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United Power Hosts Member Forum to Discuss Power Supply
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Monday | June 13, 2022
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United Power held a member forum on June 7 to discuss the upcoming exit from its current wholesale power contract.

United Power held a member forum on June 7 to discuss the upcoming exit from its current wholesale power contract and highlight opportunities to purchase low cost, high reliability power that is produced in an environmentally responsible manner. In April, the cooperative filed a nonconditional Notice of Intent to Withdraw from Tri-State Generation and Transmission, reaffirming its decision to leave its wholesale power supplier. The withdrawal is effective May 1, 2024. 

Mark A. Gabriel, United Power’s President and Chief Executive Officer, and Dean Hubbuck, the cooperative’s Chief Energy Resources Officer, discussed the exit process, goals of the transition, and impact to members with both in person and virtual attendees. Gabriel reassured members the shift in power suppliers would not affect their status as members of the cooperative and the exit was ultimately about controlling costs and potentially lowering rates. 

“We’re working diligently so that we can save money,” Gabriel said. “If we can control costs and if we can manage to get better pricing out in the market, we are able then to lower rates. I think that’s something that’s critical as a member-owned cooperative.”

Hubbuck provided a high-level overview of various steps the cooperative has taken to negotiate a fair and equitable contract termination fee through the Federal Energy Regulatory Commission, including several recent decisions in favor of United Power, and its recent request for proposal (RFP) for new power supply. 

“We are expecting a healthy response to our RFP, which is due in the early part of August,” Hubbuck said. “We’ll spend about two months evaluating proposals before selecting a handful of suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.” 

United Power has attempted to negotiate contract modifications with its wholesale power supplier, including an option for partial requirements, but has been met with resistance. The current contract no longer makes economic sense for the cooperative or its members. It limits local generation and member flexibility while rates are well above market price. 

“Historically, our wholesale power contract was entered into because, at that time, our most pressing issue was to secure a reliable source of power when very few viable options were available,” said Beth Martin, United Power’s Board Chairman. “Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available. We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save."

More information about United Power’s contract negotiations and transition to new power suppliers is available on the Power Supply page. Members who were unable to attend the Power Supply Forum can watch it here

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United Power Reaffirms Intent to Leave Tri-State; Issues RFP for Up to 600 MW Wholesale Electric Power Supply
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Monday | May 2, 2022
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United Power filed its non-conditional Notice of Intent to Withdraw from Tri-State Generation and Transmission Association, Inc. (Tri-State) on April 29. The latest filing moves the cooperative’s previously announced departure date to May 1, 2024.

Brighton, Colo. — United Power, a member-owned, not-for-profit electric cooperative based in Brighton, Colorado, filed its non-conditional Notice of Intent to Withdraw from Tri-State Generation and Transmission Association, Inc. (Tri-State) with the Federal Energy Regulatory Commission (FERC) in Washington, D.C., on April 29.

The electric cooperative previously filed a similar notice of intent late last year. That notice, which included a proposed Jan. 1, 2024 departure date, was conditioned upon the assessment of a just and reasonable exit fee by FERC. With this latest action, United Power’s Board of Directors reaffirmed its decision to depart from its wholesale power supplier with a non-conditional notice.

“After careful consideration, our Board stands committed to securing more affordable, more flexible, and lower carbon power,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “We expect this will bring economic benefits and lower rates to our communities, along with greater flexibility to generate power closer to home,” he added.

The latest filing moves the cooperative’s previously announced departure date to May 1, 2024. The modification to the exit timing comes after a recent FERC ruling that required departing utilities to provide non-conditional notices. Central to FERC’s decision is that United Power and its power supplier both require certainty regarding actual departure dates and contracting obligations for power supply. The non-conditional notice of United Power’s departure will allow Tri-State to plan for its reduced supply obligation and assess the economic viability of its higher cost coal generation units.

A FERC hearing to determine a just and reasonable exit fee begins May 3 in Washington, D.C. A ruling from the presiding FERC Judge on exit fees for Tri-State’s members is expected by the end of the summer, with a final Commission decision expected in 2023. Contract disputes between United Power and its power supplier have been ongoing as the cooperative seeks a just and equitable exit fee.

United Power is one of several electric cooperatives in the Tri-State system seeking more flexibility, lower cost power, and fewer contract constraints. Two others, Kit Carson Electric Cooperative and Delta-Montrose Electric Association, have already exited, while three other cooperatives have filed to reduce their participation by 50%. Current power rates through Tri-State are 20% above market, and contract requirements permit only 5% locally sourced power. Economic benefit for its members and the ability to generate local power continue to be the primary reasons United Power seeks to leave the Tri-State membership. United Power believes its withdrawal is in the best interest of its members.

Simultaneously, United Power today issued a Request for Proposals (RFP) for wholesale electric power supply to serve a peak load of up to 600 MW and retail sales of approximately 3,000 GWh. Commitments of intent to participate in the RFP are due by May 16, with questions and clarifications due by June 13. Proposals for part one of the process are due by Aug. 8.

The complete RFP and information for interested respondents can be found at www.unitedpower.com/RFP. Questions about the RFP or selection process may be submitted to United_Power_RFP@enervision-inc.com.

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 cooperatives 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, Twitter, LinkedIn, YouTube and Instagram.

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