United Power held a member forum on June 7 to discuss the upcoming exit from its current wholesale power contract and highlight opportunities to purchase low cost, high reliability power that is produced in an environmentally responsible manner. In April, the cooperative filed a nonconditional Notice of Intent to Withdraw from Tri-State Generation and Transmission, reaffirming its decision to leave its wholesale power supplier. The withdrawal is effective May 1, 2024. 

Mark A. Gabriel, United Power’s President and Chief Executive Officer, and Dean Hubbuck, the cooperative’s Chief Energy Resources Officer, discussed the exit process, goals of the transition, and impact to members with both in person and virtual attendees. Gabriel reassured members the shift in power suppliers would not affect their status as members of the cooperative and the exit was ultimately about controlling costs and potentially lowering rates. 

“We’re working diligently so that we can save money,” Gabriel said. “If we can control costs and if we can manage to get better pricing out in the market, we are able then to lower rates. I think that’s something that’s critical as a member-owned cooperative.”

Hubbuck provided a high-level overview of various steps the cooperative has taken to negotiate a fair and equitable contract termination fee through the Federal Energy Regulatory Commission, including several recent decisions in favor of United Power, and its recent request for proposal (RFP) for new power supply. 

“We are expecting a healthy response to our RFP, which is due in the early part of August,” Hubbuck said. “We’ll spend about two months evaluating proposals before selecting a handful of suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.” 

United Power has attempted to negotiate contract modifications with its wholesale power supplier, including an option for partial requirements, but has been met with resistance. The current contract no longer makes economic sense for the cooperative or its members. It limits local generation and member flexibility while rates are well above market price. 

“Historically, our wholesale power contract was entered into because, at that time, our most pressing issue was to secure a reliable source of power when very few viable options were available,” said Beth Martin, United Power’s Board Chairman. “Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available. We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save."

More information about United Power’s contract negotiations and transition to new power suppliers is available on the Power Supply page. Members who were unable to attend the Power Supply Forum can watch it here. 

Brighton, Colo. - The Federal Energy Regulatory Commission (FERC) this week issued four initial decisions as part of the rate settlement proceedings between United Power, an electric cooperative headquartered in Brighton, Colo., and its wholesale power supplier Tri-State Generation and Transmission Association, Inc. (Tri-State). 

On May 26, FERC Administrative Law Judge Scott Hempling handed down decisions in the cooperative’s favor on three of four issues and ordered Tri-State to give United Power significant refunds concerning energy storage resources (i.e., battery storage). 

As one of the settling parties, United Power agreed to the rate settlement at FERC after four key issues were reserved and set for hearing this spring: transmission and delivery system cost unbundling, direct assignment of non-networked delivery facilities (cost causation), energy storage resources, and the discriminatory nature of Tri-State’s Board Policy 119 (BP 119) regarding community solar programs.

“These rulings are significant as they will provide long term benefits to all Tri-State cooperative and their members, in identifying and controlling system costs and assuring the costs are allocated to those who benefit,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “The decision will also impact Tri-State’s claims in the contract termination payment methodology currently awaiting FERC decision, and guide the future work of Tri-State’s rate design committee as the ruling dictates rate structure, ultimately mandating more transparency to all Tri-State members.”

Under the rulings in favor of United Power, FERC determined that Tri-State must unbundle its rates into generation, transmission, and each of the six ancillary services, assuring that the costs of each element are properly identified and disclosed. The FERC judge also determined that Tri-State’s 2023 come-back filing must explain the integration status of each element using appropriate accounting and engineering data, allocating the associated costs accordingly so that facilities used to deliver electric power are properly identified and the costs allocated to those who use them known as “cost causation.” Further, it was found that Tri-State’s special policy for certain community solar programs (BP 119) is unduly discriminatory. This results from a cost-benefit ratio that varies widely depending on a member’s size. Judge Hempling characterized this mismatch of costs and benefits under BP 119 as “textbook undue discrimination.”

