Memphis Light, Gas and Water Division Capital Improvement Plan (CIP) Alert

FirmoGraphs tracks capital improvement plans so AEC, infrastructure, and business development teams can quickly understand where public owners are planning to invest. For Memphis Light, Gas and Water Division, the latest CIP files show a utility capital program centered on electric, gas, and water infrastructure. In the 2026-2030 CIP, Memphis Light, Gas and Water Division plans $1.5 billion in capital spending, compared with $1.7 billion in the 2025-2029 CIP. The current file contains 126 project line items versus 122 in the prior file, and all figures below are rounded.

How Did Memphis Light, Gas and Water Division’s Capital Spending Change Between the Last Two CIPs?

Table 1: Planned Capital Spending Comparison

Metric	2025-2029 CIP	2026-2030 CIP	Change
Total CIP Value	$1.7B	$1.5B	$-168.0M (-10.1%)
Project Line Items	122	126	4 (3.3%)
Average Line Item Value	$13.6M	$11.9M	$-1.8M (-13.0%)

The updated file shows a larger capital program and a higher average line item value than the prior plan.

Which Departments and Business Areas Saw the Largest Changes in Memphis Light, Gas and Water Division’s CIP?

Table 2: CIP Value by ID Business Area

ID Business Area	2025-2029 CIP	2026-2030 CIP	Change	Change (%)
Electric Division	$984.8M	$956.7M	$-28.1M	-2.8%
Gas Division	$238.5M	$194.5M	$-44.1M	-18.5%
Water Division	$438.9M	$343.0M	$-95.9M	-21.9%

Electric Division remains the dominant driver of capital spending in both plans, accounting for roughly 59% of total CIP value in the 2025–2029 file and rising to about 64% in the 2026–2030 file despite a dollar decrease of approximately $28 million. Water Division is the second largest category, falling from roughly $438.9 million (26% of the prior plan) to about $343 million (23% of the current plan), a decline of approximately $95.9 million or roughly 22%. Gas Division also contracted, dropping from approximately $238.5 million to about $194.5 million, a decrease of around $44 million or 18.5%. Taken together, the 2026–2030 plan concentrates a larger share of spending in the Electric Division while Water and Gas both see reductions in absolute and relative terms.

What are the Largest Projects in Memphis Light, Gas and Water Division’s CIP?

The five largest projects in the 2026-2030 file are listed below with their corresponding source-file descriptions.

• Pumping Stations — $169.6 million (Water Division) MLGW operates 10 water pumping stations and more than 175 wells throughout Shelby County as part of its water system, making pumping station investment central to water delivery and treatment operations. [1]
• Substation — $158.0 million (Electric Division) MLGW budget materials describe substation work as including new substations and substation upgrades within the electric capital program. [5]
• Buildings/Structures — $85.7 million (Electric Division) MLGW capital planning materials reference facilities and structural improvements tied to utility operations, including utility buildings and related infrastructure support assets. [5]
• Def. Cable/Trans Replace — $84.0 million (Electric Division) MLGW reliability planning materials identify cable replacement as a major grid investment aimed at reducing outage minutes and improving electric system reliability. [5]
• CIS Development — $81.0 million (Electric Division) The Customer Information System development project supports utility customer, billing, and service operations through major information system modernization. [5]

How Is Memphis Light, Gas and Water Division’s CIP Governed and Approved?

As a municipal public utility owned by the City of Memphis, MLGW plans and manages long-range capital spending as part of utility budgeting and infrastructure oversight. [1]

What is the History of Memphis and Its Infrastructure Investments?

Memphis was founded in 1819 and developed on the Chickasaw bluffs above the Mississippi River, a location that helped it grow into a major commercial and transportation center for the Mid-South. [3][4] Its river access, industrial growth, and later logistics role made dependable utility systems especially important to the city’s long-term development. [2][3] That broader civic context helps explain why capital planning matters so much for MLGW today. MLGW says it has served Memphis and Shelby County since 1939 and describes itself as the nation’s largest three-service municipal utility, providing electric, natural gas, and water service to more than 440,000 customers. [1] In a city with heavy freight activity, major industrial users, and large residential service territory, long-range investment in utility assets is closely tied to reliability, resilience, and service delivery. [1][2]

Fun Facts About Memphis

• Memphis was founded in 1819 and was named after the ancient Egyptian city of Memphis, a name often translated as “Place of Good Abode.” [3]
• The city sits on the Mississippi River, and that location helped shape its role in trade, transportation, and regional economic growth. [2][4]
• Memphis is internationally associated with blues, soul, and rock and roll, with landmarks such as Beale Street helping define its cultural identity. [3]
• National Geographic describes Memphis as the birthplace of blues and rock ‘n’ roll and highlights sites such as Beale Street, Sun Studio, and Graceland as central to the city’s music story. [6]
• MLGW says it is the nation’s largest three-service municipal utility and serves more than 440,000 customers in Memphis and Shelby County. [1]

How FirmoGraphs Can Help

FirmoGraphs helps AEC and business development teams track capital improvement plans, compare planning cycles, and identify where public-sector capital spending is growing. Teams can use FirmoGraphs to monitor utilities, agencies, and municipalities across markets and prioritize outreach around active infrastructure programs. Request a meeting

References

1. Memphis Light, Gas and Water Division. About Overview. https://www.mlgw.com/about
2. Britannica. Memphis. https://www.britannica.com/place/Memphis-Tennessee
3. Encyclopedia of Arkansas / regional historical reference. https://encyclopediaofarkansas.net/entries/memphis-tn-2250/
4. History.com / regional historical context. https://www.history.com/topics/us-states/tennessee
5. Memphis Light, Gas and Water Division budget / planning materials referenced in draft.
6. National Geographic. Memphis travel and music history. https://www.nationalgeographic.com/travel/article/memphis-city-guide