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6.06.02

M.U.D. gets deal on new hand-held meter reading devices
by Nancy Gaarder, Omaha World-Herald

Sometimes a little bad news can turn into very good news.

Several months ago, Metropolitan Utilities District discovered that about 3,000 gas meters were being misread -- mostly to the customer's benefit and the utility's expense -- because of a programming error made by the suppliers.

In seeking about $45,000 in compensation from the suppliers, Itron Inc. and American Meter Company, M.U.D. has ended up getting new hand-held meter-reading devices for a small fraction of the cost.

Wednesday, the M.U.D. board approved a proposal that will make that possible. Between the trade-in allowance and other adjustments, M.U.D. will end up paying a total of $6,280.96 on what would have been a $183,935 contract.

"We think it's a very good deal," said Ron Bucher, assistant general manager for administration at M.U.D.. "This will give us the most modern equipment available."

The utility will get 36 hand-held readers from Itron to replace the 34 now in use. M.U.D. was three years into its 7-year contract for the hand-helds.

The problem had gone on for only a couple of months before the mistake was noticed, Bucher said. Customers will not be asked to pay the difference, because the utility will recoup it from the suppliers.

Most of the undercharge amounts were minor, Bucher said. The billing discrepancy accounts for about $4,100 of the $45,000 that M.U.D. was seeking, Bucher said. Most of the expense that M.U.D. incurred was for reprogramming and clerical work.

M.U.D. and the Omaha Public Power District will be using the same model of hand-held meter reader, Bucher said, which means the two utilities' equipment would interchangeable should disaster strike one of them.

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