The energy transition is upon us and I am proud of the team at United Power for not only being ready but also leading the charge (pun fully intended).

Congress recently passed the Inflation Reduction Act (IRA), which will fundamentally and forever change the energy landscape. It will bring beneficial electrification to all Americans in a way not seen since the cooperative model was born to bring electricity to rural parts of our nation in the 1930s. It is in that spirit that funding for critical infrastructure, expanded support for electric vehicles (EVs), and support for new and advanced generation technologies will be made available to our communities. 

United Power has a proud history of being at the forefront of innovation in the energy industry, thanks to tremendous support from your Board of Directors and visionary leaders in the organization. More than a decade ago, United Power unveiled the first community solar farm and five years ago the cooperative energized the largest (still) long-duration battery storage project in Colorado. It has deployed an Advanced Metering Infrastructure (AMI), created and expanded a strategic EV charging network, and recently launched a simple home charging and load control pilot program for just $19 per month. Information about the charging pilot program can be found on our website at www.unitedpower.com/unitedev. Coupled with the numerous energy efficiency and member-friendly programs, your cooperative is well-positioned for the next wave of development.

Thanks to Our Cooperative Roadmap, United Power is prepared to manage into this new energy frontier. While some cooperatives are scrambling to find projects to tie to the IRA, we are already able to bring immediate benefits to our communities. Whether it is the expansion of our EV charging network, working with school districts to obtain funds for electric buses, or using coated conductors in our mountain district to reduce the potential for wildfires, United Power has plans to help these programs lauch quickly.

Our movement toward becoming a Distribution System Operator (DSO) is key to our continued success. As a DSO, United Power can take advantage of systems we have in place - such as AMI or our Outage Management System (OMS) - to share and control information, reduce the amount of power we need to buy, and better manage our system. As a market comes to the west in the next 24-36 months, we will be able to buy and sell power at lower costs and be part of an expanded footprint that can take advantage of weather and time differences.

United Power is focusing on the future of the cooperative, beginning with the finalization of a new power supplier effective May 2024. I am pleased to report that at least 34 companies are vying for our business, with many imaginative projects that will provide better economics, as well as improved carbon management. Our first priority is reliability, followed by affordability, and coupled with a lower carbon future. This aligns with the needs of our membership.

These are exciting times in the energy space, and your cooperative is ready to step into the forefront in support of our communities. If you would like me, or any member of our senior team, to speak about the cooperative’s future at any local events or meetings, please let us know. We are proud of our efforts and happy to spread the word.

We have a great tradition of being prepared for the future at United Power and I want every member to feel empowered to reach out to me and our staff at any time. I welcome the opportunity to meet you where you are, so do not hesitate to contact me or a member of our senior staff. You can submit a comment for me here. 

Electric cooperatives rely on crucial materials to maintain the safety, reliability, and resiliency of their electric system. Supply chain delays are creating new challenges for most industries, but it’s been particularly difficult for electric utilities facing weeks-long delays on parts and materials necessary to ensure a properly functioning system. 

“We’re experiencing six- to eight-week delays on standard maintenance materials, like mounts and brackets,” said Curtis Subia, United Power’s Vice President of Asset Management and Supply Chain. “It may be tempting to waive off something as small as a bracket if other materials are available, but without these brackets, projects come to a standstill. Even small pieces are absolutely essential to safely building our infrastructure.”

With uncertainty surrounding how long supply chain issues may persist, United Power purchased a new piece of equipment that will help the cooperative bypass delays and fabricate whole parts in-house without having to wait for backorders to be filled. A mechanized plasma cutter (pictured right) can precisely cut pieces out of sheet metal in just minutes. The pieces it produces are often ready for immediate use in the field. 

“We could either wait weeks for orders to be delivered or we could figure out a timely way to make them ourselves,” said Subia. “We can’t shut down projects because the supply chain can’t keep up with demand, so we had to come up with a solution.” 

United Power mechanics suggested the plasma cutter as an alternative. They have been fabricating parts for years when something is unavailable or if they need a custom piece. However, manual fabrication is slow, lacks precision, and is dangerous. The plasma cutter can be preprogrammed with almost any design and ready to use in just a few minutes. Once a design has been stored, the software can recall it again at any time. It’s a safer option for the mechanics and frees up their time to be spent on other projects. 

“It can do things the human hand can’t do,” said Kevin Isham, a mechanic at United Power. “It can cut a piece over and over with precision and perfection in half the time it would take one of us to create a single piece. Having it makes our jobs quicker and safer.”

