One of the newest buzz phrases in the energy industry is the “shared energy economy.” In this economy, all the resources necessary for keeping the lights on, keeping our homes and businesses running, and keeping society humming are jointly managed for the benefit of all. 

The cooperative business model was founded on this very principle more than 80 years ago, with communities coming together and bringing light where there was darkness. 

The Electric Power Research Institute (EPRI), an independent nonprofit energy research, development, and deployment organization, has a fancy definition of this shared energy economy:

“Technical, business, regulatory, and policy conditions that allow customer-owned resources to supplement utility operations in providing value to consumers while also providing value to the asset owner.”

Today we have advanced technologies that are creating an energy web, linking centralized resources and member-owned resources, such as electric vehicles (EVs), solar panels, and home battery storage in new and exciting ways. The coming of a power market in the next two years will allow United Power — on your behalf — to manage a variety of electric inputs that will help lower bills and make better use of the electricity we buy.

Taking advantage of the shared energy economy is one of the many reasons we are working to find new, more forward-leaning power suppliers, as our current arrangement limits the flexibility we can provide our members and the choices that are available. We have outlined this future in Our Cooperative Roadmap that envisions a day in the not-to-distant future when we are no longer penalized for being efficient, having large scale batteries, or working with our members to serve their needs in a mutually beneficial manner.

There are more than 9,200 members with solar rooftops, 150 with batteries, and many thousands buying EVs in our service territory. Combining those with load management programs for water heating, air conditioning, and on-site generation will allow United Power to bring value and share the economic benefit of those investments.

These changes will help many of our industrial and commercial members meet their Environmental, Social, and Governance (ESG) goals, while also achieving Colorado’s planned reduction in emissions. It is important to recognize how the economics are driving these changes for United Power first and foremost. We can get the dual benefit of meeting goals and lowering costs.

The shared energy economy has been a cornerstone of the cooperative business model, and this continued evolution fits well into United Power’s history as an energy leader on your behalf and recognizes the future opportunities for our communities. 

As always, I welcome your comments and insights, as well opportunities to meet with our members anytime. Please feel free to reach out to me or any member of our executive team with questions or concerns. 

When Compared to Other Expenses, Electricity has a Surprisingly High Value

Electricity is a commodity we always expect to be available when we need it. We use it to power almost everything in our lives to some extent – from the alarm clock that wakes us up for work or school, to the television that helps us wind down at night, or the cell phone that keeps us connected with our loved ones. It is so readily available and easy to access we do not often realize it has a surprisingly high value when compared to many of our other daily or monthly expenses. 

As a commodity people use frequently and pay for monthly, we are acutely aware of differences in our monthly billing statements. We may be even more mindful of our electric cost when rate increases make headlines. Given the regular information you receive about utility rates, you might be surprised to learn that electricity rates have one of the lowest cost increases over time when compared to other budget items like rent and education. In fact, when adjusted for inflation, electricity rates have been steadily decreasing since 1980 despite how increasingly reliant we are on the resource in our daily lives (source: U.S. Bureau of Statistics).

The average United Power family uses approximately 22-32 kWh per day, which is roughly equivalent to $3. Now think about your daily routine. Do you grab a coffee on your way to work or order food at a local restaurant during lunch? The average cup of coffee now costs just under $5, and for special blends or add-ons it could cost more. Fast casual meals at restaurants like Chipotle or Panera can cost more than $10. That means for the cost of a single cup of coffee, you could leave an LED TV on for more than 35 days or charge your phone more than 300 times on our standard residential rate. For just $5, you can do about 20 loads of laundry. If you were to shift your usage off-peak on our time-of-use rate, you could save even more.

To put it another way, most United Power members spend more on their cell phone plan ($4-5/day) than they do on electricity (as little at $2/day). The time you spend on your mobile device, which is probably a lot, is incomparable to how frequently you require reliable electric service. Many routines and daily tasks are becoming electrified with the introduction of new electronic devices, which means we are also using far more energy now than ever before.

The best way to capture the value of electricity is to make your home more energy efficient. You could make the transition to ENERGY STAR® appliances that require less energy, install a smart thermostat to monitor and adjust heating/cooling when you are away from home, or look into our rates that reward you for switching use to off-peak hours.

Our Cooperative Roadmap (Roadmap) is United Power’s functional plan for the future, and focuses on four specific pillars the cooperative views as essential to strengthening its position as a leader in the electric industry. In previous newsletters, we have highlighted our commitment to pursing affordable and sustainable power, optimizing our distribution system, and our commitment to member and community engagement. The final Roadmap pillar focuses on our information technology (IT) and operational technology (OT) systems strategies, which allow us to be efficient and functional in maintaining our distribution system.

Advancing technologies play a critical role in how United Power responds to and prevents outages. Without the insight computerized systems provide, the cooperative would not be able to see in-depth information about grid performance and conduct targeted maintenance. In a way, this pillar is foundational for meeting the requirements of grid optimization.

“United Power has taken an approach of embracing IT,” said Rex Webster, an infrastructure engineer at the cooperative. “It’s where they integrate us into decision making that allows us to shape and guide workflows, processes, and systems.”

United Power’s Advanced Metering Infrastructure (AMI) is a computerized system that provides the cooperative with information about energy usage. It helps guide grid construction and improvements and ensure sufficient power is delivered where members need it. In many cases, we can use this system to identify and respond to outages before members may even be aware. It is the availability of this infrastructure that also allows us to offer Power Portal to our members, where you can view energy usage in 15-minute segments and make energy-saving habit changes. 

The implementation of informational technology strategies would not be complete without factoring in the ever-increasing threat to cybersecurity. 

“We’ve implemented many state-of-the-art cybersecurity tools and monitoring services on both our field devices and our corporate networks,” Webster said. 

Technology is advancing rapidly, and new technology may be on the horizon that offers even greater insight into our distribution system. While we have no way of knowing what may be available tomorrow, our systems are built to adapt as changes take place. We are constantly looking for advantageous options that enable us to better serve our members. 

“Our Cooperative Roadmap is looking ahead over the next 10 years as we become a more fully functional distribution system operator,” said Reliability Engineer Tyler Bain. “But in reality, we’re already down that path, and we’re already deploying and utilizing the systems that are going to make some of those futuristic thoughts possible today.”