I remember my second day on the job at Central Vermont Public Service when the process of setting electric rates was explained to me by the utility’s head of ratemaking. My head was swimming with numbers when the CEO, Tom Webb, whom I had never met, popped into the room. Shaking his head, he told me the only thing I needed to know about rates is to keep them as low as possible and always at or below the rate of inflation.

United Power’s staff has worked diligently to keep all costs in check, including insurance premiums. Initiatives like our industry-leading wildfire mitigation plan have allowed us to secure insurance coverage and keep premium increases low. The same is true for the efforts around insurance for cybersecurity, medical, and facilities.

Additionally, the entire organization is working to improve processes to better manage resources and ensure high reliability as costs increase. The cooperative is identifying pathways to optimize efficiency, such as expanding its asset management program to allow for more cost-effective planning. 

We have all felt the recent challenges of inflation. Here at your cooperative, we have held rates flat since Jan. 1, 2020, despite galloping increases in all areas. A typical distribution transformer found near your home used to cost $1,747 in 2019 and today runs $3,113 – assuming one is even available due to supply chain shortages. The cost for larger units has increased nearly 150%, from $35,689 to $88,286. Even simple electrical cable, the main commodity in our business, has gone from $2.39 per foot to $3.81 – a 59% increase!

Power supply represents 75% of our costs. No matter how well we manage the other 25%, the cost of power has the largest impact on rates. Our current power supplier has filed at the Federal Energy Regulatory Commission for a considerable rate increase effective Jan. 1, 2024. The change in their rate structure will impact United Power significantly due to the shift from generation costs to transmission. Specifically, if they charge more for transmission – to deliver the power – those costs will have an effect on the rates we have to pay on your behalf.

The good news is that effective May 1, 2024, United Power will move to a competitive market for power with the selection of at least nine providers. Over time, we will have more control over our generation costs as we increase the amount of carbon-free resources and deploy and manage one of the nation’s first distributed battery storage systems. These systems will allow us to buy and store power when energy prices are low and use it when the demand is high. As a wholesale energy market comes to Colorado in 2026, we will further be able to leverage becoming a distribution system operator by buying and selling resources across the western marketplace.

Even with our concerted efforts, we must implement a rate increase across all our member classes, because we recognize the importance of operating a financially strong member-owned cooperative. We are extremely conscious of the impact that even a small rate increase has on our members and commit to continue working to find ways to lower rates into the future.

United Power wants to work with you to help manage your electric bills and has a team of dedicated employees to provide information, audits, and tips to moderate any rate impacts. They can be reached during normal business hours by phone at 303-637-1300 or via online chat at www.unitedpower.com. Likewise, members may email the United Power Member Services team. 

The new rates, which go into effect Jan. 1, are split between the demand charge and energy charge. The energy component will include a power cost adjustment, providing us the flexibility to move that portion up and down if needed.

Inflation has risen a staggering 21% since our last rate increase four years ago. I hear my old CEO’s words echoing in the back of my mind: “…keep rates as low as possible, and always at or below the rate of inflation.” Tom, we are working hard to do just that!

Please feel free to reach out to me with any questions.

NOTICE OF CHANGE IN THE RATES, RULES, AND REGULATIONS TARIFFS OF UNITED POWER, INC.

