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How does MUD's 'budget plan' billing work?

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OMAHA, Neb. (KMTV) — Prices seem to be rising everywhere we look. One talker lately: Water and gas bills from the Metropolitan Utilities District.

Some customers say they've seen a surprising increase in their 'budget plan' billing, which is adjusted annually in order to keep the bill consistent from month-to-month.

MUD announced its 2023 budget and projected annual cost increases, for the average user, of about $26 for gas and $18.50 for water. But some with those budgeted plans noticed their recent adjustments are more than that each month, and much more over the course of a year.

Kathy Kudron of Omaha says nothing has changed recently with how she uses gas and water.

"I knew things were going to be going up, especially utilities," she said. But the jump in her budgeted MUD plan floored her.

It went from $155 to $197. On a fixed income, she said a $42 increase is tough to swallow.

"I'm on social security only," she said. "To me, that (the $42) was a bug jump. I was going to have to juggle things around. That also means maybe you don't get your full amount of groceries.

She's hardly alone. Similar stories are all over the neighborhood-focused social media app Nextdoor.

One reported an increase from $199 to $259. Another, $190 to $265.

Why can the budgeted plans change so drastically?

MUD said they "respectfully" declined an interview for this story today. They were only interested in a story solely focused on Saturday's Heat The Streets fundraiser, which benefits utility assistance programs.

But they said via email the budgeted amount is based on your use divided over a 12-month period, adjusted for average temperatures and water use and projected rate changes. Plus, a credit or debit is applied based on if you were over or underpaid the prior year.

"Since it is based on average temperatures, temperature extremes may cause changes in usage patterns," an email from customer experience VP Stephanie Mueller said.

Gas prices change monthly

Gas prices change monthly, she said. People paying month-to-month see that immediately, but folks with the budgeted plan pay a consistent price every month based on what MUD predicts.

Thursday, the rate dropped significantly compared to February's rate, a 31% decrease. "This shows a reduction in gas price as we start to move out of winter," Mueller said. "The largest component of gas price is based upon pipeline costs and is variable and is dependent on demand, storage and weather conditions."

Heat The Streets and Walk for Warmth

The annual fundraiser hosted since 2007 by MUD and the Omaha Public Power District is Saturday at 9 a.m.

On Friday morning, Mueller said they had about 850 people set to participate, short of their goal of 1,000.

"The event is hosted in the cold winter months to bring attention to those who struggle to keep the lights on and heat their homes," Mueller wrote. "However, utility assistance is a year-round need."

Funds raised are administered by the Dollar Energy Fund and split between the utilities. To be eligible for assistance, MUD says applicants must provide verification of a past-due balance or disconnection notice and "be experiencing an acute financial crisis due to a verifiable emergency (illness, death, layoff, etc.) and have exhausted alternative resources." Plus, to be eligible, you must have an income at or below double the federal poverty level or the household contains one or more individuals who are 60+ and the only source of income is social security.

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