Demand Rate Addresses How We Use it Differently

United Power switched to a demand rate in January 2019 as a way to more fairly charge its members for their electric usage and impact on the cooperative’s system. Since its roll out, some members have asked why the switch was made and requested more information about demand and how to understand it.

Electric utilities like United Power often use terms like “distribution system,” “electric infrastructure” and “grid.” These terms refer to the interconnected network of poles, wires, transformers and substations that work to deliver — or distribute — power to members. The system is carefully engineered to meet the needs of more than 100,000 meters and the homes and businesses served off those meters.

Like any other household appliance or electronic device, pieces of our system wear out over time and need to be repaired, replaced or even upgraded to improve reliability. These maintenance costs aren’t based solely on how much power you use, however, but how and when you use it.

When you use more power at once, you’re creating a higher demand on the system. These demand surges have a greater impact on the grid.

For example, a member in a small apartment with a window air conditioning unit doesn’t have the same impact on the grid as a household with two air conditioning units and a hot tub.

Some devices on the system have capacity limitations, for example, meaning they can only maintain a certain amount of power at a given time. The cooperative places these devices strategically to ensure power reliability. When one household served off that device uses a larger share of energy, it causes more wear on it. In some cases, the cooperative may need to replace existing devices with higher capacity ones to accommodate increases in energy usage.

With the traditional blended rate, which bundles demand and energy usage, each United Power member shares an equal cost in the maintenance of the system despite using it in vastly different ways. This means some members have been paying more than they should, while others aren’t paying enough. Whether you use a lot of energy or a little, or even generate your own, a reliable grid is something we all depend on and need available to us.

By separating the demand and energy components on your bill, we are more fairly distributing these costs to members based on how they use power. Each member now pays their fair share of the cooperative distribution system they rely on.

United Power offers a free online resource for members who want to know more about how they use power. Power Portal breaks down your energy usage in 15-minute intervals so you can easily tell what habits are contributing to your demand. Visit Power Portal to learn more about this member resource.

If you have additional questions about the demand rate, you can go to Understanding Demand or reach one of our dedicated energy management specialists at 303-637-1300.

Demand for Electricity is like Demand for Water

You can fill the same 5-gallon bucket with either a garden hose, or a fire hose. A garden hose will not fill as quickly – but the hose costs less to operate, and the impact on the water system is minimal. Fill that same bucket with a fire hose, and it will fill up very quickly, but the surge of water from a fire hose requires larger pipes and a more expensive hose. In the end, both buckets would be full with the same amount of water, but filling a bucket more slowly – smoothing the water use over time – creates less demand on the system and costs less to do. 
 

Message From United Power's President & CEO

There has been much written in recent months about the dynamics between United Power and Tri-State Generation & Transmission. This has resulted in a significant amount of unneeded expense and tension between the two organizations as well as among at least seven other Tri-State members.

It is important to understand United Power’s position in this conversation:

• We need a strong Tri-State G&T, and we need a Tri-State that recognizes the issues faced across our industry and communities.
• We need a powerful transmission organization like Tri-State to assure our place as a Regional Transmission Organization (RTO) comes to the West, and as additional resources are added to our fuel mix and the grid becomes more critical and complex.
• We need our G&T to be responsive in driving down costs to help our rural economies and to support the growing membership demand for a cleaner, carbon-reduced future. And we need to make sure the exit from coal is rapidly executed while supporting the communities that will suffer in the short term from job and revenue loss.
• We need Tri-State to realize the dynamics of a changing industry mean more of our members want to generate electricity locally, to be untethered from fossil-based resources and released from the paradigm of centralized generation that is decades old. This will require a dramatic new business model, deep cost cutting and jettisoning of inefficient generation even in the face of financial hurdles.

To achieve this goal means a radical re-envisioning of the G&T model, one in which utility members can purchase as much – or as little – power as they need to support their communities; one in which Tri-State operates its grid on the basis of formalized tariffs, such as an Open Access Transmission Tariff (OATT), rather than “Hotel California” rules, where you can get in but never leave; one in which the G&T is the hub for renewable aggregation while not crippling the spokes; and one that is focused on the lowest possible costs and the needs of all its members, big and small.

It is important to be clear that the drive to remove coal from the fuel mix is only tangentially connected to regulation and political whim. It is tied 100% to the low cost of natural gas, coupled with the decreasing costs of renewable energy. This is economics, not politics. This disagreement has resulted in significant legal expenditures, tensions and burdens on staff and has not helped move the needle toward a low-cost, flexible, carbon-reduced environment.

United Power does not necessarily want to terminate its contract with Tri-State, although obtaining a reasonable price for termination would be a starting point for any analysis.

• United Power wants to continue to buy a defined amount of generation (capacity and energy) from Tri-State and has offered to do so.
• United Power wants to be an OATT customer and has offered to make this transition.
• United Power wants to buy additional energy from Tri-State at competitive prices when markets come to the West in the next 24 months.
• United Power wants to be able to buy as much energy generated in its service territory as its members want to provide. Our current Tri-State contract limits us to purchasing no more than 5% of our total power from local renewable resources.

