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12.15.03 M.U.D. sets hearing on gas, water rate increases Customers of the Metropolitan Utilities District will pay more for their water use next year and more to have gas delivered to their homes if the utility's board approves proposed rate increases. Overall, the typical residential customer's combined gas and water bill would increase by an average of $2.77 per month. But if you get sticker shock in the next few months when you open your heating bill, it won't be because of these rate increases. The cost of natural gas nationally, which has been unusually high since last winter, has surged since Thanksgiving. That's a cost that M.U.D. doesn't control but simply passes on to customers. The section of the gas bill that M.U.D. is proposing to increase is the monthly service charge, which pays for such fixed costs as meter reading and billing. The service charge, which was last increased in January 2002, would rise by $2.40 a month. While that's a 20 percent (for commercial customers) or 34 percent (for residential customers) jump in what M.U.D. charges, it translates into a 4 percent overall increase in the gas bill because the service charge is such a small portion of the bill. Water rates, which last went up in 2001, would rise 2.72 percent, or an average of 37 cents a month. Both the water and gas rate increases would take effect Jan. 2. The utility's board will hold a public hearing Friday on the rate increases and the 2004 budget. It's possible the board will vote on the budget at that time. Although the rate increases are expected to generate $6.9 million in additional revenue, M.U.D. will be working under an extremely tight budget, said Tom Wurtz, general manager. Overall, the budget is expected to grow less than 1 percent to a total of $348 million. Most of the new rate revenue, $5.6 million, would come from the increase in the monthly natural gas service charge. That money is needed, Wurtz said, to bring that department back into the black and pay off $4.1 million in debt. Three successive warm winters have eroded the gas department's bottom line, Wurtz said. While warm winters mean lower bills for consumers, they also mean less revenue for gas companies. Even with this increase, Wurtz said, the gas department is expected to finish the year with less than $100,000 to spare on a $251 million departmental budget. The increase in the water rates is needed to cover increasing expenses such as security costs and a new treatment method that reduces the potential for cancer-causing byproducts to form in water. As in previous years, this budget reduces staffing. Six positions would be trimmed, taking M.U.D. down to 803 full-time employees. At that level, the utility would have 2.12 employees per 1,000 customers, compared to 3.15 in 1979. Among the big ticket items in the budget is $21 million for design of a new water treatment plant at 217th and Q Streets and to develop new wells in Douglas and Saunders Counties along the Platte River. The new $300 million plant and well field are expected to come on line 2008. Another item in the budget, a $2.9 million pumping station at 141st and State Streets, is intended to improve water pressure for customers in northwest Douglas County. M.U.D. serves more than 180,300 water customers and 193,500 gas customers in the Omaha metropolitan area. M.U.D. proposed rate increases Water Overall 2.72 percent increase Average homeowner would pay $4.41 more a year, for a total water bill of $166.50 Last increased: April 2001 Natural gas Monthly service charge to rise $2.40 for both residential and commercial customers New residential charge: $9.40 a month, up 34 percent. New total $112.80 a year New commercial charge: $14.40 a month, up 20 percent. New total $172.80 a year Last increased: January 2002 Budget hearing When: 8:15 a.m. Friday Where: M.U.D. offices, 1723 Harney St. |
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