Brighton, CO – On Dec. 19, 2023, the Federal Energy Regulatory Commission (FERC) issued a Final Decision that affirms in part, reverses in part, modifies in part, and clarifies in part an Initial Decision issued by a FERC administrative law judge in September 2022 addressing contract termination methodology and procedures for members exiting from Tri-State Generation and Transmission Association, Inc. (Tri-State). This is an important next step in United Power’s path to exit Tri-State by May 1, 2024. 

“While we are still reviewing FERC’s order, we are pleased to see that it supports a variation of the balance sheet approach methodology we proposed versus a contract damages or lost revenues approach,” said Mark A. Gabriel, President and CEO of United Power.

In a Dec. 8 settlement with Tri-State, both utilities agreed to cooperate in good faith to provide the information necessary to calculate the amount of the contract termination payment. “To that end, we intend to work together to determine the appropriate adjustments and offsets so that Tri-State can timely file its compliance filing, and we can file an executed withdrawal agreement. United Power is focused on efforts to ensure a positive future for our members,” Gabriel added.

United Power has taken steps to resolve disputes with Tri-State and to reach areas of alignment and agreement to timely facilitate its departure. Most recently, United Power dismissed state court litigation against Tri-State, and filed motions to withdraw its appeal and intervention in two separate matters before the DC Circuit Court. In September, United Power made an immediate payment to Tri-State for Reserved Issue 3 in the Stated Rate proceeding consistent with the guidance in FERC’s final order. 

Recently Announced Rate Change Takes Effect Jan. 1, 2024

Last month, United Power announced a rate increase taking effect Jan. 1, 2024, and while it is never easy to hear about prices going up, electricity remains one of the best values in most households. Today’s modern household is powering more appliances with electricity. It provides warmth, safety, sanitation, and entertainment. Consider what was in your home just ten or twenty years ago. How many televisions do you have today, compared with how many were in your home growing up? How many connected devices like laptops, tablets, or phones are charging in your home every day? Even something like air conditioning, which was not a standard feature in Colorado homes twenty years ago, is making the modern household more comfortable. 

When people talk about the rising cost of electricity, they often fail to notice how much more they are using. Rates at United Power have not changed since Jan. 1, 2020. During the pandemic and through the many months while inflation was running rampant in everything our members need to live — from groceries to gas — United Power rates did not change. Advanced planning was one of the key reasons we were able to hold rates steady during that period — from existing orders of heavy equipment and vehicles to belt-tightening in every function at the cooperative. United Power was able to provide stable rates while our members navigated rising prices on everything they need for their households.

The Colorado Sun recently reported on the cost of the five most common grocery items Colorado households purchase — milk, one pound of hamburger, a loaf of bread, a dozen eggs, and a pound of coffee. They reported that over the last five years the cost of these items has risen 35%. The price of many goods has been impacted by increases in transportation costs, labor, and raw ingredients. Any homeowner who was lucky enough to lock in a low interest home loan is still seeing their monthly payment rise due to increases in property taxes and homeowners’ insurance. All of those factors also impact your utility.

Keeping the system operating efficiently and making sure we can replace and upgrade equipment where necessary are adding to our operational costs. Consider when we need to purchase land for a substation to serve a new neighborhood; United Power is paying higher and higher prices to acquire land for this development, and all those costs are paid through the rates members pay for electricity.

One of the most powerful things about being served by a cooperative is that United Power is a not-for-profit entity. The cooperative does not work for shareholders who want to see profits. Anything collected above what we need to operate is considered patronage capital — and is eventually returned to members as capital credits. United Power serves its members with the goal of providing reliable electricity without an eye on profits. 

Learn more about upcoming rate changes.