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. 

It is hard to believe we are already entering the fall season. Summer flew by while your cooperative employees were hard at work on a number of fronts — improving service, working toward an energy future outlined in Our Cooperative Roadmap, and managing the tremendous growth in our communities.

We spent much of the summer finalizing our power supply portfolio — one that will provide members with a mix of traditional and low-carbon power and storage solutions. The break from our current power supplier will allow significant freedom and flexibility, representing the rapidly changing energy industry, in a reasonable time frame, as opposed to waiting until the end of the decade.  

We are blessed to have a strong mix of residential, commercial, and industrial members in our small 900-square mile service territory, as well as consistent and significant growth. Our system’s diversity means we are a highly desirable partner for companies wishing to locate here and work with United Power to deploy new and innovative technologies.

The future is not just about adding more generation — although necessary to meet growing demand — but also operating our system differently (and more efficiently) than the past. For example, five years after launching what was Colorado’s largest battery storage facility at the time, we have entered an agreement to deploy nearly 80 additional megawatts of battery storage across our footprint, one of the nation’s first dispersed storage projects. This will allow us to charge the batteries when energy costs are low and reduce the demand on our system during peak hours. 

The rise in electric vehicle sales has led to a curious conversation that today’s grid cannot handle the load without massive investments in infrastructure or significant control options. We have among the highest penetrations of EVs and plug-in hybrids in the nation. Here at United Power, we constantly monitor our transformers and energy consumption, proactively managing and improving our system in advance of challenges. Each year, we strategically plan our maintenance to target the worst performing feeders — those lines supporting our members in their neighborhoods — and carefully focus our investments. Your Board of Directors not only supports these activities but works closely with management to ensure we are making the right investments to keep this most critical infrastructure strong. 

This is not to say there will never be outages. Sadly, critters, crashes, storms, and lightning wreak havoc on electric grids, no matter how well built. United Power crews work diligently through some of the most terrible conditions to restore power quickly — and safely. The addition of our Carbon Valley Service Center in 2019 has also allowed us to cut down outage response times in our western territory.

We continue to lead the nation in residential solar installations and support members who want to add solar, as well as storage. Last year, the Colorado Solar and Storage Association recognized United Power as a Solar & Storage Champion for its member interconnection process and rooftop solar saturation. 

We do caution members to be selective in choosing their solar contractor. Several door-to-door salespeople have been reported using unscrupulous tactics, including lies and fabrications, to sell their services. Be leery of any representative mentioning United Power. Our team is available to provide unbiased information and all the tools you need to make the right decision when it comes to solar. Simply call us at 303-637-1300 or visit Going Solar.

As a United Power member-owner, you have a special relationship with the cooperative. Please feel free to reach out to me personally with any questions or comments. I appreciate the honor to serve you.

Enjoy our beautiful fall weather.