Cedar Falls Utilities
| Company type | Public utility |
|---|---|
| Industry | Utilities |
| Founded | 1888 |
| Headquarters | Cedar Falls , United States |
Area served | Cedar Falls, Iowa |
| Products | Municipal water service, electric power generation and distribution, natural gas services, cable television, Internet connectivity, telephone services |
| Owner | City of Cedar Falls |
| Website | www |
Cedar Falls Utilities (CFU) is a public utility owned by the city, providing services to Cedar Falls, Iowa. It is affiliated with the Iowa Association of Municipal Utilities (IAMU). CFU delivers municipal water service, generates and distributes electric power, offers natural gas services, and supplies combined cable television, Internet connectivity, and telephone services to nearly 19,000 local residents and businesses, including more than 14,900 broadband subscribers.
The 1880s
The origins of Cedar Falls Utilities trace back to 1888 when the city established a municipally owned waterworks system known for its remarkably pure spring water.
The 1890s
During the late 1890s, Citizens Gas and Electric Company from Waterloo, Iowa, received a 15-year franchise to generate electricity for street and residential lighting. Although there was public advocacy for a community-owned electric company to prevent monopolistic control, efforts shifted toward founding a municipally controlled gas plant. A brief franchise was issued to George A. Dunkle of Chicago for gas production and distribution but was terminated following a fatal accident. Subsequently, Citizens Gas and Electric Company was awarded a 25-year franchise to provide gas services in Cedar Falls.
The 1910s
By the early 1910s, dissatisfaction with inadequate street lighting led residents of Cedar Falls to approve a bond in 1913 aimed at creating a municipal power plant and distribution network. Electricity generation commenced on April 1, 1914, with initial customers served shortly afterward. In June of that year, the municipally owned electric utility secured a significant contract to supply power to Iowa State Teachers College (now University of Northern Iowa), establishing an important early institutional client.
The 1920s
Growing public discontent over escalating gas prices charged by Citizens Gas and Electric, coupled with a deadly gas explosion, increased support for a city-owned gas utility. An engineering consultancy recommended establishing municipal gas manufacturing and distribution facilities. Meanwhile, the existing public waterworks and electric services continued operating effectively. By 1926, the original power plant's construction costs had been fully amortized. In March 1928, voters overwhelmingly approved the creation of a municipal gas utility.
The 1930s
By 1936, rising electricity consumption threatened to surpass the municipal utility’s generating capacity. Although hydroelectric power from the Cedar River was considered as an economical option, recent drought conditions and low river flows led the utility to construct a 2,500-kilowatt steam turbine plant instead, which was completed in 1937.
In the late 1930s, after damage occurred at the Cedar River swimming beach, the utility transformed its artificial lake into a public swimming pool. The costs for maintenance were shared between the lighting fund and the city’s recreation fund to support both infrastructure upkeep and programming.
The 1940s
Starting in 1939, surveys were conducted to retrofit a rebuilt dam on the Cedar River for hydroelectric generation. A new plant with a capacity of 1,200 kilowatts began operations in February 1941. During its first full year of operation, it supplied approximately 60% of the city’s electricity due to high water levels—a peak output not matched thereafter.
Following World War II, demand increased sharply as many young veterans relocated to Cedar Falls under the G.I. Bill. The existing water and electric infrastructure became insufficient for this growth, prompting plans for modernization of electric generating equipment and water pumping systems. By the late 1940s, discussions emerged about appointing a mayor-selected board of trustees to manage utility operations amid rapid urban expansion.
The 1950s
During the 1950s, Cedar Falls Utilities experienced considerable growth. Midway through the decade, natural gas distribution commenced, and by 1956, nearly 6.1 million gallons of water were being pumped. To accommodate increasing electricity consumption, a 5,000-kilowatt turbine-generator was completed in 1955. This was followed in 1956 by a 10,000-kilowatt power interchange agreement with Iowa Public Service Company. By 1959, efforts to expand electrical distribution continued alongside the introduction of a street lighting initiative. That year, the utility produced 94.2% of its electricity internally, with hydroelectric power supplying 5.47%, while purchased power represented approximately 0.25%.
The 1960s
With the population growing by nearly 7,000 compared to the previous decade, both the electric and gas divisions underwent rapid expansion. A new office facility opened in 1960, featuring a community room regularly utilized by local organizations for meetings. During the Cuban Missile Crisis, Cedar Falls Municipal Utilities was designated as one of three fallout shelter locations.
The newly established Board of Trustees made extending electric service a top priority. Late in 1960, plans were presented for a 16,500-kilowatt steam turbine-generator; construction began in March 1962 and resulted in Cedar Falls’ tallest building. A new Gas Distribution center became operational in late 1963, and by 1965 natural gas was heating approximately 80% of residences.
In 1966, Cedar Falls Utilities unveiled its updated logo and installed two and a half miles of water main lines that supplied over 780 million gallons annually. By 1968, the utility had commissioned Iowa’s largest combustion engine with a capacity of 25,000 kilowatts. The community swimming pool was removed during the summer of 1969 to make room for expanded coal storage.
