No one likes rate increases. Full stop.
By the same token, maintaining a financially healthy cooperative is a critical part of United Power’s mission. Our staff — and your Board of Directors — work diligently to make sure rates are matched closely with the utility’s operating costs. It is those growing costs that require the Jan. 1 rate increase.
The supply chain for many products, including those we use at the cooperative, have still not recovered from the pandemic, even before tariffs began impacting costs. Power poles are up 25-40% since 2020, transformers have doubled in price, copper wire is up 50%, and construction labor has increased by nearly 40%. Uncertainty in power generation, and which resources will be in favor from one administration to the next, is making generators and power providers hesitant to commit to long-term pricing. And, to further complicate the issue, more large power generating stations are coming offline, forcing capacity prices upward. It is more difficult for companies to commit to pricing when tariffs are in flux and off-shore/near-shore manufacturers that make many of the products utilities use are not sure if they will be able to sell products in the U.S.
United Power has worked to build a portfolio of hyper-localized projects to manage our wholesale power costs, believing that is the most logical and efficient solution in an uncertain financial environment. We have one of the largest distributed battery systems in the nation and recently opened the newest, most efficient gas plant in the country. We continue to contract for low-cost solar energy. In October, we committed to an additional 200 megawatts of solar coupled with 150 megawatts of battery storage, and we look forward to a power market coming to Colorado in April.
We are also committed to helping our members better manage their usage and bills through a variety of programs. We have dramatically reduced our peak energy hours, the time of day when our wholesale energy costs are at their highest, allowing members to shift demand and save on bills. The peak window has shortened from 2-10 p.m. to 5-9 p.m., a more rational window that makes it easier for members to navigate. Rates before and after the new peak are approximately 6.7 cents. An analysis of 2024 aggregated usage data shows that many residential and commercial members could benefit by moving to a time of use rate. Click here for detailed information about the 2026 rate change. Members can also reach out to an energy management specialist for help analyzing their energy usage and selecting the best rate to save on costs. Additionally, tools to help improve your energy efficiency are available here.
The story is the same across Colorado and the rest of the country. Virtually every utility (electric, gas, and water) is facing the challenge of holding down costs as long as possible. United Power has only had one year of rate increases (2024) during my nearly five years as CEO. The Board intentionally held back on raising rates during COVID, understanding the impact on an already challenged local economy. We do not take the matter of raising rates lightly, and we commit to managing your investments well.
As your cooperative and a key member of the communities we serve, United Power works every day to keep the lights on and power flowing in the most reliable and cost competitive way possible. We realize even small increases are challenging for many of our members and stand ready to help people manage their energy wisely.
As always, please feel free to reach out with any comments or questions. It is my honor to serve as your President and CEO and to lead this team of amazing people.