
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.
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