It is illogical in a world that is moving to carbon-free resources that our members are not permitted to build and offer such resources. United Power intends to continue to be a leader in storage technology, which helps Tri-State avoid peaks and high demand, allows Tri-State to reduce its carbon footprint and smooths our transmission congestion.

In sum, United Power wants a strong, responsive and low-cost partner in Tri-State and the freedom to support our members with low-cost, clean and reliable power. Tri-State should be leading the change to a new G&T structure to address the energy needs of the future and help its member cooperatives better serve the individuals and families on their lines.

Please feel free to reach out to me if you have any questions or comments.

Modernization of the electric grid should not be the singular focus of spending in the United States, rather we should also be targeting our efforts and dollars at specific projects that will make the most immediate impacts. Billions are spent every year on upgrading the system and adding intelligence to the grid and are always balanced against the impacts on rates and customers. Even with unlimited checkbooks on transmission – California and Texas are great examples – system issues can occur.

As a country, we should dream big but equally critical are to make improvements that can have an immediate impact on improving the nation’s infrastructure. The vision of seven hundred and sixty-five megawatt lines crisscrossing the U.S. is a “BHAG” – big, hairy audacious goal – that should be pursued.

However, with even the simplest transmission project taking a decade or more, we should take some specific, short- and medium-term actions.

It is also important to realize while permitting is slow, money is currently available to invest in transmission. The hang up is in assuring the line will be used and commitments made to guarantee the offtake of power. In other words, if no demand backed by financial arrangements, no construction. So, what projects do I believe can and should be done today?

Rebuild the seven AC/DC ties between the Eastern and Western grid. At a cost of roughly thirty million, this project could be complete in less than eighteen months.

Expand the Mead Substation at Hoover Dam into a renewable energy hub. This project will take between twenty-four to thirty-six months to complete. It is at the base of the El Dorado Valley, connects to California, and is the ideal spot for a robust hub.

Complete the Intertie Project started in 1964. In forty-eight months or less, the two hundred and seventy-five miles of transmission could be built that would loop the Pacific Northwest across the west and into the Southwest Power Pool.

Widen our focus and fund technology that benefits the nation and not just a single region. Concentrate those efforts on grid cybersecurity, as well as advanced system sensing to anticipate and avoid issues.

Another key area is to create a cohesive national effort to enhance wildfire tools and technology, including the expansion of right-of-way tree clearing. Encourage or standardize the use of coated cables, especially in areas when undergrounding is limited by terrain or cost.

Create an incentive structure that supports our end goals for improvements in the grid. Pay higher incentives for the power solutions that are really needed: pay a higher rate of return for lines that serve grids wider than a single state, quit paying for redundant infrastructure, and guarantee offtake as a fundamental component of the incentive structure.

Create real markets that span time zones and weather conditions and empower those entities to support. This should also include an RTO to coordinate offshore wind and provide the trading and management platform.

Finally, recognize that transmission is best suited to fix the growing energy divide. The digital divide is often spoken of in our country when the energy divide is an even greater one to navigate for underserved or unserved communities. The “haves” can afford solar panels and storage, while the “have nots” are paying the price. The haves can create microgrids – which serve a purpose – but also serve to create a balkanized electrical system.

Our current business models hang on an engineering measurement – the kilowatt/megawatt hour paradigm. This paradigm is no longer valid when the haves can move their energy supply off the grid for a portion of the day while the have nots pay the carrying costs. We need to move beyond a simple engineering focus on our grid and the delivery of power and understand the far-reaching effects being created with our inherently uneven system.

The question to be asking is how can we effectively grow our grid to realize all the intrinsic potential, and bring all our citizens along to enjoy those benefits? Let us dream for the future and act for today.

This article recently appeared in August 2021 Public Utilities Fortnightly. Read the original article here. 

Pad-mounted transformers, those big green utility boxes commonly seen around town, serve the purpose of lowering high voltage to standard household voltage used to power electronics, appliances and lighting. These transformers are not protected in the way overhead lines and substations are. Though they may appear safe to use as workbenches and climbing obstacles, electrical equipment can still pose a risk to anyone who may come in contact with them. Members should always use caution and keep a safe distance.

United Power crews also need safe access for repairs and maintenance. Barriers, such as landscaping and fencing, should be kept clear of electrical equipment. While it may be tempting to “camouflage” transformers with landscaping, please remember cooperative crews need at least 10-feet of clearance at the opening of a pad-mounted transformer and four-feet at the rear and sides of the housing. The distance allows crews to safely use tools required for working with energized equipment. It also ensures crews have the ability to move about safely should problems arise.

