Battery Storage Is Charging Up
January 23, 2023

The Tennessee Valley has an opportunity to lead the nation in battery storage technology .  As its members, the Local Power Companies (LPCs), explore battery storage options, Seven States is the go-to partner to streamline the process, aggregate projects for grant funding, and facilitate a successful deployment. Seven States has broad experience building partnerships to deploy a variety of different storage technologies, including at the US Space and Rocket Center , the University of Memphis , and Nissan’s manufacturing plant in Smyrna, TN.

Through their work with battery storage, LPCs continue to explore how this technology can enhance the reliability, resiliency, affordability, and sustainability of their operations.  For example, battery storage units can be dispatched effectively during valley-fill generation periods and provide high confidence generation for day-ahead programs that complement demand response programs. Reducing the monthly on-peak and all-peak demand can save an LPC more than $10 for each kW reduced. Understanding typical monthly load curves and strategically deploying battery storage units are key to optimizing this untapped opportunity.

Additionally, battery storage allows for end-of-line voltage support and serves as a core generation source for a microgrid. In other parts of the US, battery storage is used to provide ancillary transmission support services.

True to its purpose as a hub for innovation and information sharing, Seven States released two RFIs in 2022 to study the battery storage market. The results revealed two primary approaches to pricing for LPCs: leasing or owning. While leasing costs over the life of the project are expected to be higher than if the LPC purchases the system directly, it allows the LPC to minimize risk.  Direct ownership may yield lower costs; however, the LPC assumes operational risk.

In 2022, the battery storage market experienced unprecedented demand as well as unprecedented supply issues with core materials associated with lithium batteries. Battery prices increased by 7% in 2022, according to a recent Bloomberg report. Several utility battery manufacturers are switching to lithium iron phosphate (LFP) batteries because core materials are available and less expensive. As this transition continues and new battery manufacturing plants open in the US, prices are expected to levelize.

The Inflation Reduction Act of 2022 (IRA) provided new tax incentives for battery storage both by expanding the number of entities who are eligible and by raising the maximum potential savings percentages.

State and local governments (and political subdivisions thereof) are now eligible to receive the investment tax credit (ITC). Standalone battery storage projects are now eligible for ITCs (previously, battery storage was not eligible for the ITC unless it was tied to a solar array). The legislation also raised the maximum ITC rate from 26% to 30% — with some projects now even eligible to receive up to 50% in credit if the project meets additional requirements.

Federal tax incentives and market forces are combining to make battery storage solutions a better bet for LPCs in the Valley. If you want to learn more about battery storage for your LPC, give Seven States a call.

