Much is being written these days about increasing electric demand in the face of declining central power stations, such as coal plants, and how the electric industry will manage this coming onslaught. People are especially concerned that data centers, driven by advancements in artificial intelligence (AI), will cause major problems for the electric grid.
United Power has been blessed with growth for nearly 20 years, and that trend is continuing. One only has to drive around our service territory to see what that growth looks like. Last summer we set a new all-time peak of nearly 650 MW, and this past December we hit nearly 500 MW, making us the largest electric distribution cooperative by load in Colorado and the third largest utility after Xcel and Colorado Springs Utilities.
We added nearly 3,300 meters in 2024 and our monthly electric load has increased consistently. More than 7,600 electric vehicles are registered in our service territory. Whether it is the coming of the new BNSF Intermodal Center in Hudson/Lochbuie, expanding existing data centers, or new residential developments, your cooperative is keeping up.
Recently, the Colorado Air Quality Control Commission adopted rules that require midstream gas suppliers reduce greenhouse gasses by 20.5% as compared to a 2015 baseline by 2030. This will require electrification of the oil the gas fields — a process United Power began several years ago. We are partnering with our oil and gas members to help them meet this mandate.
Our service territory is desirable and we regularly receive inquiries from developers and large loads known as hyperscalers (i.e., data centers). These facilities require large electric loads and heavy demand around the clock. The good news is partnering with them will provide additional backup capabilities, as well as allow us to purchase more power at lower costs for all members. Our Key Accounts Advisors are handling those requests and working closely with the engineering and power supply teams to ensure we can meet their energy demands. Millions of square feet of commercial and industrial space has also been added in just the past few years, especially along our interstate corridors.
While some utilities are turning down loads and wringing their hands over the increased demand, United Power believes it is critical to support our members where they are and when they need us. In order to do this, we follow the “LIT” process that involves closely working with potential loads as soon as practical. What does “LIT” involve?
- Location. Not every location is suitable to be supplied in a short period of time. Large loads that are moving into our service territory, such as data centers, are able to work with our team to locate areas where we can reasonably provide service within their timeframe.
- Investment. Years ago, the United Power Board of Directors decided that “growth pays,” meaning any capital cost is born by the company or developer. This protects members from costs to add facilities — and yet helps lower other costs as we spread overhead across more members.
- Timing. Advanced planning is crucial to successfully adding infrastructure and we work closely with potential new members to get ahead of critical items such as ordering transformers, preparing the ground, and making sure we have capacity to handle the new load.
We are excited about this future and will continue to support all members, large and small. Anticipating and planning for electrification is at the heart of Our Cooperative Roadmap.
As always, feel free to reach out to me personally with any questions or comments.