MLGW rate increase (xAI context)

On bills now Base rate case before the Tennessee Public Utility Commission.

+$5a month

on a typical bill, as approved

As published by the utility or the commission.

Fileddate not published

Hearingheld or waived

Decisiondecided

On billsdate not published

Memphis Light, Gas and Water implemented the final 4 percent step of a 12 percent multi year rate increase approved by the Memphis City Council back in 2023, adding about 5 dollars a month to a typical residential bill starting in January 2026. This general increase is not billed as a data center charge, but it lands the same year xAI's Colossus supercomputer has become one of MLGW's largest customers, and MLGW has published data on xAI's usage after public concern about the facility's power and water draw.

What it means for your bill: MLGW is a municipal utility that buys its power from TVA, so its base rates are set by Memphis City Council rather than a state commission, and large customers like xAI are billed under MLGW's own commercial and industrial rate schedules, separate from residential rates.

Status: On bills now
Utility: Memphis Light, Gas and Water
Commission: Tennessee Public Utility Commission
Approved: 4% residential
Typical bill change: +$5.00 a month
Data center linked: Yes. The filing ties part of the cost or the tariff design to data center load.
Last checked: August 29, 2026

Sources

MLGW to Implement Final Installment of Previously Approved Rate Adjustment in January 2026, MLGW,
What a year's worth of xAI power bills tell us, Daily Memphian,

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