(November 7, 2008) - Memphis will have a more environmentally friendly electric system upon completion of an agreement with the Environmental Protection Agency (EPA) to remove Polychlorinated biphenyl (PCBs) from its electric grid.

EPA inspections of MLGW in 2005 and 2006 noted discrepancies in the utility’s management of PCBs. As a result, EPA worked with MLGW to ensure that procedural changes were made. The federal agency and MLGW agreed on a $1.22 million settlement for noted violations of codes.

Phase one of this progressive program will replace at least 880 transformers as well as remove 2,859 large high-voltage PCB capacitors located inside substations. MLGW currently meets federal guidelines for PCB levels, but at the end of the three year program will exceed updated regulatory standards. The cost of the updating, an estimated $10,000,000 over three years, and is built into the utility’s capital budget, beginning in 2009.

"MLGW quickly took steps to resolve the issues when identified in 2005. We also talked with the EPA to find ways to ensure that our system was more environmentally friendly. This gives us the opportunity to not only meet but to far exceed current EPA requirements," said Jerry Collins Jr., MLGW President and CEO.

This project was undertaken in connection with the settlement of an enforcement action taken by the U.S. Environmental Protection Agency for violations of Section 6(e) of TSCA, 15 U.S.C. § 2605.

MLGW is the largest three-service public power utility in the nation, serving more than 420,000 customers in Memphis and Shelby County.