The utility company in Memphis said Wednesday it has rejected a 20-year contract with the Tennessee Valley Authority but will remain the power provider’s largest customer for the “foreseeable future.”
Memphis Light, Gas and Water’s Board of Commissioners unanimously voted to turn down the contract offered by TVA, which provides power to local distributors in its seven-state region. Board Chairman Mitch Graves stated the contract was “too long of an agreement.”
MLGW will remain in its current five-year rolling contract with TVA, a deal that automatically renews unless the Memphis utility opts to cancel it, TVA spokesman Scott Brooks said. The Memphis utility will have to give TVA a notice of five years if it intends to end their partnership of more than 80 years, Brooks said.