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12.6.02 M.U.D. not planning water, gas rate increase For the second year in a row, the Metropolitan Utilities District won't change the amount it charges to provide water and natural gas in the Omaha area, according to the utility's 2003 budget. That doesn't mean that natural gas prices won't rise this winter. MUD doesn't control the full price of natural gas; it controls how much it charges to distribute the gas, but it passes along any increases or decreases in the price of that gas. The utility hasn't increased its natural gas distribution charges since 1992. It hasn't increased water rates since 2000. Tom Wurtz, MUD general manager, said his staff has worked for several months to come up with an "extremely tight" budget that avoids rate increases. The utility is trimming seven positions through attrition, and some improvements are being delayed. "We have a lot of things we need to spend money on around here," Wurtz said. "But with the tough economic times that our customers are facing, we just didn't feel that now is the time for a water or gas rate increase." A projected 18 percent increase in the 2003 budget largely is explained by two things: the extra natural gas that MUD would need to buy if this is a normal winter, and an increase in the construction budget if the utility begins work on a new water treatment plant and well field. If this winter is like last winter -- unusually warm -- MUD could find itself trimming expenses, Wurtz said. Warm weather saves customers money but reduces MUD's income. "We're going to do our best to make sure there is not a rate increase," he said. The record amount of water that people used last summer has helped MUD avoid a water rate increase next year, Wurtz said. Customers used 19.8 billion gallons of water from May 1 to September 30, up slightly from the previous high in 1988. The 2003 budget assumes that MUD will get the permit it needs from the U.S. Army Corps of Engineers to begin work on a new well field along the Platte River and a water treatment plant. The budget sets aside $14 million in work toward the $300 million facility. A public hearing on the budget will be held at 8:30 a.m. December 27 at 1723 Harney St. The board may choose to vote on it then. |
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