Memphis Light, Gas & Water is gearing up for a massive battery play that could reshape how Shelby County keeps the lights on and the bills in check. Utility leaders say a new countywide battery storage network could cut pricey wholesale power purchases and help keep electric rates steady well into the next decade.
The idea is simple enough, even if the hardware is anything but. MLGW wants large-scale batteries stationed at key substations around the county, ready to kick in when demand spikes and wholesale prices jump.
What’s Being Proposed
MLGW outlined a plan to install 125 megawatts of battery storage spread across nine substations in Shelby County. The systems would quietly charge up overnight when power is cheaper, then discharge during peak hours to reduce what the utility has to buy from the Tennessee Valley Authority at premium prices.
Locations floated by officials include Cordova, Collierville, Whitehaven and North Memphis, according to Action News 5. It is a far cry from a backup battery in your hallway closet.
Project Partners And Funding
Regional developer Seven States Power, which is leading the broader Energy Express initiative, is lining up the pieces behind the scenes. The MLGW portion is expected to account for roughly 100 megawatts of a 220-megawatt rollout across Tennessee, supported by about $439 million in zero-interest loans and grants from USDA’s Rural Utilities Service.
Seven States Power says construction is scheduled to start in 2027, with a goal of having the full system up and running by December 2028.
What City Leaders Were Told
Speaking to the Memphis City Council, MLGW President Doug McGowen framed the storage push as a direct play to keep customer bills from climbing.
He said the strategy is “designed to push rates downward, down, not up,” and MLGW told council members it does not expect an electric rate increase until after 2030, according to Action News 5.
How This Fits With MLGW’s Earlier Plans
This battery push did not come out of nowhere. In March 2025, MLGW issued a request for proposals seeking roughly 100 megawatts of solar generation paired with about 80 megawatts of utility-scale battery storage, along with smaller distribution-level projects.
According to MLGW, that RFP let vendors pitch either utility-owned projects or third-party power purchase deals as the utility began testing the waters on local generation and storage.
Benefits And Outstanding Questions
Seven States estimates the combined battery installations would support power needs for roughly 12,000 homes and create construction jobs along the way. The setup is also expected to limit MLGW’s exposure to the most expensive peak market purchases.
But some big pieces still have to fall into place. Siting, permitting and contract details have not been finalized, and the partners say they plan public outreach and technical reviews before any shovels hit the ground, as outlined by Seven States Power.
Next steps include more detailed technical studies, regulatory sign-offs, and public briefings before contracts are locked in and crews mobilize in 2027. If the schedule holds, the batteries would be online by December 2028, giving MLGW a new tool to shave peak costs and put continued downward pressure on rates across Shelby County.
