Tracking Natural Gas Market Prices
CFU cautions customers that higher natural gas market prices are expected this year.
The U.S. Energy Information Administration predicts that U.S. households that use natural gas for space heating will spend approximately 30% more this heating season than last year.
In addition the operator of the pipeline used to transport gas to Cedar Falls is planning a significant gas transportation rate increase.
Like many utilities CFU has a variable charge on utility bills that reflects the market price of gas and the cost to transport gas to Cedar Falls. The Purchased Gas Adjustment (PGA) fluctuates up and down based on the wholesale price CFU pays for the gas it provides to customers.
CFU does not mark up what we pay for natural gas. The cost of the gas commodity is a pass-through to customers so if gas market costs go up or down so does the PGA.
CFU has agreements in place that shield customers by reducing price volatility including locking in a portion of our gas supply at a fixed price.
Higher energy costs do not affect CFU’s base rates which are set by the Board of Trustees and include infrastructure and administrative costs.
Utility bill impacts will vary by customer usage winter temperatures and market conditions.