New Rates will be Effective Jan. 1, 2019

United Power’s Board of Directors approved a rate change for 2019 that separates energy and demand charges and includes a modest 1.5-2% rate increase for most members. The new rates will be effective with January 1, 2019 electric use, so members will see these changes reflected on their February 2019 bills. 

Since the cooperative began using the advanced metering infrastructure several years ago, we are now able to better measure every member’s impact on the electric system. The new rates break apart the blended rate members have paid in the past, incorporating both an energy charge and a demand charge. 

The new rates allow United Power to more fairly charge members for both their energy consumption and their impact on the delivery grid. 

“We always weigh multiple factors when considering a rate change,” stated Dean Hubbuck, Director of Power Supply and Rates. “The board takes several months to really evaluate our extensive cost of service study, and then considers our budget when setting rates for the coming year.  We are pleased that the rate increase is small, and that members will have more ways to manage their energy bill.”

There have been multiple articles in previous issues of the United Newsline talking about how demand is determined, and how to reduce it. Additionally, the actual demand was added to most bills earlier this year with a zero amount, so members could begin to see how their actions affect their demand.  

The new rate structure will assign a one-dollar per kW charge to the demand component, and members will see a corresponding drop in the cost of the energy. Now members can affect their electric bill in two different ways – reducing their demand by staggering their use of appliances and by simply using less energy. So, while rates are increasing next year, the change in the rate structure gives members more power to control their bill than in the past.

The changes to the rates affect all existing residential, time of use and small commercial rates. The rate change also includes the addition of a new Smart Choice Rate that takes the demand concept a step further. 

This new Smart Choice Rate provides two different peak demand charges, and a much lower energy charge than with any other rate. The higher demand charges and lower energy charges may work well for a member who is willing to shift their demand throughout the day and night, and actively monitor their use. 

In the past year United Power has rolled out access to the Power Portal, a way for members to look at their energy use in near real time (Read more about the Power Portal). The portal provides information about how the member is using power in 15-minute increments.  This is a powerful tool to help members manage their energy use and see how they are impacting the power grid. Used in tandem with the demand rates, the Power Portal will provide the information members need to make good energy choices.

“By using the Power Portal and monitoring how they use appliances in their homes, members will have a greater ability to manage their energy costs than at any time in the past,” stated Hubbuck. “We think we have a new rate structure that really meets the needs of our members – whether they want to take an active role in keeping their costs down, or if they simply want a fair rate they don’t have to think about.”

Providing commercial members with efficient ways to help them save money and conserve energy is one of the many ways United Power partners with and gives back to its communities. In October, the cooperative presented Vestas, one of its largest commercial members, with a rebate check for $94,000 following a large-scale LED retrofit completed earlier this year. 

The rebate program is in partnership with Tri-State Generation & Transmission, the cooperative’s wholesale power provider. 

Before the installation of new lighting, the facility was using fluorescent lighting, which can dim over time creating “dark spots” throughout the work floor. This can result in inadequate lighting for workers and cause potential safety concerns. 

In total, Vestas replaced lighting in five sections of its plant, including the main work areas. The clean quality of LED lighting provides workers with more consistent, reliable light, and because LED lighting is so efficient, also cuts energy use. The overhaul cut energy use in some areas of the plant nearly in half. 

United Power makes energy savings easy through its commercial energy audit programs and rebates on select energy improvement projects. The cooperative also offers no-cost services to commercial members, including energy efficiency walkthroughs and analyses. 

These incentives and programs from Tri-State G&T and United Power are available to all commercial and industrial members. Similar rebates are also available to residential members. Learn more at www.unitedpower.com/rebates.  
 

Utilities throw around terms like distribution system, electric infrastructure and “the grid.” But as an electric consumer – and cooperative member – have you given much thought into how you use the electric system, and your role in maintaining that system? 

Our distribution electric system, or grid, is a network of poles, wires, transformers and substations – all interconnected to deliver the power you need, when you need it. The system is carefully engineered to meet the needs of the energy consumers connected to it, while ensuring the installation, operation and maintenance is economical. 

Costs to maintain the system aren’t just based on the power you buy, system infrastructure costs are also attributed to how much power you use at a given time. When you use more power at once, you’re creating a higher demand on the system. These surges in demand have a greater impact on the grid, so they cost more money. 

With the traditional blended rate where the impact of demand surges is rolled up into a charge based on the power used, some members have been paying more than they should, while others aren’t paying enough. But here’s the thing: whether you use a lot of energy, a little energy, or generate your own, we all need a reliable grid to be there when we need it. 

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

If you want more information on how you use power, login to the Power Portal to view your usage and demand trends. Visit www.unitedpower.com/powerportal to begin. Find your high demand periods, think back to what was running in your home, and then stagger those appliances moving forward. The grid, and your wallet, will thank you. 

If you have additional questions about the demand rate and how it will impact you, email unitednewsline@unitedpower.com.

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. 
 

In October, United Power connected its 3,000th member-owned rooftop solar installation, celebrating a significant milestone for the cooperative. 

United Power has seen rapid growth and adoption of solar power as a renewable energy option among its members over the past few years. According to the 2017 Smart Electric Power Association (SEPA), only Xcel Energy ranks higher in connected solar among electric utilities in Colorado. United Power also ranked 5th among cooperatives nationally for connected solar.

Member-owned solar connections account for more than 3 percent of United Power’s total meters, and produce almost 30 million kWhs of energy annually. 

Since powering Sol Partners, Colorado’s first community solar farm, in 2009, United Power has been at the forefront of adopting solar energy projects that both reduce carbon emissions and make economic sense. 

Today, the cooperative has four utility-scale solar farms powering our members. These systems provide local solar energy 
system-wide, purchased at a predictable cost – providing an environmental benefit and adding some rate stability for members.