August 5, 2010

MDU cuts a deal for Underwood

By Michael Johnson, Editor

Underwood residents will likely get a good deal on a new MDU gas line in the Repnow-Mees Addition after a meeting on July 28. City commissioners, residents and MDU representatives discussed a future gas line to trench into the addition in Underwood after the idea was brought up in March. Right now there are three residents that would like to see the gas line come out into the addition but there was some apprehension when they realized they would have to pay $1,400 a piece to have the utility. Members of the Hunt, Snyder and Bichler families were at the meeting and all expressed interest in having gas to their homes. MDU representatives explained that there is a formula they follow when bringing a gas line into a new area, which looks at the maximum allowed investment (MAI). In other words, if the cost to install is more than the expected revenue from the user of the utility, MDU may not bring gas to the homeowner or the homeowner will have to pay a contribution to MDU for the install. The gas line across the addition is about 1,100 feet and would cost homeowners about $4,200 to install.



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