I have spent much of my 30+ year career in the utility industry. Through the years, people have often asked me what the “best” business model is to provide electricity. There are basically three choices: investor-owned utilities, municipal utilities, and cooperatives like United Power.

I try to reflect on the various pluses and minuses of each business model when answering the question, but always come back to the same conclusion — cooperatives are the closest to their member-owners, focus clearly on the communities being served, and can make changes quickly as technology transforms the energy enterprise.

Commitment to our member-owners is deeply embedded in the cooperative mindset. Our employees work diligently each day to meet the needs of United Power members, while also anticipating future needs. This is why we have been able to handle the tremendous growth in our service territory across all the sectors we are proud to serve: residential, small commercial, and large commercial/industrial. Our attitude and culture is to meet needs when and where they arise, based on the members’ time frame.

Members have an active voice in the utility’s future direction through the annual Director Election. The dedicated women and men on United Power’s Board of Directors spend many hours alongside management preparing for what is to come. This is particularly important with the rapidly changing environment we find ourselves in today.

The Board had the foresight to pilot the largest battery storage facility in the West in 2018. It provided understanding and experience in operating battery storage systems, and paved the way for the cooperative to add another 115 megawatts of battery storage to our system this spring and summer. This battery deployment ensures reliability and allows us to manage the system locally. We will be one of the first utilities in the nation to energize utility-scale batteries at our substations. Moving quickly and taking advantage of innovative technologies is a hallmark of the cooperative world, and certainly at United Power.

Our theme for this year — United Power’s 85th anniversary — is Here for Good. This captures our belief in building a reliable and resilient distribution system and our enduring presence in the communities we serve. United Power fosters local relationships and partners on economic development to support community growth. The cooperative also partners with members who want to give back to those less fortunate through Operation Round Up. More than 25,000 of you participate in the program, which has distributed more than $3 million since 1995. This is why the cooperative business model is so strong — the proximity to the people we serve as “members” and not just “customers.”

As a member, you are also an owner with a vested economic interest in United Power. A part of every monthly statement is an investment in your utility — a key difference in the three business models. Every year, the Board of Directors evaluates our financial condition and determines if we can return margins to members. In the last five years alone, we have returned more than $25 million to members. This only happens in the cooperative world (unless you own stock in an investor-owned utility, of course).

Electric cooperatives are based on seven principles: open and voluntary membership; democratic member control; members economic participation; autonomy and independence; education, training, and information; cooperation among cooperatives; and concern for community. We take these principle to heart in everything we do at United Power.

My third anniversary at the helm of United Power is March 15. I am thankful every day to live and work in a community powered by an electric cooperative, and to work with the amazing women and men of this utility.

As always, please feel free to reach out with your questions, comments, or concerns. I enjoy hearing from our members and appreciate your continued support.

Cooperative Achieves Record SAIDI Score for Second Year in a Row

United Power’s core responsibility to its members as an electric cooperative is ensuring consistently reliable power, which means the lights stay on and the power continues flowing whenever you need it to be available. Several years ago, the co-op’s operations and engineering staff began coordinating the implementation of an innovative system maintenance strategy. It incorporated embedded devices throughout the system and preventative maintenance practices to meet ambitious goals for reliability and resiliency – defined as the ability to rapidly recover from power outages, such as reducing frequency or duration. 

Results exceeded expectations. United Power successfully prevented thousands of potential power interruptions before they occurred, dramatically reducing the number of outages members experience and limiting the duration when outages do occur. The strategy has produced sustained improvements in reliability and resiliency year-over-year since it was implemented in 2017, cementing the cooperative’s status among the best performing electric utilities in the country. 

By the Numbers

Electric utilities measure system performance and develop improvement plans using a variety of indicators, such as the System Average Interruption Duration Index – more commonly known as SAIDI – and the System Average Interruption Frequency Index, or SAIFI. These indicators, among the many that United Power and other electric utilities use to measure how successful systems are performing, essentially analyze data and calculate outage expectations for an average member. 

SAIDI measures the total outage time an average member would expect to experience over the course of a year (cumulative duration of all outages experienced). The national average is approximately 120 minutes. United Power has not produced a SAIDI score above 72 minutes since 2017 and has maintained a score below 60 minutes – less than half the national average – for the past two years. 

SAIFI measures the total number of outages an average member would expect to experience over the course of a year (frequency of outages experienced). United Power’s SAIFI score of 0.65 in 2023 means the average meter experienced fewer than one outage throughout the year. Put another way, many of the cooperative’s members did not experience an outage last year.

Other performance indicators are used, as well. One of those indicators measures the system’s overall availability rate. The co-op’s availability in 2023 was greater than 99%. 

“These metrics demonstrate the success of the strategies we are using to improve reliability and resiliency across our system,” said Mark A. Gabriel, United Power’s President and CEO. “Thank you to our operations and engineering teams, who are responsible for interpreting data from the system and designing the strategies we practice in the field.”

Preventative Maintenance Practices Installed 

United Power incorporated a proactive approach to system maintenance in 2017. The strategy relies on analyzing data collected across thousands of miles of line and isolating the worst-performing segments. Targeted maintenance projects are then scheduled to improve the performance for that segment. 

One example of this strategy is the co-op’s drone maintenance program. The program began in United Power’s mountain territory, where accessing poles and infrastructure can be difficult and time consuming due to the rugged terrain and weather. Drones can quickly conduct detailed investigations and document broken, failing, or aging equipment. Drones have saved the cooperative countless hours and prevented hundreds of potential outages. Since completing initial inspections in Coal Creek Canyon and Golden Gate Canyon, the drone maintenance program has been used throughout the entire service territory.