In many newer subdivisions and residential developments pad-mounted transformers are more common – and in many cases are located on consumer property. These transformers are connected to primary high voltage lines, and secondary lines can extend from the transform in several directions underground. Remember this before planting shrubs or trees, setting fence posts, installing sprinkler systems or digging anywhere near a transformer. And remember, you should always dial 811 before you dig to ensure lines are located so your project doesn’t disrupt utility service, cause serious injury or worse.

Brighton, CO – United Power is now a member of the GridWise Alliance, a national organization which helps foster relationships among a diverse group of industry stakeholders and advocates for public policy changes that benefit grid modernization. The group’s executive committee unanimously approved the cooperative’s membership with the organization in July.

Grid modernization is a moving target that evolves over time as new technology is developed and changes the way energy is produced and managed and how consumers use energy. It typically refers to the system of interconnected devices on a grid that improve reliability and efficiency while ensuring safety. The GridWise Alliance is a collaborate effort among members to develop industry best practices used to direct public policy supporting grid modernization by leveraging their different experiences and perspectives.

“We are a comparatively small player next to some of the larger utilities involved with the GridWise Alliance,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “But we’re also extremely progressive. These types of organizations help us accomplish our goals and what we’re trying to achieve for our members.”

As a member, United Power will be able to contribute its unique perspective on the industry as a fast-growing cooperative serving members in suburban and rural communities northeast of Denver. In June, the Brighton-based co-op became just the 31st electric cooperative nationwide to surpass 100,000 meters and is on past to add several thousand more before the end of the year. The unprecedented growth and progressive reputation of the cooperative have earned it a seat at the table helping direct local and national policy conversations.

“United Power stands out from its cooperative peers for its commitment to grid modernization and deployment of emerging technologies,” said President and Chief Executive Officer Mark A. Gabriel. “As a member of the GridWise Alliance, we have a platform to advocate for policies beneficial to both the cooperative and its members.”

United Power joins Rappahannock as the only other electric cooperative member of the GridWise Alliance. Other prominent members include Con Edison, Dominion Energy and Duke Energy. Non-utility members also include IBM, Intel and General Electric. For more information about the GridWise Alliance, go to www.gridwise.org.

About GridWise Alliance:

The GridWise Alliance (GWA) represents the broad and diverse stakeholders that design, build, and operate the electric grid. Since 2003, the GridWise Alliance has been at the forefront of educating key industry stakeholders on the critical need to modernize our nation’s electricity system. For more information about the GridWise Alliance, visit: www.gridwise.org.

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 cooperatives in the nation, and in June 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. For more information about the cooperative, visit www.unitedpower.com or follow them on social media Facebook, Twitter, LinkedIn, YouTube and Instagram.

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Nominations are Now Open for the Third Round of Grant Recipients

The second-round recipients of Member Choice Grants for 2021 have been selected. United Power is proud to announce Commerce City’s Community Uplift Partnership (CUP) and Soul Dog Rescue, out of Fort Lupton, have been selected from nominations submitted by our members to receive grants this round.

The cooperative introduced Member Choice Grants in early 2020, asking members to nominate nonprofit organizations within the service territory they would like to see us help support. The grant nomination process gives members a voice and helps ensure we are supporting causes they truly care about.

United Power has received several dozen nominations for nonprofit organizations providing a variety of services for those in need within the communities we serve. To submit a nomination for round three, go to www.unitedpower.com/memberchoice.

Community Uplift Partnership

Young adults are some of the most vibrant people in our communities. Community Uplift Partnership (CUP) reminds them they have value beyond a paycheck, strengthens them to conquer barriers to employment opportunities that provide sustainable wages and equips them to make better decisions for the future of their families.

Soul Dog Rescue

Soul Dog Rescue is an animal rescue located in Fort Lupton with the mission to spay/neuter and protect animals. Soul Dog performs collaborative, targeted work, primarily through spay/neuter, in underserved regions in order to create sustainable change and promote cultural shifts regarding the treatment of animals.

Nominations are now open for the third round of Member Choice Grants, which will be announced in an upcoming issue of the United Newsline. Submit a nomination at www.unitedpower.com/memberchoice.

Thanks to Members Like You, United Power is 100,000 Meters Strong

United Power invites members to join in celebrating this meter milestone with the cooperative and with each other at our 100,000 Meter Open House celebration at the Carbon Valley Service Center on August 28. The event will provide members with an opportunity to learn more about the cooperative and see how its newest facility and office location are effectively serving members on the west side of the service territory.

United Power 100,000 Meter Celebration
Saturday, Aug. 28
Open House |  9 a.m. - 12 p.m.
Carbon Valley Service Center - 9586 E I-25 Frontage Road, Longmont

Event Features: 

• Touch-a-Truck, Safety Demos & Safety Booths. Get a close look at United Power's line trucks and learn more about United Power programs. 
• Batter Storage Tours, Free Food & Prizes. Tour Colorado's largest battery storage installation. Enjoy free refreshments and enter prize drawings. 
• Food Drive to Fill the Bucket. Support the Carbon Valley Help Center by bringing a non-perishable food item or cash donation. 

Behind Every Meter is a Co-op Member