CFU Board Approves 2022 Utility Rates
on Tuesday, November 23, 2021
The CFU Board of Trustees recently set utility rates for 2022. Natural gas base rates and internet prices will stay the same in Cedar Falls next year. The Electric Utility will also keep rates steady for most residential and business customers. Cedar Falls residents will see modest adjustments to water rates and select TV rates.
Household water bills will go up by an average of $1.45 per month next year. A water rate increase of four to six percent will apply to all customer classes. Cedar Falls’ water rates are among the lowest in Iowa. The Water Utility must modify rates to keep pace with operating costs and pay for system improvements scheduled with city street replacement projects.
Natural gas base rates will stay the same for all customers next year. CFU’s base rates include infrastructure, distribution and administrative costs. While base rates will be steady, CFU cautions customers that higher natural gas market prices are expected.
Natural gas market prices have doubled from this time last year, and higher prices are forecasted to continue. This has increased the cost for utilities across the country to purchase natural gas provided to customers.
Natural gas market prices are reflected in the Purchased Gas Adjustment (PGA) on utility bills. 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. Utility bill impacts will vary by customer usage, winter temperatures and market conditions.
CFU has taken steps to protect customers from extreme natural gas price swings like our community experienced in February 2021. CFU has agreements in place that shield customers as much as possible from price volatility. We have worked with our gas supplier to stabilize daily and monthly gas prices.
There are steps you can take to reduce energy usage and save money. CFU offers cost-sharing rebates to help customers install energy-efficient equipment and make insulation and other thermal envelope improvements. For more information about energy-saving rebate programs and other tips, contact Energy Services at email@example.com or 319-266-1761.
A small number of governmental and non-profit entities will notice adjustments to their 2022 electric base rates. The changes are designed to better align rates with CFU’s cost of providing service to each type of customer. Affected customers will see an average base rate increase of less than 3%.
While electric base rates will not change for most customers, high natural gas market prices may also affect electric bills.
A growing portion of our country’s electricity is generated by natural gas. So when natural gas prices are high, electric market prices also tend to go up. Energy market costs are passed through to customers with a variable charge on utility bills, the Energy Cost Adjustment (ECA).
Internet, Phone & TV
Prices for internet and phone service plans will not increase in 2022. CFU has kept internet rates steady for six years, while making significant investments in the community’s broadband infrastructure.
CFU TV customers will see a rate change of $3 or $6 per month, depending upon the 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 2022 rates and fees, please call CFU at 319-268-5280 or visit cfu.net/terms.