Our Cooperative Roadmap leads a list of amazing accomplishments in 2021. United Power took a different, and slightly longer, view of our actions and investments over the next decade. This was essential as we embrace the dramatic changes and tremendous opportunities taking place in the most critical infrastructure of all – electricity.

It is important to put the Roadmap in the context of our innovative history and community involvement. United Power pioneered technologies, installing the first cooperative community solar project, capturing methane gas from the Erie landfill to generate electricity, and installing the largest battery storage project in Colorado. We have expanded our electric vehicle (EV) charging network, examined how blockchain can facilitate member-to-member transactions, and partnered on a geothermal project with oil and gas operators to generate power in the field for use on site. 

Our Roadmap has four priorities: empower and engage our membership and communities; provide flexible, affordable, sustainable power and services; continuously optimize our electric distribution system; and achieve and maintain business agility and resilience through information technology and operational technology (IT/OT) and system operations. 

Engaging our members and communities means making programs available so you have a more active role in managing your electric bills while helping us manage the system more efficiently. What does this look like? Simply put, managing connected energy resources to avoid peaks, lower demand, and provide a benefit for all members. 

We want to help our member communities grow into their vision of an ideal town or city. We want to be the power behind the spaces you call home. But with all our growth, it is important we also continue to perform well as a business.  Optimizing our system promotes more efficiency, shorter outages, and better wildfire protection. 

And what about your power? Should it be less expensive? Should it be generated closer to home? How can we be an active voice in the discussion about where energy is going in the next decade? 

Flexibility in our power supply has many layers. First and foremost, United Power is seeking a new source for wholesale power. We can no longer live in an expensive, constrained generation environment. We must be in position to take full advantage of coming power markets. This is truly about economics – keeping dollars in our communities, lowering rates, and being able to work with members and others who want to generate more cost-effective electricity. If you want to learn more about how we are planning for these future changes, join us for our Power Supply Forum on June 7 (Details here). 

Underlying all these initiatives is the need for technology that will allow us to move to the next level. We need to collect and analyze information about our system and provide automated solutions that give members control over their energy usage. Events of the past couple years have tested and confirmed our ability to deliver these solutions to people working beyond the office. 

There are other utilities fighting the future and trying to keep inefficient generation on the market, failing to embrace technology, markets, and member engagement opportunities. Holding onto the past, be it business models or technologies, has never worked. 

What does the future look like for United Power? Abraham Lincoln is to have said, “the best way to predict the future is to create it.” We are doing just that thanks to the tremendous support of your Board of Directors and the employees who work with phenomenal dedication every day. Bottom line: we must continue providing a robust network so that every member behind every meter has every option to engage in the way they desire. 

We need to do this while ensuring high quality, high reliability, and reasonably priced power. Engagement is key, and I encourage all members to reach out to me as we execute Our Cooperative Roadmap.   

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.

###

Date: 4/29/2022
United Power filed a non-conditional Notice of Intent to Withdraw from our power supplier in compliance with a recent Federal Energy Regulatory Commission ruling. This changes our previously announced Tri-State exit date of Jan. 1, 2024 to May 1, 2024.

United Power hosted a hybrid Annual Meeting on April 13, allowing members to gather in person for the first time since 2019. The cooperative was pleased to return to an in-person format this year. Nearly 450 members and guests attended the meeting either in person or online. The meeting included a video recap highlighting the cooperative’s accomplishments over the last year, an annual financial report, and the certification of the director election.

Voting in the director election was conducted via mail-in and electronic balloting. The cooperative introduced electronic balloting this year to provide members with a fast, secure and convenient way to submit ballots and avoid delays in mail handling. More than 6,000 member ballots were cast in the election. East District incumbent, Elizabeth “Beth” Martin, retained her seat, receiving 2,728 votes. Steven “Steve” Douglas received 2,536 votes and Naptali A. Lucks received 700 votes in the race for the East District. Ursula J. Morgan, West District, and Keith Alquist, South District, ran unopposed and will retain their seats with 5,341 and 5,337 votes, respectively.

Ursula J. Morgan, Board Chairman and Mark A. Gabriel, President and CEO, summarized the cooperative’s performance in 2021 with a video presentation. The cooperative surpassed 100,000 meter connections, improved operational efficiencies, and implemented several innovative projects all in the last year.

The addition of more than 4,600 new meters pushed United Power beyond 100,000 meters early last summer. It became just the 31st electric cooperative nationwide to surpass this mark and only the second in Colorado. While more meters were being added, the operations team conducted targeted maintenance, which reduced outage times to nearly half the national average.

United Power also expanded its electric vehicle charging network, installed a diesel generator in Gilpin County, and deployed its first hybrid bucket truck. The cooperative’s second charging station at the Market Street Mart in Keenesburg filled a gap in available charging infrastructure along Interstate 76. The generator project provided an outage solution and emergency backup to members located at the ends of the co-op’s lines where it can be difficult to restore power quickly due to isolation and mountain terrain. 

Most significantly, United Power announced its intentions to pursue a change in its wholesale power supplier effective January 2024. Wholesale power costs account for approximately 75% of member rates and attempts to negotiate the cooperative’s existing contract have failed. Based on the broader economic landscape, leadership believes it is in the best interest of members to find an alternate supplier moving forward.

“This was not a decision that was reached without exhaustive research and deliberation,” said Morgan. “We considered the impact on rates and reliability, as well as the flexibility of our power supply. The Board believes this is the right direction for our cooperative.”

The cost of power under the current contract is nearly 20-25% higher than market levels. The availability of self-generation and storage options combined with existing contract limitations no longer meet the needs of United Power members.

“Our goal is to provide both lower-cost power and more options for our members,” Gabriel said. “We are confident we can craft a new future for our members, and we are excited to bring the opportunities to you.”

United Power anticipates far-reaching change and innovation to come to the electric utility industry in the years ahead. One of the cooperative’s biggest accomplishments last year was developing Our Cooperative Roadmap, a long-term action plan to maintain United Power’s strength and competitiveness in the evolving industry.

“What does the future look like for United Power?” Gabriel asked. “We need to continue to provide a robust network so that every member behind every meter has every possible option and opportunity to engage in the way they desire. Bottom line: we need to do this while ensuring high quality, high reliability, and reasonably priced power.”

Keith Alquist, United Power’s Board Treasurer, presented the cooperative’s financials and reported the cooperative is in good fiscal shape. The finance team at United Power continues to receive compliments from auditors for their professionalism, completeness and accuracy in preparing financial statements at year-end and on a monthly basis.

Videos and information presented at the 2022 Annual Meeting, including the cooperative’s 2021 Annual Report, are available here.