Sheldon voters defeated a proposal to establish a municipal gas system.
The unofficial vote Tuesday was 792-530 against the proposal to buy the existing system currently owned by MidAmerican Energy, which will continue to serve the city of 4,900. A simple majority was needed for passage.
"We are grateful for the showing of support from our customers in Sheldon," MidAmerican Energy spokesman Mark Reinders said. "We understand the city's interest in developing new sources of revenue, but clearly the citizens have indicated they think starting a municipal gas utility is not the way to go to accomplish that."
About 37 percent of eligible voters cast ballots.