General managers 1958–2018
In March 1958, John P. Pace—an electrical engineering alumnus from the University of New Mexico—was appointed as the Utility’s inaugural CEO. Later that year, an August special election transferred governance from the city council to a Board of Trustees appointed by Cedar Falls’ mayor. The first Board assumed office on September 1, 1959.
Economic development
The Municipal Communications Utility operates as a community-owned entity funded independently through rates established by a local board of trustees, thereby eliminating any public tax obligations. CFU actively participates in municipal economic development initiatives that broaden its customer base. In response to demands from local businesses, CFU introduced phone service in May 2016.
During the late 1960s, the utility donated land for the establishment of the Cedar Falls Industrial and Technology Park and has since enhanced its communications offerings—including cable television, telephone services, and broadband Internet—as a vital element of the city’s economic development plan. Following a referendum in 1994 that received over 70% voter approval, CFU now provides multiple service packages ranging from economical to premium options to satisfy diverse customer requirements and stimulate community advancement. Collectively, subscribers to CFU save more than $4 million annually compared to average communications costs in similar cities.
Telecommunications
Cedar Falls Utilities (CFU) utilizes a sophisticated FTTx network to provide fast internet, telephone, and video solutions. CFU establishes direct fiber connections in Chicago, Kansas City, and Des Moines, partnering with leading global networks such as Level 3 Communications, Cogent Communications, and Hurricane Electric.
Renewable energy
From 2008 through 2016, CFU achieved a 33% decrease in coal-based electricity generation, primarily by expanding its use of solar and wind power. Over a span of thirty years, CFU has introduced numerous energy efficiency programs including local building regulations, on-bill financing options, rebates for air conditioning units, pilot projects for smart thermostats, and early endorsement of the Energy Star Verified Installation initiative.
Wind energy
As one of the pioneering municipal utilities investing in renewable energy in the U.S., CFU joined forces with six other Iowa utilities in a wind project launched in 1998. By 2016, wind power contributed 28% of Cedar Falls’ electricity supply, a significant increase from just 2% in 2006.
Solar energy
Initiated in April 2016, CFU’s solar farm stood as Iowa’s largest community solar endeavor at the time, engaging more than 1,200 local residents and businesses. Located on an eight-acre site near Prairie Lakes Park—land generously provided by the City of Cedar Falls—the solar installation boasts a total capacity of 1.5 MW.
Water
- At the IA-AWWA Annual Conference in 2013, CFU earned top honors for Best Tasting Water in Iowa from the Iowa Section of the American Water Works Association (AWWA).
Electric
- In 2011, CFU was honored with the Award of Continued Excellence (ACE) by the American Public Power Association for its ongoing dedication to innovative energy solutions and support for research and development enhancing efficiency and renewable energy.
- The American Public Power Association bestowed two accolades upon CFU in 2016: the Diamond level Reliable Public Power Provider award for achieving 99.996% reliability with an average outage time of just 17 minutes, and the E.F. Scattergood System Achievement award recognizing consistent high performance.
Telecommunications
- Supported by CFU, Cedar Falls became Iowa’s inaugural "Gigabit City" in 2013, offering internet speeds up to one gigabit per second.
- In October 2014, Google designated Cedar Falls as Iowa's leading city for e-commerce.
- On January 14, 2015, President Barack Obama acknowledged Cedar Falls and CFU as a small community rivaling private companies by delivering world-class broadband internet speeds approximately 100 times faster than the national average. He emphasized how competition benefits telecommunications pricing and service quality. On that same day, privately held Mediacom voiced concerns regarding President Obama’s comments about CFU.
- In 2017, CFU received the Calix Innovation Award from Calix, a company specializing in cloud-based products and access networks, recognizing exceptional creativity in deploying superior broadband services using Calix technology.
Safety
- The Iowa-Illinois Safety Council Chapter of the National Safety Council honored CFU with an "Incident Rate Excellence" award in 2011.
- For its exemplary safety record in 2011, CFU was presented with the Midwest Energy Association (MEA) Accident Prevention Award in 2012.
- On July 20, 2013, Iowa Council 61 of The American Federation of State, County, and Municipal Employees (AFSCME) commended CFU for prompt and professional actions that resulted in saving a life.
Employer of Choice
Each year, the Waterloo-Cedar Falls Courier honors Cedar Valley organizations that demonstrate exceptional commitment to enhancing employee well-being. Over the last ten years, CFU has consistently been acknowledged by its workforce with multiple nominations:
- September 2011 – Recognized for fostering an environment where staff members feel respected and valued.
- September 2012 – Commended for providing superior health benefit offerings.
- August 2014 – Nominated for surpassing customer expectations while maintaining high employee satisfaction.
- August 2015 – Acknowledged for prioritizing customer service, cultivating employee engagement, and upholding financial accountability.
- September 2017 – Highlighted for its adaptable work policies and support of a family-oriented workplace culture.