3.2.07

Water bills to drop; gas bills eventually
by Nancy Gaarder, Omaha World-Herald

Elkhorn residents and businesses will see a 33 percent drop in their water bills and eventually may save on natural gas bills now that they've been annexed by the City of Omaha.

That's because the community will be fully absorbed into the Metropolitan Utilities District.

Tom Wurtz, M.U.D. president, said the utility already provides Elkhorn with water, but the city is not within M.U.D.'s actual boundaries so the community pays a higher rate.

The Omaha annexation changes that. Bills that arrive in mailboxes in April will reflect a drop in water rates, he said.

For the average customer using 110,000 of gallons in a year, the savings will amount to almost $100. The average annual water bill would drop from $292.92 to $195.28.

The changeover in natural gas is not as automatic, because Aquila Inc., M.U.D.'s chief competitor, owns that system.

Wurtz said state law grants M.U.D. the right to take over the gas system, through condemnation if necessary, so the two utilities have begun discussions.

How much M.U.D. will have to pay to acquire the Elkhorn system isn't known, he said, but the price will reflect fair market value.

Elkhorn residents may see gas rates drop because M.U.D. is publicly owned and does not need to earn a return for shareholders as does Aquila.

Wurtz said he doesn't believe the purchase of the Elkhorn system will require a rate increase for M.U.D. customers. But, he said, since the price isn't known it's not possible to say how it will affect the budget.

Aquila is in the midst of being sold to a South Dakota utility. Alan Hersch, spokesman for Aquila, said the sale should not complicate any transfer involving Elkhorn to M.U.D.

About 3,000 Elkhorn water customers and 2,400 natural gas customers are affected by the change. The transfer also means Elkhorn residents will be able to vote for M.U.D. board members.

M.U.D. serves about 205,000 natural gas customers and 192,000 water customers in the Omaha area.

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