The Next Generation of Energy at CFU
CFU is evaluating building an energy center to provide a new local power source for our community.
As we look to the future CFU will work to maintain an energy portfolio that provides reliable and affordable energy for our customers. Our local power plants are over 50 years old and we know it is time to consider what comes next.
In 2025, CFU is evaluating building a local energy center that will utilize highly efficient reciprocating engines to produce power.
The proposed energy center would support community resiliency, complement the abundant renewable energy in our market, offer fuel flexibility and help keep energy costs low for customers.
Efficient and Reliable
Our new energy center would utilize reciprocating engines to produce electricity. The technology is highly efficient and produces lower emissions levels than our existing power plants. The engines help support the reliability of our electric grid because they can be turned on in minutes and ramp up or down quickly to respond to energy demand.
Strengthen Resiliency
CFU provides power to customers two ways; purchasing electricity from the regional energy market or generating electricity through the plants CFU owns.
Power plants in Cedar Falls allow CFU to continue to provide energy to our customers even when regional electric grid operations are impacted by a major storm event or extreme weather.
CFU’s current local generating facilities include two gas combustion turbines and the Streeter Station power plant on Utility Parkway, which can burn natural gas or coal. These facilities have nearly 88 megawatts of total generating capacity, but the equipment is aging. New generation in Cedar Falls would provide energy stability into the future.
Support Renewable Energy
Our community is fortunate to benefit from abundant wind energy in our region which is renewable and affordable. Today, 60% of the energy produced in the regional power market and distributed in Cedar Falls is generated from renewable resources.
While we welcome more renewable energy in the market, it remains important to provide reliable, affordable energy even when the sun isn't shining or the wind isn't blowing. Fast-starting reciprocating engines would allow CFU to continue to provide renewable energy when it is abundant but quickly provide an efficient backup energy source when wind and solar aren’t available and demand is high.
Fuel Flexibility
Most reciprocating engine plants today run on natural gas, but they also offer flexibility when it comes to fuel. These engines have the potential to burn low or no carbon fuels if they become more widely available.
Positive Financial Impact
CFU's power plants help control costs for our customers. When market prices are high, CFU can produce electricity, reducing the amount of expensive energy CFU needs to buy off the market to supply to customers. We expect a new reciprocating engine energy center would produce significant power market and capacity revenue and help keep rates low for customers.
Next Steps
There are many steps in the evaluation of a new generation resource. Preliminary analysis of the project has been completed and CFU is working on a detailed long-range plan that will include the total generation capacity that should be installed, required substation and transmission system improvements, a location for the facility and financial impacts.
The CFU Board of Trustees will continue to evaluate this potential new generation. Work is being done now to prepare the Electric Utility to be in the best financial position for the large investment. If the project moves forward, the utility will likely issue bonds to help pay for the new generating plant.