MEMPHIS, Tenn. -- Starting on January 3, 2025, electricity rates will increase by 4%, according to Memphis, Light, Gas, and Water. The company says the increase is part of a plan to replace outdated infrastructure and modernize the grid, which will help reduce outages and improve reliability. Electric rates will start with meter reads. The increase will cost the average household around $5 per month. City Council approves 12% hike in electricity rates starting in 2024 However, natural gas and water rates will remain the same in 2025. This comes after the Memphis City Council approved MLGW’s request to gradually raise electric rates by 12% over the coming years. MLGW President Doug McGowen says the cost of the rate increase is less than the cost of a fridge full of food that can ruined by a power outage.