A member recently asked a very good question about the price of utility-scale solar and how that related to the overall plan we have for the future of our power supply, particularly in light of the new 162 MW Mountain Peak Power natural gas plant being constructed in Weld County (where we also have 11 MW of battery storage).
What drove the question was the announcement of our latest solar plant, the 150 MW Byers Solar Farm being built in Adams County with cooperation from one of our long-time partners, Silicon Ranch. The question also reflected on the decision we executed last year to regain our independence as a cooperative.
The raw cost of energy is just one piece in the puzzle of activities that guide the operations of an electric distribution cooperative like United Power. Energy needs to cover every minute of every hour of every day, with enough back-up capacity to ensure the lights stay on and our economy keeps flowing. Buying energy and capacity requires a mix of supply options over a variety of contracts, and United Power — with the support of TEA Solutions, a national energy marketing and risk management services provider for community-owned utilities — works to balance the system both in real time and over the course of years.
Determining power supply is a multi-factored math and physics activity, coordinated at the local and regional levels. It involves not just the power supply but transmission, as well. The reality for much of the West is that congestion on the transmission system is a challenge for planning and operations, much like getting to a Broncos game in highway congestion.
We are receiving numerous well-priced power supply offers for the coming years. Unfortunately, the pathway to “bring it home” limits our ability to take advantage of some of best deals on the market. There are plans for new transmission across the West — plans that we support — but the harsh reality is that it will take a decade or more to develop, permit, and build. We simply cannot wait and hope for new transmission in time to meet our growing demand.
Given these challenges, United Power has devised a three-pronged approach to maintain power supply for our growing member base over the coming years, laid out in the recently-revised Our Cooperative Roadmap (Roadmap).
First, we are focusing on hyper-localization, which keeps generating resources inside our service territory. Local power means less need for transmission and fewer line losses (energy lost as electricity is transported from point-to-point due to resistance). Plus it contributes to local tax revenue. The Byers Solar Farm is a great example.
Second, we are continuously improving our system as we evolve into a distribution system operator, which will allow us to use what we already have more effectively. Adding battery energy storage systems merges these first two concepts. We now have nearly 20% of our load in either four- or six-hour storage systems.
Finally, we are preparing for the Southwest Power Pool (SPP) West, a power market that will allow us to buy and sell power more efficiently. This is planned for Spring 2026, and United Power will be ready.
We are living in a more dynamic energy market than any time in history, with more options than ever before. There is no single source of power that will supply all of our needs. That is why United Power truly believes in and acts on an “all of the above” energy strategy. Whether it is supporting nearly 13,000 residential solar systems, signing 30-year solar purchase power agreements, joining a market, or buying output from natural gas plants, the team works every day to anticipate and plan for your power needs. Just as we need a variety of transportation options — bicycles, cars, trucks, trains, and planes — so, too, do we need options in power supply.
As always, please feel free to reach out to me personally with any questions or comments. If you belong to a group that would like a United Power team member discuss the Roadmap at an upcoming meeting, please contact us.