Dynamic Calculators Included in Recent FERC Exceptions Filing

Brighton, CO - United Power has filed two exit fee calculators in conjunction with its response to the Federal Energy Regulatory Commission (FERC) initial decision by Administrative Law Judge Renee Terry. These calculators may be used to assist FERC and others as they evaluate the impact of (1) United Power’s proposed balance sheet approach (BSA) incorporating the most recent available data and (2) certain modifications to the BSA proposed by FERC trial staff and adopted by the initial decision. 

The tools allow all 42 utility members to assess their exit fees from Tri-State Generation and Transmission Association (Tri-State) under (1) United Power’s as-filed BSA (“Appendix A”) and (2) the BSA implementing certain adjustments adopted in the initial decision (“Appendix B”). Working copies of the calculator tools, definitions, and descriptions can be found at www.unitedpower.com/powersupply.

The Appendix B fees are modeled based on FERC staff’s exemplary calculations previewed during the hearing process that were adopted in the initial decision, as well as publicly available data, such as Tri-State’s annual financial reports. Each of the 42 utility members can enter a desired departure date and select variables implementing the exit options available under the initial decision. The Appendix B model also calculates alternatives proposed by United Power in its concurrently filed exceptions brief (e.g., a principled 10-year revenue averaging option and transmission revenue adjustment that United Power describes in the brief). These alternatives improve upon the calculations reflecting the initial decision’s overarching principle that the exit fees should be based on the net costs Tri-State incurred to serve the exiting member.     

“We appreciate the hard work by FERC staff in proposing solutions for departure from our power supplier that are in most respects aligned with what United Power has consistently advocated as a fair outcome,” said Mark A. Gabriel, President and CEO of United Power. “By following United Power’s balance sheet approach, everyone can calculate their actual cost to depart. This is critical for future planning for our current power supplier and its utility members. Though the initial decision modifications present implementation questions and other obstacles that we challenge in our exceptions brief, we believe the decision’s principles chart a course toward members’ fair transition to competitive supply and open access.”

United Power has formally indicated its departure from Tri-State, effective May 1, 2024. Learn more about United Power’s departure plan at www.unitedpower.com/powersupply.

About United Power

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 co-ops 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 them on Facebook, Twitter, LinkedIn, YouTube, and Instagram.

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It has been an eventful and exciting late summer and early fall. United Power was able to mitigate the financial impact of record peaks with the help of demand response and load control tools, such as our Smart Rewards thermostat program and our managed electric vehicle charging program, United EV.

At a time of the year when weather can create challenging situations for electric grids, our system held up well. The investments we made in our distribution network on our members’ behalf, combined with our active wildfire mitigation programs, resulted in few operating issues. We run one of the best networks in Colorado – and probably the country – thanks to the great staff and alignment with Our Cooperative Roadmap (Roadmap), which emphasizes a continual optimization of our distribution system.

Another key pillar in our Roadmap is providing flexible, affordable, and sustainable power. United Power is one step closer to obtaining lower cost, cleaner power for our members thanks to a recent ruling from an administrative law judge at the Federal Energy Regulatory Commission (FERC) regarding the cooperative’s exit fee from our current wholesale power supply contract. While this is just part of the process, it is a major step in the right direction.

Our decision to depart from our current supplier is based in economics. United Power members pay over market price for their power and transmission while living with a choke collar that caps our ability to generate local power at 5%. We are penalized for being more efficient and deploying innovative energy solutions, like battery storage. We are even prevented from adding resources within our footprint, meaning our communities do not receive the financial benefit of companies wanting to invest in renewables close to home.

It is important to remember the decision to seek FERC oversight was our power supplier’s alone. United Power did not support the decision for a number of critical reasons, chief among them the loss of local control to set rates, combine cooperative needs, and jointly manage costs. 

In contrast, one of the greatest strengths we have as a cooperative is local control through your elected Board of Directors. This ties to another critical pillar in our Roadmap – empowering and engaging our members and communities. Your Board members come from your towns and understand the values and concerns of each community’s residents. They provide direct oversight of the cooperative and hold the power to establish rates, but they ultimately answer to members as representatives of their communities.

I have recently been honored to present on the topic of changes within the electric industry at local chambers of commerce and regional energy conferences. I would be pleased to address any similar organizations about the future of the industry and anticipated changes to it. If you are involved in a local organization wishing to hear about our initiatives, just send an email and someone will reach out to set up a presentation.

Finally, October was Cybersecurity Awareness Month. United Power remains vigilant to threats our system faces as we strive to achieve and maintain business agility and resiliency through information and operational technology, which is our fourth and final Roadmap pillar.  We cannot let our guard down, given there are those who wish to do harm to the electric grid. 

As always, please feel free to reach out to me with your questions and concerns. It is an honor and privilege to serve you and the great staff at United Power.

Analyzing System Data to Improve Performance & Reliability, Mitigate Risk

As an electric distribution cooperative, delivering high reliability power safely and efficiently to members is United Power’s first priority. You expect your power to be available when you need it and as long as you need it. United Power recognizes its members’ expectations and earlier this year released Our Cooperative Roadmap with strategic areas the cooperative is focusing on for both its future and the benefits of members. One of the key focuses in the Roadmap is system optimization. The cooperative is engaging in several proactive practices to increase system performance, while also bringing innovative technology solutions on board to assist in demand monitoring, outage resolution, and fire mitigation. 

A few years ago, United Power’s operations team shifted its maintenance strategy to focus on areas of the system that were falling short of performance goals. Utilizing a sophisticated network of grid tracking technology, the cooperative is able to identify specific areas that need improvement and plan targeted maintenance projects. Since the new strategy launched, the cooperative’s outage times have been reduced by nearly half. 

The cooperative’s outage restoration and response is also aided by the rapid adoption of innovative smart devices deployed throughout the distribution system. These automated field devices not only aid in the dissemination of tracking data that informs United Power’s maintenance strategy, but also allow the cooperative to restore power remotely in the event of an outage without having to dispatch crews. They fall into a varying spectrum from simple to complex, but work in conjunction to identify, isolate, and, when possible, resolve faults. 

Design and construction teams are regularly reviewing emerging solutions to improve reliability and provide better tracking information. While the most prominent and immediately recognizable elements of the system are poles and power lines, United Power also manages nearly 18,000 streetlights across its service area. More than 3,000 now include LED smart node technology that communicates lighting issues directly to the cooperative. The technology is both energy efficient and cost effective because it provides information crews can use to ensure proper equipment and materials are collected before being dispatched. Smart nodes are now the default for new streetlight installations, and the cooperative works with each community to convert older technology to the new alternative.

A system that functions reliably must also function safely. United Power serves two mountain canyons at a time in Colorado when wildfire risk has spiked. The cooperative published its fire mitigation plan a few years ago and updates it annually to include new elements that are proven to reduce risk and improve safety. Previous updates have included the installation of new technology and updated construction standards; and this year included the addition of new protocols during Red Flag Warnings. These new procotols govern the system’s response when infererence to electric flow is detected and when fire danger is at its highest. While power can be restored once interference is cleared in most cases, United Power requires crews to investigate causes when Red Flag Warnings are issued. Although an outage is never convenient, preventing a wildfire is critical to member and community safety. 

United Power is proud to manage a comprehensive maintenance plan that has produced one of the most reliable systems in the country. As cooperative members, you can rest assured co-op leadership is actively pursing the best resources for a reliable and safe system, and doing so in the most cost-effective manner to control member rates.