A split decision was issued regarding energy storage resources. It was found that Tri-State improperly charged United Power and must provide refunds from September 2019 forward. Judge Hempling specifically ruled that Tri-State cannot use board policies to manipulate the contract and filed rate terms. He also ruled that Tri-State’s inconsistent treatment of energy storage resources is unduly discriminatory, but resolution of that issue was outside the scope of the proceeding. 

“The reserved issues before FERC are ahead of the rate settlement case being heard in Washington, D.C., and final rulings on these issues bring United Power closer to our contract termination payment determination,” said Gabriel. “We are pleased with the fair outcomes of these rulings by FERC and look forward to the day when United Power has more control of the power supply mix serving our members.”

United Power filed a non-conditional Notice of Intent to Withdraw from Tri-State, effective May 1, 2024, and simultaneously issued a request for proposals for up to 600 MW of wholesale electric supply. A ruling from the presiding FERC judge on exit fees for Tri-State members is expected by the end of the summer, with a final decision expected in 2023.

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.

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Five Directors Earn Gold Certificate; Two Earn CCD

United Power’s Board of Directors is committed to continuing education opportunities that enable them to govern the cooperative more effectively and stay informed about industry changes. In the past few months, several directors have completed or renewed director certifications through the National Rural Electric Cooperative Association (NRECA). The cooperative’s two newest directors, Stephen Whiteside and Brad Case, received their Credentialed Cooperative Director (CCD) certificates late last year, and Dave Rose earned his Director Gold certification. Directors Tim Erickson, James Vigesaa, Ginny Buczek, and Elizabeth Martin have also recently renewed their Director Gold certificates.

NRECA’s three-step Director Education Program is designed to teach essential skills and knowledge through a series of educational courses. The first step in the process is the CCD, which helps prepare directors to fulfill their fiduciary duty as elected officials on behalf of their membership. Once the program has been completed, directors can proceed to the Board Leadership Certificate (BLC). Directors who have completed both the CCD and BLC, plus an additional three BLC credits, are eligible to earn Director Gold certification. To maintain Director Gold certification, directors must earn at least three credits from approved continuing education courses within a two-year period.

All of United Power’s directors are committed to achieving the highest levels of certification and professional training for the benefit of the cooperative and the members they represent. As of February, all eleven directors have completed at least the CCD certification and nine directors have received Director Gold certification.

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.   

Retirement of $4.5 Million on its way to Members Beginning in Late May

United Power is more than your local electric utility and you are more than a consumer. Over the past two years, we have had to navigate pandemic restrictions, making provisions for the health of the cooperative and also to support our members. The decisions we made were not to satisfy invisible investors or generate profits, but to serve our members and our communities. It is just part of what makes cooperative membership different.

Another member benefit that sets us apart is the retirement of capital credits. This year, our members will be part of United Power’s 16th consecutive retirement. If you are new to the cooperative or unfamiliar with this process, capital credits represent your investment in the co-op. Here’s how it works:

Becoming a Member

The moment you start receiving electric service from United Power, you become a member and an owner of the cooperative. As a member, you have unique privileges, one of which is economic participation. A portion of each electric bill you pay goes toward the cooperative’s operation and infrastructure, which you have an ownership stake in. Members may also vote annually in board elections or run for a seat on the Board to make their voices heard. (A full recap of the 2022 Annual Meeting is available on page 10.) By actively engaging and participating with the cooperative, you will always have a voice in our operation.

Allocation of Capital Credits

Every spring, United Power looks at the prior year and any funds remaining after all expenses have been paid are allocated to members based on the prior year’s electric consumption – the more power you use, the larger your allocation will be.

The allocation is not a check, but a representation of your ownership in the cooperative, i.e. the amount of money you have invested into the electric system based on your electric consumption. The funds are tracked, but not accessible in the form of cash. You are notified of your allocation amount on your bill in May each year.

