Residential Services | Gas | Water | Home | Contact Us |
 |
 |
|
8.12.03 M.U.D., Aquila spar over rights to territory A proposed housing development in Sarpy County has become the latest fight for turf between the Metropolitan Utilities District and Aquila Inc., the Omaha metro area's two natural gas providers. Over the objections of Aquila, the M.U.D. board last week approved providing natural gas service to the 227-acre development south of Harrison Street between 96th and 102nd Streets. Aquila will now take the issue to the Nebraska Public Service Commission for arbitration. The two utilities have sparred before over territory. The ability to expand in the rapidly growing areas outside of Omaha gives each utility a stronger economic base. State law restricts duplication of services but doesn't map out the precise jurisdictions the two utilities can serve. Avoiding duplication is in the public's interest for safety and economic reasons. In the interest of "orderly development," and for a variety of other reasons, Aquila should be the provider of natural gas, Alan Hersch of Aquila told the M.U.D. board. Aquila now serves customers on three sides of the development, he said. M.U.D. has gas lines across the street from the new development and is in an equal position to provide service, said Tom Wurtz, M.U.D. general manager. Besides, the developer asked for M.U.D. "If the developer hadn't asked us," Wurtz said, "we wouldn't be there." Jerry Torczon of Torco Development Co. said he asked for M.U.D. to provide service simply because he believes in competition. The past couple of developments that he has built have been served by Aquila. "I don't have a complaint with either one," he said. "I like moving it around. I like seeing competition. I wish there was more of it." Torczon and his brother, Tom, plan to develop the land for 285 single-family homes and 94 town homes. The development is within La Vista's extra-territorial zoning jurisdiction, and La Vista gets its natural gas from Aquila. Down the road, when this subdivision is annexed by La Vista, a difference in natural gas providers could lead to a discrepancy in fees paid to La Vista city government. Currently, M.U.D. compensates local communities with a 2 percent payment in lieu of taxes. Aquila pays a 5 percent franchise fee to La Vista. Those fees are passed on to customers. Cara Pavlicek, La Vista city administrator, said such a discrepancy could lead to tax inequities between neighboring subdivisions and could increase pressure on property taxes to compensate for the difference. For that reason, if M.U.D. were to become this subdivision's natural gas provider, Pavlicek said, the day might come when La Vista would need to ask the Legislature to raise the payments that M.U.D. makes in lieu of taxes. |
|
