Metropolitan Utilities District receives $25.2 million federal grant for natural gas infrastructure improvements

Metropolitan Utilities District was selected to receive a $25.2 million grant through the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant program for the 2023 funding cycle.

The grant was announced today during an event at M.U.D.’s headquarters attended by M.U.D.’s Board of Directors, DOT officials, members of the Nebraska congressional delegation and the City of Wahoo, which also was a grant awardee.

The NGDISM grant program, established by President Biden’s historic Bipartisan Infrastructure Law, is aimed at mitigating safety risk and methane emissions from older natural gas distribution systems. This is the second award received by M.U.D., which was selected for a $10 million grant last year.

“On behalf of our customer-owners, we very much appreciate this much-needed funding that goes toward M.U.D.’s ongoing program to update critical natural gas infrastructure in the communities we serve,” said M.U.D. Board Chair Jim Begley.

Through the District’s infrastructure replacement program, the low-pressure cast iron gas mains and services are being modernized with safer and more efficient high-pressure plastic gas pipe. Many of the pipes targeted to be replaced are in older sections of M.U.D.’s service area and within historically disadvantaged communities.

“Neighborhoods in project areas see a direct economic benefit, including increased property values, improved safety and reliability of their natural gas services,” Begley said.

Replacing cast iron pipes also has an environmental impact by reducing gas leaks and methane emissions.

“This grant funding will immediately benefit our program,” said M.U.D. President Mark Doyle. “Our employees, IBEW 1521 partners and contractors continue to efficiently update our critical infrastructure to provide life-essential services to our community.”

M.U.D.’s infrastructure replacement program began in 2008, prioritizing the replacement of 560 miles of cast iron gas mains. So far, more than 450 miles of main and more than 50,000 gas services have been replaced with a plan to replace all cast iron mains by the end of the decade.

Gas rates include a monthly fee to provide long-term funding for the program. M.U.D. also issues bonds, as needed, to help fund infrastructure replacement. The utility continues to seek other funding opportunities, including additional grants and low-interest loans that are in the best interests of its customers and ratepayers.

For more information about M.U.D.’s infrastructure replacement program, including an interactive map of current projects, visit mudomaha.com and search for Projects in Your Neighborhood.

About Metropolitan Utilities District: The mission of the Metropolitan Utilities District, headquartered in Omaha, Nebraska, is to provide safe, reliable and cost-effective natural gas and water services to our community. Overall, the District serves more than 600,000 people in the metro area. The District is the fifth largest public natural gas utility in the United States, serving customer-owners in Omaha, Bennington, Fort Calhoun, Springfield, Yutan and Bellevue. The District also provides safe, 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.