(June 3, 2011) — A recent adjustment to MLGW's Purchased Gas Adjustment (PGA) will result in credits that will be reflected on the August bills of MLGW’s natural gas customers. The adjustment is the result of a billing error that was recently discovered and reported by MLGW staff. The error dates back to a rate adjustment that was made in January 2008 and reflects gas usage between then and May 2011. The overcharges amounted to a little less than $1 per month per customer. The average credit will be about $38 per residential customer and will be reflected in customers’ gas charges.

The amount of the credit adjustment for commercial customers will vary. The actual amount of these credits is based on each customer's actual gas usage between January 2008 and May 2011.

"We regret that this error occurred," said Jerry Collins Jr., MLGW President and CEO. "However, we are making it right in the form of this credit to our customers and hope that it will provide some relief for their August utility costs."

The PGA is a cost recovery mechanism. Monthly gas bills reflect the cost of the natural gas MLGW purchases, as well as the cost of gas storage, transportation, and delivery. These costs fluctuate due to the deregulated, competitive natural gas marketplace. Like virtually all natural gas utilities, MLGW uses a PGA to pass along these increases and decreases in gas costs to its customers.

MLGW is the largest three-service public power utility in the nation, serving more than 423,000 customers in Memphis and Shelby County.