DATE OF NOTICE: October 27, 2023

You are hereby notified that UNITED POWER, INC. (United Power) proposes to make changes to several of its rate tariff schedules to become effective for energy usage on or after Jan. 1, 2024 (billings issued after Feb. 1, 2024*). An increase is necessary for all rate classes due to increased wholesale power supply costs and increased distribution expenses since the last increase effective Jan. 1, 2020. There will be a 9% increase to Industrial Service Substation or Transmission Service (ITD4) and a 9.1% increase to Industrial Service Substation or Transmission Service (ITD1). There will be a 9.2% increase to Industrial Service Substation or Transmission Service (ITD2) and 9.3% increase to Small Industrial Primary (SIP1). The Residential (R1) rate class, Large Commercial Coincidental Peak Secondary Demand (CPS1), and the Industrial Service Substation or Transmission Service (ITD3) will have a rate increase of 9.5%. There will be a 9.6% increase to Small Commercial (C1), Large Commercial Secondary Demand Service (ISD1), Large Commercial Coincidental Peak Primary Demand (CPP1), and a 9.8% increase to Residential On-Peak Demand Time-of-Use Service rate (RDP1). The Residential Time of Use (RTD1), Residential Smart Choice (RD1), Small Commercial Time of Use (CTD1), and Irrigation (IRR2) rates will have an increase of 9.9%. The non-metered light service (L2) will have an increase of 7.8%. The increase to rates R1, RTD1, RDP1, RD1, C1, CTD1, IRR2, ISD1, SIP1, IPD1, ITD1, ITD2, ITD3, and ITD4 will include a wholesale power cost adjustment (PCA) to the energy usage and an increase in the demand charge. The PCA for each rate will be listed on the PCA rate tariff (7.1), and the change in demand will be listed on each applicable rate tariff. Net Metering Service will reflect an increase in the rated capacity limit from 120% to 200% of annual energy usage, and the Electric Vehicle Charges under the pilot program will be updated to an established program. 
  
In addition to rate tariff changes, there are several modifications to update and reflect current business practices in the Rules and Regulations. These updates are to become effective on or after Jan. 1, 2024. Staff has reviewed the current Rules and Regulations tariffs. Business units across the organization were involved in the review. The following main areas have been identified needing revisions or updating: (1) incorporating Regulatory Policy, (2) incorporating Line Extension Policy, (3) updates to Service Connection and Line Extension Fee Schedule, (4) formatting and grammatical updates for ease of use, consistency, and clarity, and (5) updates for Current Business Practices to reflect technological changes, system changes, and efficiencies.

The present and proposed tariff provisions are available for examination at the Coal Creek Branch Office, located at 5 Gross Dam Road, Golden, Colorado; the headquarters office located at 500 Cooperative Way, Brighton, Colorado, and the Carbon Valley Branch office at 9586 E. I-25 Frontage Road, Longmont, Colorado.

Anyone who desires to comment about the proposed changes shall file either an informal complaint or a formal complaint with United Power at 500 Cooperative Way, Brighton, Colorado 80603 at least 10 days before the proposed effective date. 

An informal complaint shall be in writing and shall contain such facts and other information to adequately state the reason(s) for the complaint. An informal complaint shall be considered by United Power, in regard to the proposed tariff changes, but will not require that a hearing be held.

Anyone who desires a hearing must file a specific and formal complaint to the proposed changes and a request for hearing at least 10 days before the proposed effective date. A formal complaint shall be in writing in the form prescribed by United Power’s Regulations Governing Consumer Complaints and Related Matters. Upon request, a copy of said regulations is available from United Power.

United Power may hold a hearing to determine what changes will be authorized, regardless of complaints. If proper formal complaints and request for hearings are timely filed, the United Power Board of Directors shall schedule a hearing. The changes ultimately authorized may or may not be the same as those proposed and may include changes different than those tariffs proposed or currently in effect. Anyone who desires to receive notice of hearings, if any, shall make a written request therefore to United Power, at the above address at least 10 days before the proposed effective date.

UNITED POWER, INC.

By: Mark A. Gabriel, President and Chief Executive Officer

*BIlls received prior to Feb. 1 may include some January usage. If so, the bill will reflect the new rate for that usage.

United Power members can find more information about the proposed 2024 rate increase here. 

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.

National Drive Electric Week is Sept. 22 - Oct. 1

The Colorado Energy Office announced an ambitious grant program in 2018 to develop several electric vehicle (EV) fast-charging corridors throughout the state, making travel possible even across its large rural and mountainous areas. Many of these corridors have started to come into shape over the past couple years, which is a large part of why the state has consistently been ranked among the best places to own an EV as a daily driver. 

Once completed, several of those corridors will traverse along interstate, state, and U.S. highways that intersect United Power’s suburban territory north and northeast of Denver. The cooperative proactively launched its own fast-charging network in conjunction with ChargePoint in 2019, and received a grant from the Colorado Energy Office to install its second location in Keenesburg in 2021. A third was also added at the Carbon Valley office last year. The network was designed to bridge gaps in available charging options and make rural EV ownership more practical and feasible.

