TVA offers 100 jobs, $135M to boost urban neighborhoods
Authority seeks to buy MLGW’S electric transmission system
In its latest effort to keep Memphis, Light, Gas and Water in the fold, the Tennessee Valley Authority is offering to roughly double its employee headcount in Memphis and spend $135 million over a decade on energy efficiency and urban revitalization.
Jeff Lyash, TVA’S CEO, gave the pitch to the Memphis City Council, the likely final arbiter of any power supply decision, during its meeting Tuesday. TVA is also offering to buy MLGW’S electric transmission system for about $400 million with about $100 million up front.
Lyash also said TVA could also invest $135 million over 10 years in revitalizing urban neighborhoods and improving energy efficiency. Memphis has among the highest energy burdens in the country, which is largely due to the population’s income and the amount of old homes within Memphis city limits.
And, as Lyash told The Commercial Appeal in late June, TVA could expedite removing the coal ash at the Old Allen Fossil Plant so it could sell the land to Memphis for a slack harbor port. Those proposed investments would come to Memphis regardless of how long of a contract it signed with TVA whether it was the 20-year offer TVA wants Memphis to sign, or Memphis continuing with its current contract.
The TVA CEO — who has spent most of his yearplus on the job pitching Memphis — also acknowledged once again that Memphis has not always been top of mind for the federal power provider.
“There are gaps where we have not delivered for Memphis,” Lyash said.
In a later interview, Lyash pitched the investments in Memphis as money that would pay a “dividend” to the region, though he conceded that if Memphis leaves TVA, it would likely have to add jobs at MLGW.
“MLGW is going to have to add people if they build ... Yes, they’re going to have to add a significant number of people to the organization and that’s jobs. But it comes at a very large cost. Those jobs take huge investment and lots of risk to produce. Whereas TVA building a corporate headquarters here or the construction of a port adds a lot of jobs without the ... ongoing cost,” Lyash said.
Lyash’s presentation came a day after the public comment period for MLGW’S integrated resource plan — its power supply study. That study could lead to the utility going out for bids on its power supply — asking the private sector how much it would cost to supply Memphis with power for the next 20 years.
After Lyash spoke to the council, several climate and community activists addressed media outside Memphis City Hall. All the groups gathered — the Southern Alliance for Clean Energy, Memphis has the Power and the Sierra Club — are opposed to remaining within TVA.
Pearl Walker, part of the grassroots organization Memphis has the Power, called on city leadership to pursue an energy option that would help reduce the energy burden for Memphians living in poverty.
The Sierra Club, led by Dennis Lynch, said the energy burden needs to change and he noted the changes underway in the renewable energy marketplace, noting that, in his opinion, the MLGW integrated resource plan discounted the availability of that power, particularly solar.
“Our priority is that the people and businesses of Shelby County have a sustainable and secure and cost-effective, clean, renewable energy. That means more solar energy and wind power,” Lynch said.