• Terms outline Settlement Agreement for power purchases and sale of utility assets.
• Following execution of a Settlement Agreement, United Power and Tri-State will file to dismiss litigation in the Adams County District Court.
• Settlement Agreement does not address contract termination payment proceeding before federal regulators.

Brighton/Westminster, Colorado – On Nov. 1, 2023, United Power, Inc. (United Power) and Tri-State Generation and Transmission Association, Inc. (Tri-State) executed a Term Sheet that sets forth terms for the two utilities to make good faith efforts to execute a formal Settlement Agreement involving power purchases and the sale of utility assets from Tri-State to United Power. 

The Term Sheet provides for a mutual release of claims and that the parties will cooperate to complete a Settlement Agreement and related agreements by Dec. 8, 2023, at which time United Power and Tri-State will jointly file for dismissal of the lawsuit, with prejudice, pending in the Adams County District Court.   

On Nov. 1, 2023, Tri-State’s Board of Directors unanimously approved the Term Sheet. On Nov. 6, 2023, United Power’s Board of Directors unanimously approved the Term Sheet. 

Tri-State and United Power will continue to take actions to ensure United Power’s timely exit by May 1, 2024, upon payment of a contract termination payment, with the amount to be set by the Federal Energy Regulatory Commission (Commission).  

The Settlement Agreement will not address the Commission proceeding related to the contract termination payment that members will pay to Tri-State to terminate their contracts early and withdraw from membership. The parties expect the Commission to issue a decision in that proceeding shortly.  

No further public comments will be made about the Settlement Agreement.

About United Power

United Power is a member-owned, not-for-profit electric cooperative, delivering electricity to homes, farms, and businesses throughout Colorado’s northern Front Range. The cooperative is one of the fastest-growing electric co-ops in the nation, and in June 2021 joined the elite ranks of cooperatives serving more than 100,000 meters. The 900-square mile service territory extends from the mountains of Coal Creek and Golden Gate Canyon, along the I-25 corridor and Carbon Valley region, to the farmlands of Brighton, Hudson, and Keenesburg. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, X (formerly Twitter), LinkedIn, YouTube, and Instagram.

About Tri-State Generation and Transmission

Tri-State is a power supply cooperative of 45 members, operating on a not-for-profit basis, including 42 utility electric distribution cooperative and public power district members in four states. Together with our member/owners, we deliver reliable, affordable and responsible power to more than a million electricity consumers across nearly 200,000 square miles of the West. For more information about Tri-State, visit www.tristate.coop.

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United Power is attempting to return unclaimed capital credit retirements to members who received electric service from the cooperative prior to 2020. If you were a member up to Dec. 31, 2019, you may be eligible to claim a previously issued but unclaimed capital credit refund. 

What Are Capital Credits?

Cooperative members periodically receive capital credit allocations based on their electric usage during a specified time period. The amount you receive is based on the amount of power you used and the margins earned for the time period being allocated. In subsequent years, at the Board of Director’s discretion, previously allocated capital credits may be retired and returned to members. 

Who May be Eligible?

Please look for your name on the list of unclaimed capital credit retirements.

• If you were a United Power member for any period of time through Dec. 31, 2019 AND you were issued a capital credit retirement check in 2020 or earlier that you did not cash;
• If you are the family member or estate representative of a deceased member who had an uncashed capital credit retirement check issued in 2020 or earlier;
• If you are a current member who:
  • Changed your name;
  • Added your name to an existing account;
  • Or did not cash a capital credit retirement check issued in 2020 or earlier.

How Can I Find Out If I Am Due a Refund?

A copy of the unclaimed retired capital credit list is posted in the lobby of United Power’s Brighton office. The list can also be viewed here.

The Brighton office is located at 500 Cooperative Way, off the I-76 service road. Lobby hours are:

Monday-Friday, 8:30 a.m. - 5 p.m.

My Name is On The List. How Do I Claim My Refund? 

If you find your name on the list of unclaimed capital credit retirements, download and complete the Unclaimed Retired Capital Credit Refund Request form. A copy of the form may also be requested by emailing United Power or calling the Member Services department at 303-637-1300. Submitting a form does not guarantee a disbursement will be made. Proper documentation and valid proof of membership during the applicable time period is required. No refund checks will be issued for unclaimed retirement amounts below $5. Once claimed, an individual may opt to donate their capital credit refunds to the United Power Round Up Foundation, which provides assistance to community organizations within the cooperative’s service territory. After the notification period closes on April 30, 2024, all unclaimed retired capital credits for the applicable time period will be considered an assignment and contribution of capital to United Power.  

Refund Request forms must be received by United Power by April 30, 2024.

Impact to be Spread Across All Rate Classes

United Power members will see a rate increase effective for usage beginning Jan. 1, 2024. United Power Board members and staff recently reviewed the cooperative’s costs and determined that rates need to be raised an average of 9.5% to help the cooperative maintain a healthy financial profile.

“These decisions are always difficult, and the Board carefully scrutinized spending in all areas across the cooperative before reaching the conclusion that rates need to be increased,” stated Mark A. Gabriel, President and CEO. “Your cooperative has worked hard to keep costs as low as possible for members during the last three years, especially when inflation began to impact the cost of nearly everything we need to maintain normal day-to-day operations. While we knew this effort was only a delay tactic, we really aimed to keep rates stable for members while costs for everything else in their households were rising.”