Retirement of Capital Credits

Annually, the Board of Directors carefully assesses the financial condition of the cooperative and determines what amount of capital credits are eligible for retirement. If the Board decides a retirement is feasible, the money is paid out, or “retired,” from each member’s account. This year, the Board approved a $4.5 million retirement. Those retirements will be distributed beginning in late May.

Anyone who had service in 2021 or earlier will be eligible to receive a refund. Refunds more than $50 will arrive as a check, and members who receive a refund less than $50 will see it reflected on their billing statement as a credit. Look for this credit on your bill in May or June.

“There isn’t a more tangible benefit of cooperative membership than receiving money back on your investment in the utility itself,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “Your investment not only makes you an owner, but helps ensure the resiliency of our system, the reliability of your power, and the affordability of our rates. It is a tangible representation of your value as both a member and an owner.”

Capital credit retirements have returned a steady stream of money back to members in recent years. During the last 15 years, the cooperative has been able to retire millions of dollars back to its members.

Want to learn more about capital credits? Frequently asked questions can be found at www.unitedpower.com or you can call a member services representative at 303-637-1300.

IMPORTANT REMINDERS

If you move, please be sure to leave your new address with us so we can continue to refund any capital credits you are eligible to receive in the future.

Upon death, the deceased member’s capital credit account is available for estate retirement. The representative of the estate should contact United Power to settle the capital credit account.

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.

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Martin Elected as New Board Chairman, Vigesaa Elected Vice-Chairman

Brighton, CO – The United Power Board of Directors elected new officers at its regular meeting in April. Directors elected Elizabeth “Beth” A. Martin to serve as the new chairman and James Vigesaa to fill the vice-chairman’s position. Keith Alquist, treasurer; Tim Erickson, secretary; and Tamra Waltemath, assistant secretary/treasurer, each retained their existing officer roles. The Board elects new officers at its regular meeting following the cooperative’s Annual Meeting each year.

Martin, who was re-elected at this year’s Annual Meeting held on April 13, replaces Ursula J. Morgan as chairman. Morgan had served in the position the previous two years. Since her election to the Board in 2010, Martin has filled several officer positions, including vice-chairman, secretary, and assistant secretary/treasurer.

Vigesaa was elected to fill the vice-chairman position vacated by Martin after moving to chairman. He was elected to the Board in 2011 and previously served as chairman from 2017-2019.

Keith Alquist and Tamra Waltemath, both elected to the Board in 2017, have served as treasurer and assistant secretary/treasurer, respectively, since 2019. Tim Erickson, who was elected in 2009, succeeded Martin as secretary in 2020.

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.

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New Fast Charger is Third in Cooperative’s Network

Brighton, CO – United Power announced its third public electric vehicle (EV) fast charging station at a ribbon cutting event on Wednesday. The newest charging station in the cooperative’s growing network is located at its Carbon Valley office along Interstate 25, just south of Longmont, and fills a 30-mile gap in available charging options between Thornton and Loveland. All three charging stations are part of the ChargePoint network.

“Nearly 5,000 United Power members own electric vehicles,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “We stand committed to strategically deploying a charging network capable of supporting our members and the thousands of others who commute daily throughout our territory.”

The charging station at United Power’s Carbon Valley Service Center is a 62.5 kW direct current (DC) fast charger available for anyone who has set up a ChargePoint account. Individuals may create an account using ChargePoint’s mobile app or an activation card available through the mail. The charging station was installed with the help of a grant from Tri-State Generation & Transmission.

United Power has paid careful attention to the growing electric and plug-in hybrid vehicle markets and rapid adoption of the technology among its members. The cooperative’s first charging station was installed at its Coal Creek office in 2019, and its second was added at Keenesburg’s Market Street Mart in 2021. These strategic locations fill gaps where charging was previously unavailable and made EV ownership more feasible for rural members. An online educational portal, savings calculator and additional resources are available for members interested in EVs at ChooseEV.

“Our goal is making electric vehicle ownership more practical and accessible for more of our members, especially those who live in rural areas,” Gabriel said. “We do that by considering the appropriate opportunities and the right programs that meet the needs of our members.”

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.

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