CFU Board Approves 2024 Utility Rates
The Cedar Falls Utilities Board of Trustees recently approved utility rates for 2024. Customers will see adjustments to electric, natural gas, water and TV rates. Prices for internet and phone service plans will stay the same.
2024 utility base rate increases total around $8 per month for an average residential customer.
Lower market energy and gas costs are projected to bring overall utility bills down in 2024.
Utilities across the country are operating in an environment of rapidly increasing costs for the equipment and materials we
need to maintain and improve our systems.
We are always working to control costs so we can continue to provide excellent value while still delivering reliable, safe and efficient services.
The Electric Utility will adjust base rates for customers next year. An average residential customer will see an increase of $4.20 per month. This base rate increase results in an estimated total average customer bill impact of 4.6%.
The base rate adjustment will keep pace with a rise in material and equipment costs. It also positions the utility to build a new local electric generating plant. The proposed highly efficient reciprocating engine plant would increase community resiliency and help support reliability. (More information about this project can be found at cfu.net/generation.)
Customers also have an energy charge on utility bills that is not impacted by CFU’s base rate adjustment. The energy charge is driven by market prices and is a pass-through to customers. Projections for this winter indicate that market energy rates will remain low, which will help keep overall electric bills steady for customers.
Natural gas base rates will increase in 2024. An average residential natural gas customer will notice an increase of $1.83 per month. This base rate increase results in an estimated total average customer bill impact of 2.1%.
The Gas Utility plans for increased capital spending due to the installation of new gas mains and relocation of infrastructure in conjunction with city street reconstruction projects.
CFU gas customers also have a commodity charge on utility bills that is not impacted by CFU’s base rate adjustment.
The gas commodity charge fluctuates up and down based on the wholesale price CFU pays for gas and related transportation costs and is a pass-through to customers.
The cost of gas is down significantly after peaking in 2022, and lower prices are projected throughout the upcoming heating season. This market shift could result in substantially lower utility bills for Cedar Falls gas customers. Utility bill impacts will vary by customer usage, winter temperatures and continued market fluctuations.
The Water Utility will also adjust rates for most customers next year. An average residential customer will see an increase of $2.30 per month. Overall, the base rate increase averages 9.6%.
The rate increase will help fund water main replacements in conjunction with significant city street reconstruction projects,
such as work on Main Street.
Internet, Phone & TV
Prices will stay the same for internet and phone customers in 2024. CFU has held internet rates steady since 2015, while continually upgrading the network and customer speeds.
CFU TV customers will see an increase of $4 or $7 per month, depending upon their service plan. TV rates must be adjusted to keep pace with the increase in fees CFU pays to network owners.
Rate changes take effect in January. For a schedule of all 2024 rates and fees, please call CFU at 319-268-5280 or visit cfu.net/terms.