During the fall, Memphis Light, Gas and Water will raise their rates. For many University of Memphis students this means they will have to work harder to make ends meet.
“It cuts into money that I need to spend on other things, like books,” said Jenny Bryant, sophomore English major.
MLGW is the country’s largest three-service municipal utility with more than 400,000 customers in the Memphis and Shelby County area.
The rates will likely increase more than $5 a month.
The Tennessee Valley Authority is responsible for hikes or decreases on utilities. MLGW can neither approve nor reject a TVA decision.
Bryant and her roommate split their utility bill down the middle. Her share is $100. She said she considers that to be expensive.
“I’ll have to work more and study less,” said Bryant, who is a server at Outback Steakhouse. “It cuts into my academic time.”
Electrician Armando Gutierrez, who works for various hotel chains, said that he believes the hikes are fair.
“It takes a lot to be an electrician. There’s a lot that goes into it and the hikes are needed to keep the company running smoothly,” he said.
In light of recent scandals at MLGW, many have mixed feelings.
Gutierrez said that scandal is inevitable in big business.
“When you have a major company, its officials are bound to do things that are a little underhanded in order to satisfy their greed,” he said.
“I think there is a great deal of fraud at Memphis, Light, Gas and Water. I think that the increase is the lesser of two evils,” said Clifford Namowicz, auditing student.
He is not worried about the impending increase.
“We have disposable income. The raise won’t affect us,” Namowicz said. He said his bill is considerably low, and typically costs no more $135 a month.
Jenny Bryant said that she feels like this hike could have been prevented.
“It’s irritating, but typical. They are always spending money when they shouldn’t be,” she said.
Even though she is unhappy about the hike, Bryant said she has issues that are more pressing.
“I am more upset about not getting a grant than the light bill,” she said.
Despite the increase, the hike could have been worse. In 2003, MLGW spent $1.5 billion and prepaid TVA electricity for 15 years in order to hold down utility prices for its customers.