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By Jessica Bradshaw June 18, 2026
June 18, 2026 Seven States Power Corporation, headquartered in Chattanooga, Tenn., announced in September a partnership with MLGW that would deliver a significant infrastructure investment to modernize the electric grid in partnership with Memphis Light, Gas and Water (MLGW) a municipal public utility based in Memphis, TN. Since that time, the project has expanded beyond its original scope. Originally envisioned as a combined solar-and-storage project, the initiative will now deploy battery storage as a standalone resource designed to support peak demand, improve grid resiliency, and provide MLGW with greater operational flexibility. The project remains backed by Seven States’ award of a landmark $439 million zero-interest loan and grant from the U.S. Department of Agriculture’s Rural Utilities Service (USDA RUS). The revised approach reflects a strategic decision to prioritize dispatchable energy assets that can respond immediately to system needs. By focusing solely on battery storage, Seven States and MLGW aim to enhance reliability, allowing the utility to better manage demand fluctuations and unexpected outages while maintaining some of the lowest electric rates in the country. “We are thrilled to build new electric infrastructure to support growing demand and meet the region’s energy needs,” said Betsey Kirk McCall, President and CEO of Seven States Power Corporation. “Battery storage provides a powerful, flexible, and innovative tool that aligns with national priorities around energy dominance, affordability, and reliability.” Led by Seven States Power Corporation, the project will consist of 100 megawatts of battery storage capacity interconnected with MLGW’s electric distribution system. The batteries will be capable of storing energy from the existing grid and deploying it during periods of peak demand or system stress, helping stabilize the grid while reducing exposure to high-cost power purchases. “This scalable battery solution allows us to modernize our grid and improve reliability for our customers,” said Doug McGowen, president and CEO of MLGW. “It gives us greater control during peak demand periods to support power supply to our customers across Memphis and Shelby County.” The battery installations will be constructed at several MLGW substations throughout Memphis and Shelby County. Construction is expected to begin in 2027, with the project targeted for completion by December 2028. Once operational, the initiative is expected to support the electric needs of approximately 12,000 homes and businesses across Shelby County and create jobs during construction. Seven States will utilize the award from USDA to build 220MW of battery storage with its electric utility partners in west, middle and east Tennessee. The initiative is among the first of its kind in the Tennessee Valley, demonstrating how federal financing, local ownership, and collaborative partnerships can accelerate deployment of advanced grid technologies. Seven States and MLGW view the project as a model for future battery-focused investments across the Southeast. Additional Related Articles MLGW, Seven States make deal to deploy battery storage; xAI solar sublease scrapped Memphis leads TN in lead service line removal efforts MLGW proposes battery storage projects to strengthen electric grid
By Jessica Bradshaw June 1, 2026
Leading Hartselle Utilities as General Manager, Ty Chancelor has focused on innovative efforts that improve reliability, efficiency, and customer service. We asked him to elaborate on the specific technology and modernization that has changed his LPC footprint, in addition to describing some of his team’s wins for their community. The modernization effort that has likely had the biggest impact on our community in recent years has been Hartselle Utilities’ transition to Advanced Metering Infrastructure (AMI). We began with the conversion of our electric and natural gas systems and ultimately plan to expand AMI capabilities to our water system as well. It’s significantly improved the reliability and efficiency of our operations while also enhancing customer service. For a growing community like Hartselle, investing in modernization projects like AMI helps position us to serve our customers more efficiently while preparing for future technology needs. One specific project our team is especially proud of is our peak shaving initiative. The installation and implementation of the project was spearheaded by our previous General Manager, Bob Sittason, with engineering support from Lance Junkin and Stewart Engineering. Bob strongly believed in making strategic investments that would create long-term value for our customers, and this project is a great example of that vision. Peak shaving has allowed Hartselle Utilities to reduce wholesale power demand costs during periods of highest usage, creating substantial savings for our system and ultimately for our customers. The project also positioned Hartselle Utilities to be more proactive and data-driven in managing system demand and power costs. In March 2022, the Board also approved a voltage reduction proposal as part of our continued efforts to improve system efficiency and maximize savings opportunities. Beyond the financial impact, this project represents the forward-thinking leadership and long-term planning that continues to shape our organization today. Ty also credits Seven States as being a valuable partner for Hartselle Utilities as the needs of his community have continued to evolve. Seven States has been a tremendous partner in helping Hartselle Utilities explore and implement innovative projects that benefit our community. One of the best examples is the installation of our downtown EV fast charging station. With financial support and guidance from Seven States, Hartselle Utilities was able to bring fast-charging infrastructure to our downtown area, helping support economic development, tourism, and the growing demand for electric vehicle accessibility. The project aligned well with our goal of preparing our community for the future while also encouraging visitors to spend time in our downtown district. Since the ribbon cutting in July 2024, the charging station has seen strong community and traveler usage. Projects like this demonstrate how partnerships with organizations like Seven States help local power companies take practical steps toward innovation while still focusing on community needs. Despite the rapidly changing technology in the Valley, the utility business remains rooted in personal relationships and customer service. Chancelor believes that will always remain important in communities like Hartselle. No matter how much technology evolves, I don’t think in-person customer interaction will ever completely disappear in the utility industry. Utilities are still very relationship-driven, especially in communities like Hartselle where customers know our employees personally and expect a level of service that goes beyond an app or automated system. Technology absolutely improves efficiency and communication, but there are still times when customers simply want to talk to a real person face-to-face — whether it’s discussing a billing issue, setting up new service, or navigating a difficult situation after a storm or outage. At the end of the day, utility service is still about serving people, and I think that personal connection will always matter. When asked a lighter question outside the utility world about who he’d most like to sit down with over dinner, his answer came without hesitation. Without question, it would be Dak Prescott. Now realistically, Dak would probably spend dinner wondering why a utility manager from Alabama is staring at him like he’s meeting a superhero, while I’d spend the entire evening trying not to ask too many Cowboys questions in the first five minutes. I’d like to say we’d have deep conversations about leadership, overcoming adversity, and performing under pressure — and hopefully we would — but there’s a strong chance I’d also ask him to explain at least three questionable fourth-quarter decisions from recent seasons. As a Cowboys fan, hope springs eternal. Every season starts with “this could be the year,” and honestly, that kind of optimism probably translates pretty well to the utility business too.
By Jessica Bradshaw June 1, 2026
Chickasaw Electric Cooperative General Manager Loyd Muncy has prioritized technology and modernization efforts that strengthen reliability, improve efficiency, and enhance service for his cooperative members. We asked him to share more about the innovations making an impact across Chickasaw Electric Cooperative’s service territory, along with a few projects he is especially proud to see implemented in the community. The Advanced Metering Infrastructure (AMI) has already provided valuable insight into the electric system and will continue to enhance operations as more data is collected and analyzed. AMI has also enabled our team to respond more quickly and accurately to member questions regarding energy usage and outage information. In addition, remote meter reading and remote connect/disconnect capabilities have streamlined operations and reduced field workload. We’re really proud of the way the integrations between our systems have significantly streamlined daily operations and improved service to our members. By integrating our Outage Management System (OMS) with AMI, we receive real-time outage information and can proactively notify members via text message to let them know we are aware of the outage and are responding. Integration with our Geographic Information System (GIS) also allows us to pinpoint fault locations and accurately map where outages or momentary “blinks” occur. In addition, all field crews are equipped with iPads, giving them mobile access to OMS, AMI, and GIS directly from their trucks. This immediate access to system data improves communication, speeds restoration efforts, and enhances overall operational efficiency. Loyd views Seven States as a trusted industry resource and a valuable partner in helping LPCs navigate emerging technologies and evolving energy needs across the Valley. As Chickasaw Electric Cooperative continues exploring new opportunities, he sees collaboration and shared expertise playing an important role in future innovation efforts. As we move forward with storage and DER, we expect to tap into Seven States resources and expertise as we evaluate opportunities, learn from industry experience and continue planning for the future needs of our system and members. While technology continues to transform the utility industry, Muncy believes some aspects of the cooperative model will always depend on personal relationships and direct communication with members. Good old-fashioned troubleshooting and knowledge of the electric system will never completely disappear in the world of technological advancement, and while those skills will always matter, technology and AI are quickly advancing to provide much of that information in real time. What technology cannot replace, however, is the value of face-to-face interaction with our members. Building trust and letting our members know we understand and remain committed to the mission of reliability and affordability will continue to be one of the most important parts of what we do.
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