THE TRUTH: MLGW Gives Better Service to "A" Customers

Reported by: Jeni DiPrizio
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Updated: 2/20 11:13 am
MEMPHIS, TN (abc24.com) - Who you are depends on how you're treated at Memphis Light Gas and Water. Most customers don't know that they're "rated" by the utility company. ABC 24's Jeni DiPrizio has the truth on MLGW's two-tiered system.

Five years ago MLGW took plenty of flack after it was reported there was a secret list at the utility company. Politicians and other important people on the list who didn't pay wouldn't have their utilities turned off.

That secret list is now gone, but that doesn't mean that all customers are created equal.

Memphis Light Gas and Water customers are given either an "A" or "B" ratings. Customers at one MLGW payment center had no idea there was a two-tiered system, or what their "rating" was.

Customers with good credit or pay histories get an "A" rating. Everyone else is a "B".

The truth is, your rating makes a difference on how you are treated by the publically-owned company.

For example, a "B" customer who doesn't pay his bill will have his electricity turned off after 25 days. An "A" customer gets almost twice as long, 47 days before he or she is disconnected.

"The customers with good credit ratings are given more slack," stated MLGW President Jerry Collins. "It's like when you have a car. If you have a wreck your insurance rates go up. If you are accident free you pay lower rates."

One MLGW customer told abc24.com, "That's not fair, everyone should be treated equally."

Collins said if "B" customers don't like the policy, "the customers with the good credit history don't think it's fair they pay their bill every month and someone else doesn't."

More than a third of MLGW customers have that "B" rating, and in zip code 38115, which encompasses Hickory Hill, there are more "B" rated customers than "A" customers.

If you don't know your rating you can ask MLGW.

This rating system is a Memphis thing. Entergy customers in Mississippi and Arkansas are not graded and everyone is on the same the payment schedule.

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The views expressed here do not necessarily represent those of abc24 News

rascal850 - 2/21/2012 8:31 AM
1 Vote
i agree that good payment history deserves to be recognized.a good or excellent credit history should be rewarded with a better rating.

bluffcity - 2/20/2012 9:50 PM
1 Vote
I agree with the comments previously posted. First of all this is a non-story...maybe it was a slow news day. Secondly, if you are a responsible customer & pay your bills on time then I see no reason that you shouldn't receive some kind of perk. Responsibility has many rewards!

Frayserrboi - 2/20/2012 5:22 PM
2 Votes
Which rating do the Fords get???

memphis2011 - 2/20/2012 1:14 PM
1 Vote
These "B" customers had their opportunity to be an "A" customer and blew it. If they want to be on the "A" list there is a requirement, pay your account on time. Logical that someone who doesn't pay on time is a greater risk and thereby should be treated in that manner.

UGLYBOB82 - 2/20/2012 9:15 AM
2 Votes
The only people who dont like this rule are those who dont pay their bills on time. Sorry you cant manage your money. Sucks to be you. I can't feel sorry for you because a company keeps you on a shorter leash because youve proven to them you are irresponsible. They have to protect themselves too. Its called personal responsiblity. I've sacrificed things that I've wanted so I can pay my bills on time. I've earned that special treatment. So quit sticking your hand out crying to be treated the same as those more responsible than you. Earn it.

So Haven - 2/20/2012 8:26 AM
2 Votes
@ Real - I highly doubt you know anyone who owns a "23,000" s.f. house. If you did, you would know it would take a LOT more than two units to heat/cool it. Therefore, one must assume you mean a 2,300 s.f. house. In this case, 2 units is overkill for that square footage and they probably rarely run, thus lowering bill. In addition, most modern HVAC units are energy efficient. Space heaters are energy HOGS and yours probably runs 100% of the time. As to the article - WAKE UP! Many Fortune 500 companies do the same thing! It's called Stratification. Your bank does it, your phone service provider does it, your credit card company does it, most stores you frequent do it when you have an account with them. The better your payment history, the more likely they will be to offer you better terms, more perks and more forgiveness in times of need.

Get Real - 2/20/2012 8:10 AM
0 Votes
It also seems people in a better neighborhood pay less utility rates that others. For example, how can my friend who lives in a 23000 sq. ft. home with two central air units pay less monthly utility bills than I do with one space heater in my 865 sq. ft. home? Something does not add up!

ReligionStinks - 2/20/2012 7:44 AM
2 Votes
There is nothing unfair about this rating system. People with good credit and who pay their bills on time SHOULD be given longer to pay if they have a one time failure to pay on time. Habitually late and/or irresponsible people should not be bailed out by the rest of us.

mytown - 2/20/2012 12:28 AM
2 Votes
If MLGW sold stock and I had me a piece of that monolith I would demand an even more stringent system be put in place. Wouldn't any other clear-thinking investor?

charper1 - 2/19/2012 10:19 PM
1 Vote
Sad ABC24, just sad. You guys in the media are doing a great job trying to overly dramatize and inflame residents over a practice that SHOULD be happening just like it is; if not MORE SO. If you are consistently paying on time you should get some rewards or beneficial treatment; just like with your credit, your interest rates, etc. If you don't, then you should NOT receive those same privileges; COME ON!! . Anyone that didn't already know this was happening is lying or being totally naive. Saying that MS and AR utilities don't do it, simply means they won't admit it out loud or you can't prove it yet. Stop trying to bait bad arguments among Memphians and providing people with even more reasons not to have personal pride or personal responsibility in their actions.
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