Average Household to See $10-$15 Increase Monthly

The average residential member will see increases in both the demand charge and in the energy charge, while the fixed charge will remain the same. The demand charge will increase from $1.50 to $2.50 per kW, while the energy charge will increase from 9.95 cents per kwh to 10.39 cents. 

The average household on the standard residential rate using about 850 kwh per month with a demand of 7 kW will see their bill rise from $114.08 to $124.82, an increase of $10.74. 

Residential time-of-use members will see a similar increase, with an increase in demand from $1.50 to $2.50 per kW. On-peak energy charges will rise from 15.4 cents to 16.07, and off-peak energy charges will increase from 5.25 cents per kwh to 5.5 cents. All other rates will see similar increases. See full menu of rate changes here. 

The cooperative’s rate model forecasts that most households will see a $10-$15 per month increase in their electric bill. However, the structure of United Power’s rates provides members the ability to keep costs lower by controlling demand. Reducing demand is as simple as not using electric appliances at the same time. Additionally, setting timers on dryers and dishwashers so they start after the family goes to sleep moves the demand of that appliance to a lower use period and actively reduces demand costs.

Learn more about demand and how you can reduce the impact of this portion of your bill.. 

Why are rates rising now?

It is important to understand that the cost of wholesale power makes up approximately 75% of a member’s bill. United Power’s current wholesale power supplier is planning a large rate increase in 2024, including a significant change in their rate structure. Once approved, the new rate structure will shift expenses from generation to transmission, which will have a considerable impact on United Power even after our exit. In other words, the cost to deliver power to our members will increase next year — regardless of who is generating and supplying that power. Fortunately, the cooperative will begin purchasing and managing its own wholesale power supply on May 1, 2024, giving us greater control over this portion of our power cost.  

United Power staff has kept a watchful eye on spending, particularly over the past three years, but our operation is challenged by rising costs just like most households and businesses. Unavoidable increases in property taxes and insurance premiums are impacting the cooperative. Add to this the rising cost of construction materials and critical components like transformers and wire, and it has been a challenge to balance our budgets. Even the costs for attracting and retaining talented employees continues to climb in both wages and benefits. 

How Can Your Cooperative Support You?

United Power has numerous resources to help our members manage their energy usage. Weatherization information to make your home envelope tighter, energy audits to provide tips on energy efficiency measures, rebates to support purchasing energy efficient appliances, and information on lifestyle changes that can help reduce costs are all ways we put the power to control costs in our members’ hands. 

If you need help managing your electric costs, please feel free to contact us for assistance. Members may reach United Power by phone at 303-637-1300, via email, or by chat at www.unitedpower.com during normal business hours.

United Power announces the publication of its first Social Responsibility report. The report recaps the cooperative’s accomplishments, performance, and progress in four defined areas – social, governance, safety and risk, and environmental. The inaugural report was approved by the United Power Board of Directors during the September board meeting, marking a significant milestone in the member-owned cooperative’s ongoing commitment to transparency, sustainability, and responsible management.

Each area of concentration is important to the overall operational and financial health of the cooperative, and utilities that measure performance in these areas consistently rank among the best in the country. The comprehensive report showcases United Power’s values of responsibility, integrity, and reliability, while outlining specific actions taken to support these tenets.

“We are excited to feature the many initiatives and accomplishments of the cooperative in this report,” stated Mark A. Gabriel, United Power President and CEO. “While annual reports highlight the prior year’s performance and the cooperative’s financial position, the Social Responsibility report provides our members a deeper understanding of the actions we are taking to further our mission to provide the best possible service.”

Key highlights from United Power’s inaugural Social Responsibility report include:

• Social Impact. The report highlights the cooperative’s efforts to create a positive impact within the communities it serves. This includes both cooperative- and employee-supported initiatives; the promotion of tolerance, acceptance, and inclusion in the workforce; and the careful attention to the integrity of data and information.
• Governance Excellence. The co-op’s governance structure and practices are outlined, highlighting the cooperative regulatory model, member engagement in director elections, and the cooperative’s corporate behavior and codes of conduct around financial transparency, accountability, and ethical conduct.
• Safety and Risk Management. The report outlines the many ways the cooperative is building and maintaining a resilient and safe infrastructure to protect the communities it serves. Through a comprehensive wildfire mitigation and vegetation management strategy, a strong safety culture, and broad-based approach to addressing risk, the cooperative is actively working to ensure the safe and reliable delivery of electricity.
• Environmental Responsibility. The cooperative’s innovative energy programs are highlighted, showing the depth of the co-op’s commitment to providing sustainable, flexible, and affordable power for members. Through efficiency measures and programs to make emerging technologies more readily accessible, United Power is paving the way for the evolving energy landscape.

Electric cooperatives have a long history of measuring success in these operational areas and are guided by a set of principles that emphasize social responsibility and transparency. United Power’s Our Cooperative Roadmap is the long-range action plan addressing how the co-op will tackle the challenges of the evolving utility landscape. The Social Responsibility report, which will be updated annually, will allow members to gain a greater understanding of the cooperative’s goals and accomplishments.