The Commercial Appeal

Why did Memphis water infrastruc­ture crumble?

Some on city council admit political pressure, lobbying from outside interests delayed vital decision-making

- Samuel Hardiman

The deep freeze that wreaked havoc on Memphis’ water system showed MLGW CEO J.T. Young has the benefit of foresight.

On Dec. 17, 2019, after years of urging Memphis City Council to approve rate hikes, the city-owned utility had just received a water rate hike and a gas rate hike, but failed to get an electric one, Young expressed worry about the delay.

“What I’m concerned about now is the more delays that we have now… puts more of our customers at risk in terms of their service and our equipment,” Young said. “That’s why we want to be able to move as quickly as we can to get that resolved.”

And, in 2021, unpreceden­ted, prolonged cold attacked MLGW’S

aged wells and pumping stations, infrastruc­ture that a 2019 outside audit had rated as on the verge of collapse. The freezing temperatur­es led to low water pressure, hundreds of broken pipes and mains, and a precaution­ary boil advisory that has lasted for days.

Last year, delayed more still by the COVID-19 pandemic, MLGW started fixing its infrastruc­ture, beginning a yearslong, hundreds of million-dollar process to bring the antiquated utility up to snuff. The investment did little to alleviate the water system's issues before the freeze, showing the politician­s' delays last decade, as Young had worried, might be costing their constituen­ts now.

The emergency could soon pass, and the water infrastruc­ture could soon get fixed. But the political constructi­on of Memphis' governance that led to the delay in infrastruc­ture spending will persist.

On Monday, some members of the City Council, the ones who vote on MLGW rate hikes, described the council, a group of elected representa­tives, as the best body to decide on rate hikes and big MLGW spending decisions, but also acknowledg­ed that the system is not immune to political pressure and lobbying from outside interests.

“A strength of that [governance] is that you have people who are directly accountabl­e to the ratepayers, and the voters of Memphis,” Councilman Martavius Jones said. “The weakness is that the Memphis City Council votes.”

Councilman Chase Carlisle said the council's political nature opens the door to the elected officials being influenced.

“Sometimes outside influence and heavy influences, whether it's lobbying or pressure, can sometimes, I think, cloud the judgment or cloud the decision-making matrix of the body, or individual­s on the body,” Carlisle said.

Lobbying impacted rate hike votes

The fall and winter of 2019-2020 is one pandemic and presidenti­al election ago, but, at that time, in the aftermath of the Memphis municipal elections, the hottest political issue in Memphis was electricit­y and spending money on infrastruc­ture.

In his second year on the job, Young, for the second time as MLGW CEO, was trying to get the City Council to pass rate hikes for all three of MLGW'S divisions. The council had said no the year before.

Part of the reason behind that defeat was, as with any tax or rate hike, the council's reluctance to add any more financial burden to Memphians' bills. In a city that struggles with poverty, raising rates is an anathema to many elected officials.

There was considerab­le outside interest in Memphis' rate hikes as well. Proponents for Memphis leaving the Tennessee Valley Authority, the federal power provider, opposed the rate hikes, fearing that it would erase the need for Memphis to examine its electricit­y alternativ­es.

Lobbyists for various groups who could benefit from Memphis leaving TVA worked the council ahead of the votes, meeting with members privately and then watching the vote from the audience in the council chamber.

MLGW leadership, knowing the electric rate hike was a political football, worked to split up the different rate hikes, and got approval for the gas and water hikes, legislativ­e permission that could have come a full year earlier, in late 2018. The electricit­y rate hike would pass in January 2020, after a new version of the city council had been sworn in.

Then Councilman-elect Carlisle watched the 2019 rate hike and political drama with unease. He noted that the rate hikes were delayed “over and over again” to apply pressure on MLGW leadership to leave TVA.

“It's a travesty that politics gets in the way of good policy decisions,” Carlisle said. He added he hopes his colleagues on the council vet the informatio­n they receive about leaving TVA, an issue that is still unresolved and stalled.

Outside interest in MLGW persists

In October, in the midst of heavy lobbying, the council voted down a contract for a company that would've bid out Memphis electricit­y supply. Some on the council said the contract should go to another firm, one that had pitched members of the City Council directly on wanting to do the bidding.

To Jones, that vote, and the larger influence campaign pushing Memphis to leave TVA, were political events he did not see coming.

“I never foresaw that things would get to get to where they are,” Jones said. “I think some of those alliances and influences are taking place.”

Jones, like Carlisle, expressed some concern over attempts to influence Memphis' decision-making process.

“I am not married to TVA. If we go through a process, and the process says it's in our best interest to [leave], I'm all for it. Where the politics of it comes in, is doing anything besides what would be a fair and independen­t process for us to assess what our current and future energy needs are,” Jones said.

Carlisle said, “I am agnostic to whether we leave TVA and seek alternate power, or stay with TVA, so long as when the decision is made, it is made with ... all the informatio­n necessary to make a fully informed decision that will ensure the best economics and reliabilit­y for our ratepayers.

...And, if that means leaving TVA, we better make sure that we fully understand any risk and or cost involved with seeking the savings associated with leaving our current provider.”

Water issue highlighte­d a lack of investment

The cold snap and snow were winter weather Memphis had not seen in decades. Without the successive storms and enduring cold, the city's aged water system might have held up, MLGW leadership said during multiple news conference­s this weekend.

Young, and Nick Newman, the utility's head of engineerin­g, acknowledg­ed this weekend that other local water systems, Germantown, Colliervil­le and Bartlett, endured the same cold but didn't have the same problems and that the age and condition of the water system played a significant role in the boil water advisory.

When asked about the city council's decision to delay rate hikes in the past, Young did not take the bait Sunday, telling Fox 13's Greg Coy that the utility was “blessed” to receive the rate hikes.

Young, as he often does, tiptoed around political controvers­y. He knows that he'll be back before the city council again. It does not make much sense for him to anger the people who vote on his organizati­on's budget.

 ?? ARIEL COBBERT/THE COMMERCIAL APPEAL ?? A volunteer places a case of drinking water into a resident’s hands at the Pink Palace Museum on Friday. A precaution­ary boil advisory was issued for MLGW customers Thursday.
ARIEL COBBERT/THE COMMERCIAL APPEAL A volunteer places a case of drinking water into a resident’s hands at the Pink Palace Museum on Friday. A precaution­ary boil advisory was issued for MLGW customers Thursday.
 ?? ARIEL COBBERT/THE COMMERCIAL APPEAL ?? MLGW employees repair the water main system on Chelsea Avenue on Saturday.
ARIEL COBBERT/THE COMMERCIAL APPEAL MLGW employees repair the water main system on Chelsea Avenue on Saturday.

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