MUD 'will not approve' $16 million streetcar dispute with City of Omaha
With plenty of numbers thrown around in the streetcar fight between the City of Omaha and one of the state’s largest utility companies, one number you haven’t seen is what all this might cost the average homeowner, well now we know—but keep in mind a spokesperson for the Metropolitan Utilities District insists, “We are working to ensure that no rate increase will be necessary due to the streetcar.”
According to figures supplied to News Channel Nebraska by MUD, it appears that the worst-case scenario would find MUD residential customers paying an additional $40 a year, or $4.80 per month, for both gas and water—a one-time increase.
As we’ve reported, MUD and the city continue to spar over who’s paying to rip up the Omaha streets where the streetcar will run. In early December, Stothert's office said, "Many of MUD's lines in the urban core are 100-plus years old and will need to be replaced with or without the streetcar." Just a few days ago MUD reported a water main “down for repairs” along Farnam St. between Turner Blvd and 33rd St., part of the streetcar’s western route.
Last month Omaha Mayor Jean Stothert and Dave Friend, a member of the MUD Board of Directors had clearly different views of the dispute.

Mayor Jean Stothert, Omaha (R) KFAB Radio January 11, 2023: “They (MUD) gave us an estimate of about $20.5 million that they say it will cost them to replace the lines because of the streetcar. We have yet to get any information from them as how they came up with this number. I’m very, very confident that we can come up with a resolution with MUD that they will not have to raise their rates. They shouldn’t be raising their rates because of the streetcar.”
Dave Friend, MUD Board of Directors, KFAB Radio January 12, 2023: “We’ve already met them part way and apparently, they want us to pay the whole $20.5 million. Here’s what I can tell you, Scott. That ain’t going to happen.”
Friend’s “part way” is the MUD Board’s decision to pay $4.2 million, leaving $16.3 million up to the city.
MUD spokesperson Tracey Christensen tells NCN that $4.2 million follows the Board’s decision to “re-prioritize infrastructure work within the Streetcar project area.”
She also notes a “hypothetical calculation” regarding that $16.3 million. Christensen says there would be a “one-time/one-year” charge to residential customers, with water jumping 17 percent ($34), while gas would increase 6 percent ($6).
But again, Christensen says when it comes to that $16.3 million, “The District’s Board of Directors has made it clear that it will not approve such an expenditure.”
All this comes just hours before a Tuesday public hearing in Lincoln on legislation that would find the city footing the bill.
According to State Sen. Lou Ann Linehan’s proposal (LB691), “If a streetcar or fixed rail system is constructed in a city, then the owner would have to pay for all water utility and natural gas work required for its construction.”