Natural Gas Market Prices Impact Winter Heating
Cedar Falls Utilities cautions customers that high natural gas market prices may impact utility bills during the upcoming winter. We are closely watching natural gas prices to help you plan.
As you’ve likely heard on the news natural gas market prices are up significantly across the nation. This has increased the cost for utilities to purchase the natural gas provided to customers.
In addition the operator of the pipeline used to transport gas to Cedar Falls and other utilities in our region is planning a significant gas transportation rate increase.
The U.S. Energy Information Administration predicts that U.S. households that use natural gas for space heating will spend approximately 30% more than last year. Utility bill impacts will vary by customer usage winter temperatures and continued market fluctuations.
Like many utilities CFU has a variable charge on utility bills that reflects the market price of gas and the cost to transport the 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.
Higher energy costs do not affect CFU’s base rates which include infrastructure and administrative costs.
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.