There’s no sign supply chain issues are coming to an end anytime soon. The plasma cutter represents another innovative solution United Power has adopted to meet the needs of the cooperative and its members in challenging circumstances. 
 

United Power was able to send students to Washington, D.C. this year as part of the Electric Cooperative Youth Tour for the first time since 2019. Shared concerns among state electric cooperatives regarding health and safety surrounding the pandemic resulted in the cancellation of both the 2020 and 2021 tours.  

The return of this year’s tour means cooperatives from across the country will sponsor approximately 1,300 high school students for a week in the nation’s capital. While they are in Washington, students will have an opportunity to meet and interact with elected officials representing the state of Colorado, tour historical landmarks and monuments, and learn the value of the cooperatives they represent.  

Each year, United Power selects ambitious high school students to represent it at the Youth Tour. This year, United Power sponsored two local students – Elizabeth Clement, Stargate Charter School, and Noah Kildow, Brighton High School. 

Before departing for Washington, Colorado students toured the state capitol in Denver and met with Gov. Jared Polis, participated in a high-voltage safety demonstration at United Power’s headquarters in Brighton, and heard brief presentations from employees about the various career paths available through the cooperative. 

The Electric Cooperative Youth Tour has been a tradition among cooperatives since the late 1950s. Its origins date back to the National Rural Electric Cooperative Association’s 1957 annual meeting in Chicago, where keynote speaker and future president Lyndon B. Johnson suggested sending youth to the capital to see “what the flag stands for and represents.” A small group of 34 students from Iowa formed the first tour in 1958. To date, nearly 50,000 students have participated in the program. 

Applications to represent United Power during next year’s Youth Tour will be available in early December. Follow us on social media for updates on all of our youth programs.

United Power Exits its Current Wholesale Contract Effective May 1, 2024

United Power caught the attention of electric distribution cooperatives nationwide in April when it filed its non-conditional Notice of Intent to Withdraw from its wholesale power contract with Tri-State Generation and Transmission (Tri-State). The cooperative entered a long-term contract with the generation cooperative when few viable sources of affordable and reliable power were available. At the time, it provided stability for United Power and assurance that members would continue to receive reliable power. But the industry has entered a transition, and the contract is no longer reflective of the cooperative or its members’ best interests. 

The current contract is too restrictive, capping locally sourced power at just 5% of its total load and preventing United Power from bringing more local generation onto its system, which would lower costs and expand member options. Before making the difficult decision to exit its contract, leadership at the cooperative attempted to negotiate a revised “partial requirements” contract. The revised contract would have continued United Power’s membership relationship with Tri-State while also allowing the cooperative to explore and purchase lower cost, cleaner power options on the market. Unfortunately, negotiations to this end failed. 

“Our first option was to continue a mutually beneficial relationship with our wholesale power supplier, where we would continue sourcing a portion of our power from them,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “It is unfortunate they were unwilling to help us reach this goal. Although we feel the current contract does not represent shifts taking place in the industry, it was not a decision we made lightly. We spent countless hours weighing our options and discussing a course of action that would result in the best outcome for our members and our future.”

United Power also issued a request for proposal (RFP) for new wholesale power suppliers along with its Notice of Intent to Withdraw. Perspective power suppliers will have until early August to submit proposals outlining their ability to meet the cooperative’s energy needs. Proposals from suppliers are expected to meet three criteria: 

• Energy, the critical resource keeping lights on for United Power members.
• Capacity, the ability to provide continuously reliable power even in adverse conditions.
• Resource adequacy, the assurance generation will be adequate to meet demand even on hot summer days during peak hours. 

“We are expecting a healthy response to our RFP,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “We’ll spend about two months evaluating proposals before selecting a handful of potential suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.”

The final step in United Power’s exit is determining an exit fee, which is currently pending with the Federal Energy Regulatory Commission (FERC). Although the fee hasn’t been determined, FERC has issued a number of decisions in the cooperative’s favor over the past few months. In March, FERC economist Greg Golino determined Tri-State’s methodology for calculating the exit fee was “flawed and unreasonable.” The exit fee could be decided as early as this summer. 

“Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available,” said Beth Martin, United Power’s Board Chairman. “We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save.”

In June, United Power hosted a member forum to discuss its upcoming exit. Gabriel and Hubbuck provided detailed background of how United Power got to this point and where the cooperative is heading from here. The forum concluded with a question and answer session from attendees both online and in person. 

Additional information, including a recording of the forum is available on our Power Supply page.