Jim Gilliland Jr. is a model of business leadership and an expert in public financing. He has demonstrated it with his informed advocacy for Memphis to consider alternative sources of electricity that are less expensive and just as reliable as TVA. He was genetically preordained to stand up for Memphis as he son of Jim and Lucia Gilliland who could always be counted on doing what was best for Memphis and led many efforts for the city’s progress. His father died four years go and his mother died 27 days ago, leaving a large void in Memphis. Thankfully, he continues his family heritage with his latest provocative column which was published a few days go in The Commercial Appeal.
By Jim Gilliland
xAI, Elon Musk’s artificial intelligence firm, recently announced that it plans to build a water recycling plant for its new supercomputer. That is wonderful news, because xAI would therefore not waste the Memphis Sands Aquifer’s famously pristine water, Shelby County’s only drinking water source.
Jim Gilliland
This gesture is from the newcomer to town who clearly wants to be well received. It’s a smart move because xAI’s announcement drew surprising community pushback and serious questions, due in large part to its proposed water waste, amongst MLGW’s worst five. It is a no-brainer if xAI plans to be a good community citizen.
Guess who hasn’t committed to mitigate its own gigantic water waste?
By far the biggest water hog of them all, TVA, MLGW’s largest water waster. TVA uses roughly 2.9 million gallons per day to cool its power plant, dwarfing xAI’s anticipated 1.2 million gallons per day, and adding insult to injury, then dumps it in the Mississippi River.
Yet it was xAI who has stepped up to offer to build the recycling plant, not TVA. Not only should TVA have built one years ago, but they have thus far even declined to partner with xAI on it. It is a slap in face to Shelby County, and contrary to the honorable missions of the Wolf River Conservancy and Protect Our Aquifer.
A few questions: i) Why didn’t MLGW lean on TVA first for the recycling plant, ii) why hasn’t TVA agreed to partner on xAI’s plant, and, iii) why do we tolerate TVA’s blatant disrespect to Shelby County?
Some points to remember: MLGW is TVA’s largest customer (10% of TVA revenue), yet:
- TVA ships out roughly $1.3 billion of Shelby County ratepayer money to the Knoxville and Chattanooga economies with diminimus local reinvestment,
- TVA has an almost non-existent corporate presence in Shelby County, with roughly 40 employees out of 10,000 TVA employees (not the 1,000 – 10% of their workforce – that we deserve),
- TVA wastes by far the most Aquifer water,
- TVA refused to move its toxic coal ash waste outside of Shelby County, by settling for a location inside the city limits without public input, and
- TVA prevents (2) third-party testing (think Erin Brockovich) of one of its local coal ash ponds that experts seriously believe threatens the Aquifer.
Ironically, due to its monopoly, TVA decides whether to give xAI the green light. Thus, the bad corporate citizen has the Shelby County powers kissing its ring for xAI approval. A bigger irony is that TVA is embarrassingly short on wholesale power itself, contrary to the previous MLGW Administration’s debunked conclusion that TVA has adequate and reliable power for all.
This is relevant because MLGW and TVA execs will be hosted by the Memphis Chamber of Commerce on August 22 at the Peabody, for an elite corporate audience “Power Summit” discussion. They will be joined by Ford Motor Company execs, which is odd, since Blue Oval is not in MLGW jurisdiction. At least Ford is employing thousands of West Tennessee jobs, unlike TVA.
The “Power Summit” feels like something TVA’s local political advisor dreamed up, as a choreographed TVA balloon-drop announcement – for something Shelby County is expected to be grateful for – mindless of TVA’s long-term disrespect. The audience should prepare for enough TVA gaslighting to run the power plant.
There is inadequate room here to rehash former Mayor Jim Strickland’s taxpayer-funded audit results of MLGW’s sham Wholesale Power RFP. Released in the final days of the Strickland administration, the conclusions are peer-reviewed and in writing , though new MLGW leadership won’t call it for the truth it is, likely a deference to questionable loyalties of MLGW electric division.
Nor is there room here to advocate for common-sense Industrial Water Rate reform to disincentive the water hogs from feckless waste. MLGW Industrial water rates are flagrantly unprofitable for the system as a whole, while residential customers soon face a sizable rate increase.
Mr. McGowen deserves credit for xAI’s recycling effort, and we cross our fingers he does more, beginning with gaining more leverage and respect with TVA, and to give the idea of cheaper, just as reliable, electricity a fair hearing.
