To: MLGW Board of Commissioners

Residential water customers pay a flat rate regardless of usage, while commercial customers benefit from a regressive rate structure. The more water they pump – the less they pay. The undersigned ratepayers acknowledge the urgent infrastructure needs of MLGW, but we will not support a water rate increase without shifting commercial water users to a more equitable rate structure.

The 2018–2023 $5M Aquifer Study confirmed that young water is impacting wellfields across the County and that widespread conservation is essential to preserve our water quality.  Water in the Memphis Sand Aquifer itself is free to MLGW, so smart pricing is the only way to reflect the true cost of preserving this pure, ancient resource. 

The inequity in our water rates is clear:

• Memphis residents pay $0.32 per 100 gallons of water. Commercial water customers start paying $0.40, but the more they use the less they pay and can end up paying just $0.17 per 100 gallons – half of what we pay as residents.
• Commercial water users consume 52% of our total use per day – which can strain our systems, particularly during peak demand.
• Residents pay a full 9.25% sales tax on their water bills, while manufacturers only pay 1%. 
• Regressive rates disguise the real costs, overcharging light users and undercharging heavy ones, which undermines financial fairness and doesn’t incentivize conservation.

Progressive rates ensure businesses—especially those profiting from Memphis’s pure water advantage—pay their fair share and align costs with actual system use.

We call on MLGW to lead with fiscal responsibility and sustainability:
No residential water rate increases unless the steep regressive discount for industrial water users is reformed into a fair, progressive structure.