M.U.D. Advances Water and Gas Infrastructure Upgrades in 2026 Budget Plan

The Metropolitan Utilities District (M.U.D.) Board of Directors today approved the 2026 budget, which continues funding for critical infrastructure investments that provide safe, reliable and cost-effective natural gas and water services to the region’s growing communities. The Board also approved natural gas and water rate increases to support operations and essential system improvements.

For 2026, the average residential customer will see a projected 2.9% net increase, or $33.06 annually, on their combined natural gas and water bill. Individual bills will vary depending on weather, consumption and the pass-through cost of natural gas.

• The average residential natural gas customer will see a 1.8% increase, or $11.89 annually, based on budgeted usage of 747 therms.
• The average residential water customer will see a 4.5% increase, or $21.17 annually, based on budgeted usage of 109 CCF (81,532 gallons).

The new rates take effect January 2, 2026.

As a reminder, M.U.D. also serves as a billing agent for local municipalities. Rates for municipal sewer and/or trash services shown on monthly bills are established by each municipality, not by the M.U.D. board.

Building and Maintaining Critical Gas and Water Systems

Since 2008, M.U.D. has replaced more than 478 miles of gas mains. And over that same timeframe, District crews and contractors replaced or assessed 168 miles of water mains. The District remains on track to eliminate all remaining cast iron gas mains by the end of the decade, with most of this work funded through the federal Natural Gas Distribution Infrastructure Safety and Modernization grant program.

 The District has made numerous proactive investments including installing more corrosion-resistant materials, expanding leak detection technologies, conducting pipe condition assessments and targeting high-priority replacement segments in order to address system reliability. In 2026, M.U.D. plans to replace or assess more than 17 miles of water main.

“Omaha and the surrounding communities continue to grow, and our infrastructure must grow with them,” said M.U.D. President Mark Doyle. “This budget supports that progress through targeted, data-driven investments in our gas and water systems.”

Lead Service Line Replacement Program

Launched in 2024, the Detect. Correct. Protect. Lead Service Line Replacement Program assists customers at no direct cost to replace lead or galvanized steel service lines to protect them from lead in drinking water. To date, M.U.D. has replaced more than 910 of these lines, and the goal for 2026 is to replace 1,032 lines.

The total projected cost to replace all lines identified in the program is estimated to be approximately $160 million. The District continues to seek state and federal grants and low-interest loans to minimize rate impacts and fund future phases until all lines are replaced by 2035.

Upgrading Facilities and Strengthening Reliability

Progress continues on significant facility improvements, including the renovation of the District’s existing construction center and the second construction center, scheduled to open spring 2026. These facilities support long-term growth, business continuity and ongoing infrastructure programs.

M.U.D. is also strategically investing in its three water production facilities, with capital plans funded primarily through long-term bond issuances to align costs with the multigenerational benefit of these improvements.

Managing the Cost of Natural Gas

M.U.D. employs long-term supply contracts and on-site storage to reduce natural gas costs for customers. Approximately 68% of natural gas purchases are made through prepaid agreements expected to save customers $16 million in 2026. A transportation and pipeline storage agreement with Northern Natural Gas is projected to save an additional $27 million.

A major upgrade to the District’s liquefied natural gas plant was completed in spring 2025, expanding capabilities and improving long-term reliability. Increased storage capacity helps reduce reliance on high-priced spot market purchases during periods of peak demand.

Affordability and Customer Assistance

Customers experiencing financial hardship are encouraged to contact Customer Service at 402.554.6666 to discuss payment options. Additional resources—including Budget Billing, financial assistance programs and conservation tips—are available at mudomaha.com.

“We know affordability matters for our customers. That’s why we aggressively pursue grants, long-term contracts and cost-saving strategies to limit the impact on customers,” Doyle said.

In the 2025 Memphis Light, Gas and Water Survey, M.U.D. ranked fourth lowest in residential natural gas costs and 15th lowest in residential water costs among 40 participating utilities.

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About M.U.D.: The mission of M.U.D., headquartered in Omaha, Nebraska, is to enhance quality of life by delivering safe, reliable and cost-effective natural gas and water, essential for today and future generations. Overall, M.U.D. serves more than 600,000 people in the metro area. M.U.D. is the fifth largest public natural gas utility in the United States, serving customer-owners in Omaha, Bennington, Fort Calhoun, Springfield, Yutan and Bellevue. M.U.D. also provides high quality drinking water to customer-owners in Omaha, Bellevue, Bennington, Carter Lake, La Vista, Ralston, Waterloo and the Papio-Missouri Natural Resources District (which supplies water to Fort Calhoun). For more information, visit mudomaha.com.