Advanced Monitoring Technology

Preventative maintenance would not be possible without automated monitoring devices embedded throughout the system that report irregularities and potential concerns. These devices capture important information to help system operators determine the best power restoration process in the event of an outage and can help crews in the field pinpoint the time and location of a fault. 

The ability to quickly locate a fault, identify its cause, and restore power to members, often remotely due to redundancies built into the system for this very purpose, has significantly improved the cooperative’s outage response and reduced the duration of outages. Identifying problematic areas would be difficult without this information and could create additional delays in power restoration because lineworkers would need to physically inspect miles of line to locate and repair the cause. 

Readying for the Power Supply Transition

United Power will be transitioning to new power suppliers on May 1 as the cooperative exits its existing power supply contract. United Power’s robust distribution system is ready to take the cooperative into the future of our new energy supply. This transition will have no impact on the system’s reliability. 

The added flexibility of additional power supply contracts as the cooperative grows may even improve system performance in the long term with the ability to make proactive infrastructure upgrades. 

United Power is already among the best performing electric utilities in the country, and leadership at the co-op is continually seeking to improve its system reliability and resiliency. Whether it is proactive maintenance strategies, automated devices, or other system improvements, the cooperative is always looking for ways to improve and meet member expectations.

United Power is proud to announce the launch of a new scholarship program aimed at supporting graduating high school seniors interested in pursuing a career as a utility lineworker. The United Power Lineman Scholarship will provide two deserving students with a $7,500 scholarship each to support their education in a power line program.

With the increasing demand for skilled lineworkers in the electrical industry, United Power recognizes the importance of investing in the next generation of talent. The scholarship aims to alleviate the financial burden for students entering the lineworker profession and empower them to pursue their career goals.

“We are excited to introduce the United Power Lineman Scholarship as part of our ongoing commitment to support continuing education in the communities we serve,” said Julie Stewart, Community Outreach Coordinator at United Power. “The Lineman Scholarships are the newest addition to our annual cooperative scholarship program and will be awarded along with an additional $31,500 in post-secondary and vocational scholarships in 2024.”

Scholarships are open to graduating high school seniors who are a dependent of a United Power member. Eligibility for scholarships varies, but in general, applicants will be evaluated based on academic achievement, extracurricular involvement, and leadership potential. To be eligible for the Lineman Scholarship, the students must be entering a power line program.

“We encourage all eligible students who are passionate about pursuing a career in the electrical industry to apply for the United Power Lineman Scholarship,” added Stewart. “We are proud to support tomorrow’s lineworkers and the educational goals of all local students.”

Applications for all scholarships from United Power are now open and will close on March 1. Interested students can find more information and access the application here.

We are finally nearing the end of the beginning — United Power’s journey toward operating as an independent cooperative, focusing on the growing needs of our members.

This journey began many years ago when it became apparent our power supplier was not keeping up with the times and our members were paying a disproportionately large part of the power supplier’s overhead. Additionally, we were being throttled by a rule limiting the freedom our members had to increase their share of power supply alternatives. Despite United Power’s numerous attempts to resolve these issues outside of the legal arenas, the courts and Federal Energy Regulatory Commission ultimately proved the place for our relief. The freedom to make decisions based on what is best for United Power members is at the heart of this years-long effort. 

A few short months before United Power officially celebrates its 85th anniversary, the cooperative will embark on the beginning of operations that take advantage of the variety of available power suppliers while also engaging members who want a more active role in their power decisions. The benefit over time will be lower costs and reduced carbon emissions, as dictated by state and federal regulations. 

United Power continues to see significant growth in all sectors — residential, commercial, and industrial. We have many new businesses moving into our great communities, including high-tech battery and solar panel manufacturing, data centers, and a railroad logistics center and intermodal shipping facility. In addition, we are working cooperatively with our oil and gas members to help them electrify their operations. 

Our future includes new wholesale power contracts that will stabilize costs and immediately reduce our carbon footprint, the utilization of localized battery arrays to control peak power periods, an increasing number of distributed energy resource projects with member partners, and the movement to become a distribution system operator — all while remaining responsive and nimble.

As part of this new beginning, we are buying back our substations, land, and other equipment to ensure local control and decision making. The tremendous engineers and planners at United Power will be better able to plan for growth to support our members when they need it rather than having to wait for a third party to make those planning decisions. Our power supply team has secured sufficient capacity to meet immediate needs with longer term contracts reflecting even lower costs.

The investments made by United Power — and strongly encouraged by the Board of Directors — have made us one of the top-performing utilities of any type in the country. This is reflected in engineering measurements as well as member satisfaction. United Power’s outage rate, for example, is in the top quartile in the entire nation. Local control will allow continued focus on making the right infrastructure investments at the right time.

“Here for Good” is our 85th anniversary message, reflecting our commitment to the communities we serve. We will maintain our commitment to supporting members and meeting the growing needs for electrification. Our members are making investments every day at the edge of the grid, and United Power will be there to ensure the system is strong, robust, and reliable.

Every day the women and men of United Power work to follow the plan laid out in Our Cooperative Roadmap. We always remember our efforts are there to support our members. This new beginning shows we are here for good.

As always, please feel free to reach out with your questions, comments, or concerns. I enjoy hearing from our members and commit to responding personally. Thank you for your continued support.