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Data center electric service and ratepayer protections

At a glance

Based on auto-generated captions; names and details may be misheard.

  • What: how MLGW and TVA serve large power users such as data centers, who pays, and whether other customers' bills are affected.
  • Where it stands: at the 10/19/2026 hearing Madden (MLGW) said no customer's rates will rise because of data centers because they pay for their own infrastructure. TVA was not present; Spinosa plans to ask it to return.
  • Next: MLGW will propose a separate data center class for water charges at budget time in a couple of weeks. Members asked whether curtailment duties could be written into city law.

What was said

  • Loads over 5 megawatts get a system impact study by MLGW and TVA (months, up to a year), then a facility study; the customer pays for needed infrastructure. MLGW already served 14 data centers before xAI. Water and gas upgrades work the same way.
  • TVA's new data center rate was described as 1.52 million dollars per megawatt paid up front, said to cover about 30 percent of the need, with the rest billed over time.
  • Large users sign a power interruption plan and must reduce load when TVA or MLGW asks; if they do not, MLGW can cut them off. Backup power is behind the meter and MLGW cannot say what fuel it uses. The power threshold for the plan was not known.
  • Walker asked what renewable and storage options could cut data centers' gas and water use; the answer centered on the recycling plant and backup generation.

Planning & Zoning discussion (10/8/2026)

  • At the first hearing members noted electricity, gas and TVA are outside city authority; Spinosa said MLGW president McGowan is ready to appear. Alan Wade said a firm that brings its own power can be denied a permit for gas turbines and renewable power can be preferred, but the council cannot dictate contract terms; Walker asked about renewable targets.

Sources

Discussion time

About 15 minutes across 2 meetings (from transcript timestamps; approximate).

Meeting Minutes
2026-10-19 - Planning & Zoning 10
2026-10-08 - Planning & Zoning (2) 5

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