact study nor allow for public comment on their decision to start using these contracts. We also argued that TVA was overstepping the authority granted to them in the TVA Act in these unfair contracts.
Meanwhile, MLGW was still weighing options. After an extensive Request for Proposals (RFP) process considering power supply proposals, on September 1st, 2022 MLGW President, J.T. Young recommended that they enter into a never-ending contract with TVA. Our fears that brought us to the federal courtroom were coming true.
In response, our coalition, including the TN Sierra Club, Memphis Community Against Pollution, and Memphis Has The Power, mobilized People Power to stop MLGW from signing this bad deal. For weeks, we urged the MLGW Board of Commissioners to reject the deal, as a never-ending contract would remove all bargaining power for Memphis forever. It would eliminate our ability to explore cheaper or cleaner energy options, and to negotiate Memphis-specific terms in the future. We urged MLGW to keep the current, 5-year contract with TVA, which gives us the ability to push back on bad policies, fight for programs that work for Memphis communities, and leave TVA if things don’t get better.
On December 7 2022, after hundreds of emails and comments, the MLGW Board of Commissioners unanimously rejected the never-ending contract. Board Chairman Mitch Graves stated the contract was “too long of an agreement.” They listened to our common sense arguments and decided to stay on our current, 5-year contract with TVA. Meanwhile, at the height of our advocacy with MLGW, we were in the federal courtroom facing off with TVA’s legal team. On February 1, 2023, the federal judge dismissed our case. He reasoned that we did not have legal standing and that TVA had acted within the law.
Today, we continue to advocate with MLGW leadership to utilize the leverage that they still have with TVA to push for renewable energy. Our 2022 campaign centered around keeping the option of “a better deal for Memphis.” Now, it’s time to find that better deal.
Access our archive of resources here.
Read about the POA v TVA lawsuit in this 2020 Complaint filed by SELC on behalf of POA, Energy Alabama, and Appalachian Voices.
You can also read the final decision issued in February 2023, and catch up on all of the legal documents in between in the archive.
The public comment letter that SELC submitted to the MLGW Board of Directors in September 2022 is another good resource about the issue.
And, you can watch Water Warriors in action at public meetings held in 2022 on our YouTube channel!