Members who are still unsure about EVs may be interested in learning more about new programs United Power has introduced in the past year, including United EV, a pilot program that provides cost-effective at-home charging solutions, and make-ready wiring rebates, providing up to $1,000 toward the cost of preparing your home for an EV charger.  

United EV enrollment provides a complete service package including installation and setup of a wall-mounted ChargePoint Home Flex level 2 charger and maintenance and repairs for the duration of the enrollment period. All this is available for a $19 monthly service fee. 

For more information about United EV, available wiring rebates, and charging network locations, visit the cooperative’s EV Home or reach out to the Energy Management team at 303-637-1233. 

United Power Announced Three New Power Purchase Agreements in July

United Power recently announced three new power purchase agreements in advance of its upcoming exit from its current wholesale power contract with Tri-State Generation and Transmission in May 2024. The cooperative has reviewed dozens of power supply proposals over the past several months to determine the most fiscally and socially responsible partners moving forward. Finding and securing established partners in the energy industry will not only ensure sufficient power supply is available for United Power’s growing load, but having multiple agreements also presents added flexibility for the cooperative’s power mix.

United Power tried to no avail to negotiate more contract flexibility and lower costs on behalf of its members. These costs are above market value, accounting for more than 70% of the cooperative’s operating expenses. Further, the existing contract locks United Power into a restrictive generation mix and prevents it from obtaining more than 5% of its total load from locally generated sources, such as utility-scale solar farms, gas-capture facilities, or even residential rooftop solar. The cooperative’s  power purchase agreements announced in July demonstrate the freedom available by exiting its current wholesale power contract next year. 

Two of the three agreements will facilitate a large portion of United Power’s expected load when the cooperative exits its current contract. The cooperative’s load is presently the largest among Colorado distribution co-ops — at more than 630 megawatts (MW) — despite serving the smallest geographic footprint. The third agreement is an innovative battery storage solution that will help mitigate costs when power demand is high — also known as peak demand. 

“The energy industry is entering a period of revolutionary change,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “We have always put our members first and will continue to do so while advancing our position as an industry-leading distribution cooperative. Leaving our restrictive wholesale power contract affords us the flexibility and freedom to keeps rates competitive, join national power markets, and attract innovative energy partners.” 

As the exit date approaches, questions about the cooperative’s future have started to circulate. It is important that members know the upcoming power supply transition will not impact your membership with the cooperative. United Power will continue as your power provider. New power suppliers will allow the co-op to better serve its members, who can expect the same commitment to delivering reliable and economical electricity to local homes and businesses. Office locations in Brighton, Coal Creek, and Carbon Valley will also still provide the service and support members have come to expect.  

Guzman to Provide Key Power Block

United Power’s power purchase agreement with the Denver-based power supplier Guzman Energy locks in one-third of the cooperative’s power needs beginning in May 2024. The 15-year agreement features fixed wholesale power pricing that provides prearranged power supply costs and rate stability for members. 

Guzman partners with cooperatives, municipalities, companies, and tribes across North America to customize energy portfolios that make economic and environmental sense.

New Utility-Scale Solar Addition

United Power signed a 25-year power purchase agreement to receive power from Whetstone’s Solar of Alamosa project in Southern Colorado. It will add 30 MW of renewable energy to the co-op’s diverse portfolio of generation resources beginning in 2024. 

The solar farm sits atop one of the state’s highest elevation plateaus and receives some of the highest irradiance in the country. Built in 2012, project upgrades are scheduled throughout 2024 to achieve optimum power output. 

Ameresco’s Largest Battery Project

United Power and Ameresco will partner to connect nearly 80 MW/315 MWh of battery storage capacity throughout the cooperative’s service territory. The groundbreaking project will allow United Power to balance its load while integrating renewable resources. Batteries will be located on eight different cooperative-owned substation sites in Adams, Broomfield, and Weld counties, storing and dispatching power during heavy consumption periods.