Press Mention La Prensa Latina June 25, 2020
Topical Mention
TVA Says MLGW Electric Bills Could Rise 20% if Utility Switches to New Supplier
In this mention
TVA disputes MLGW's Integrated Resource Plan, claiming that switching from TVA to MISO as an electricity supplier would cost MLGW an additional $261 million annually and $8 billion in infrastructure, rather than the $90–$122 million in annual savings MLGW projects. TVA emphasizes its nearly 55% carbon-free supply and lower retail rates compared to 70% of the nation. MLGW President JT Young indicated a decision on remaining with or leaving TVA was expected in July or August 2020.
Full transcript
MEMPHIS, TN (WREG) — The TVA says MLGW electric bills could rise by more than 20% if the Memphis utility drops TVA as its supplier.
The agency's response comes a few weeks after MLGW released a study that said essentially the opposite, claiming it could save millions of dollars by switching to a different provider.
According to the Integrated Resource Plan released May 29, MLGW projects savings of $90 to $122 million per year over 20 years from exiting TVA and joining with power supplier Midcontinent Independent System Operator (MISO).
But TVA says that, rather than saving money, switching suppliers would actually cost MLGW an added $261 million annually and cost $8 billion to build new infrastructure. They say MLGW's study is flawed, overstating TVA rates and carbon emissions.
TVA, which has supplied power to MLGW for more than 80 years, says it provides retail rates that are lower than 70 percent of the nation and has invested $72 million in Memphis-area infrastructure.
The company's supply is nearly 55% carbon-free, and has more renewable energy than MISO or any Southeastern U.S. utility, TVA said.
MLGW President JT Young said last month that he anticipated the utility would make a decision on staying or leaving in July or August.
Español:
MEMPHIS, TN (LPL/WREG) — TVA dice que las facturas de electricidad de MLGW podrían aumentar en más del 20% si la empresa de servicios públicos de Memphis deja a TVA como su proveedor.
La respuesta de la agencia se produce unas semanas después de que MLGW publicara un estudio que decía esencialmente lo contrario, alegando que podría ahorrar millones de dólares al cambiar a un proveedor diferente.
De acuerdo con el Plan de Recursos Integrados publicado el 29 de mayo, MLGW proyecta ahorros de $90 a $ 122 millones por año durante 20 años al prescindir de los servicios de TVA y unirse al proveedor de energía Operador de Sistema Independiente Midcontinent (MISO).
Pero TVA dice que, en lugar de ahorrar dinero, cambiar de proveedor realmente le costaría a MLGW $261 millones adicionales anualmente y $8 mil millones para construir una nueva infraestructura. Dicen que el estudio de MLGW es defectuoso, exagerando las tasas de TVA y las emisiones de carbono.
TVA, que ha suministrado energía a MLGW durante más de 80 años, dice que ofrece tarifas minoristas que son inferiores al 70 por ciento de la nación y ha invertido $ 72 millones en infraestructura del área de Memphis.
El suministro de la compañía es casi un 55% libre de carbono y tiene más energía renovable que MISO o cualquier empresa de servicios públicos del sudeste del país, dijo TVA.
El presidente de MLGW, JT Young, dijo el mes pasado que anticipaba que la empresa tomaría una decisión de quedarse o irse en julio o agosto.