United Power Announced Three New Power Purchase Agreements in July
United Power recently announced three new power purchase agreements in advance of its upcoming exit from its current wholesale power contract with Tri-State Generation and Transmission in May 2024. The cooperative has reviewed dozens of power supply proposals over the past several months to determine the most fiscally and socially responsible partners moving forward. Finding and securing established partners in the energy industry will not only ensure sufficient power supply is available for United Power’s growing load, but having multiple agreements also presents added flexibility for the cooperative’s power mix.
United Power tried to no avail to negotiate more contract flexibility and lower costs on behalf of its members. These costs are above market value, accounting for more than 70% of the cooperative’s operating expenses. Further, the existing contract locks United Power into a restrictive generation mix and prevents it from obtaining more than 5% of its total load from locally generated sources, such as utility-scale solar farms, gas-capture facilities, or even residential rooftop solar. The cooperative’s power purchase agreements announced in July demonstrate the freedom available by exiting its current wholesale power contract next year.
Two of the three agreements will facilitate a large portion of United Power’s expected load when the cooperative exits its current contract. The cooperative’s load is presently the largest among Colorado distribution co-ops — at more than 630 megawatts (MW) — despite serving the smallest geographic footprint. The third agreement is an innovative battery storage solution that will help mitigate costs when power demand is high — also known as peak demand.
“The energy industry is entering a period of revolutionary change,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “We have always put our members first and will continue to do so while advancing our position as an industry-leading distribution cooperative. Leaving our restrictive wholesale power contract affords us the flexibility and freedom to keeps rates competitive, join national power markets, and attract innovative energy partners.”
As the exit date approaches, questions about the cooperative’s future have started to circulate. It is important that members know the upcoming power supply transition will not impact your membership with the cooperative. United Power will continue as your power provider. New power suppliers will allow the co-op to better serve its members, who can expect the same commitment to delivering reliable and economical electricity to local homes and businesses. Office locations in Brighton, Coal Creek, and Carbon Valley will also still provide the service and support members have come to expect.
Guzman to Provide Key Power Block
United Power’s power purchase agreement with the Denver-based power supplier Guzman Energy locks in one-third of the cooperative’s power needs beginning in May 2024. The 15-year agreement features fixed wholesale power pricing that provides prearranged power supply costs and rate stability for members.
Guzman partners with cooperatives, municipalities, companies, and tribes across North America to customize energy portfolios that make economic and environmental sense.
New Utility-Scale Solar Addition
United Power signed a 25-year power purchase agreement to receive power from Whetstone’s Solar of Alamosa project in Southern Colorado. It will add 30 MW of renewable energy to the co-op’s diverse portfolio of generation resources beginning in 2024.
The solar farm sits atop one of the state’s highest elevation plateaus and receives some of the highest irradiance in the country. Built in 2012, project upgrades are scheduled throughout 2024 to achieve optimum power output.
Ameresco’s Largest Battery Project
United Power and Ameresco will partner to connect nearly 80 MW/315 MWh of battery storage capacity throughout the cooperative’s service territory. The groundbreaking project will allow United Power to balance its load while integrating renewable resources. Batteries will be located on eight different cooperative-owned substation sites in Adams, Broomfield, and Weld counties, storing and dispatching power during heavy consumption periods.