The Memphis Light, Gas and Water Board of Commissioners Thursday voted to reimburse former MLGW President & CEO Joseph Lee, III $489,861.48 in legal and related expenses occurred during a Federal investigation in 2007. However, the Board turned down Lee's request for compensation of lost wages and to extend medical benefits to him.

Joseph Lee incurred legal fees as a result of having to defend allegations of wrongdoing while performing his duties as President and CEO of MLGW. These allegations resulted in an indictment which was subsequently dropped. Mr. Lee was not found guilty of any crime.

In the letter, Collins stated that Lee is not entitled to lost compensation or medical benefits since Lee voluntarily resigned his position May 4, 2007. There was no contractual agreement between Lee and MLGW for a continuance of pay if Lee resigned from his position at MLGW.

"According to City policy this is the right thing for us to do," said Collins.

The payment must also be approved by the Memphis City Council.

MLGW is the largest three-service public power utility in the nation, serving more than 420,000 customers in Memphis and Shelby County. A 2008 survey of large metropolitan areas showed that MLGW has the sixth lowest combined rates in the nation.