Beginning this fall, United Power residential members will begin to see a new line of information on their bill – the ‘Demand Charge.’  For the remainder of 2018, members will see a number of kW multiplied by a zero dollar amount.  This number represents the highest level of ‘demand’ that your electric consumption creates on our system, and there is currently no cost assigned to that demand.  

While it is simply a way for you to begin understanding how you impact the electric grid today, it will eventually become a way for members to 
control and impact their own electric bills in the coming years.

What’s in your rate?

Today your rate incorporates many different costs – the cost of fuels to generate electricity, the cost to deliver the energy to your home, the cost to the electric cooperative to maintain and repair the system, even the cost of billing is included in the rates you pay. Residential members have been paying a blended bill for a long time, because most members use power in a very similar way. However, we now have access to more information about how individual members use power. We have information about every member’s energy consumption in 15 minute increments, and we can actually determine how individual households are impacting our system. This additional information allows us to break apart the various components of your electric bill and charge you more precisely for the two largest components of your bill: your impact on the electric system, or your ‘demand’ on the system, and amount of power you consume – your energy use. 

So, what is ‘demand’?

The demand charge that United Power will show on your bill is the highest amount of electricity used during a 15 minute period in that billing month. 

Here’s a simple demonstration:

Both Mary and Joe use the same amount of energy, but Joe’s demand is higher since he is using his appliances simultaneously. Mary has a lower demand because she’s staggering the use of her appliances.  

It costs more for the cooperative to serve Joe’s home than it does to serve Mary’s because we need to have the ability to produce and deliver the energy for both appliances at the same time.  We may have to plan to have additional electric generation plants or increase system resources to meet Joe’s higher demand and that comes at a cost to the entire co-op.  Under the new demand rate, if Joe continues to use power the same way his bill will be higher than in the past and Mary will see a savings. While these changes tend to be small for most households, the new rate structure will more closely represent the actual cost to provide that power.

Now is the time to study the demand number printed on your bill and determine how you impact our electric system. In 2019, our members will begin to see a cost attached to the demand portion of the bill, and a corresponding reduction in the cost of energy. While this new rate structure will provide a fairer bill for each of our members, it’s important that you understand how your behavior affects your demand. To help you understand demand, we will be providing a series of articles in upcoming issues of United Newsline and on our website.

Residents of the Town of Frederick have affirmed the purchase of the Town of Frederick’s municipal utility, which was agreed to earlier by the Town Council and United Power representatives. The Town’s website reported that the sale of the Town’s assets was affirmed by residents with a 1,716 to 236 count. Nearly 88% of all voters indicated their support for United Power to purchase the system.

“We are excited about bringing the entire Town of Frederick into the United Power membership,” stated John Parker, United Power CEO. “We want to express our thanks to the citizens of Frederick for their support in this process, and we will be working hard to make this transition a seamless process for them.”

The vote was a key step to finalize the purchase. The two entities agreed upon a purchase price of $18 million, with United Power agreeing to drop its pending lawsuit against the Town in exchange. United Power originally filed suit against the Town in July of 2017, for breach of contract and to recover damages for the Town’s taking of service rights located within United Power’s certificated territory. The suit was filed after an attempt to negotiate a settlement failed in early 2017.

“United Power has assembled a transition team that includes key engineering, operations, and member services personnel to work on this acquisition,” stated Parker. “The citizens of Frederick can be assured that we will work as quickly as possible to complete this project, and we will be working hard behind the scenes to meet all your expectations in regard to this sale.”

The election results will not be official until July 6, 2018, in order to allow for the statute-required length of time for overseas military ballots and signature verification processes to be completed.

United Power members have reported receiving phone calls from individuals claiming to be representatives of the cooperative and demanding payment for past due account balances. In an effort to protect its members, United Power proactively warns about the potential for phone scams.

The cooperative never calls members in person to collect overdue payments on account balances. Notice of delinquency or disconnection is sent via mail and followed up with an automated phone message instructing members to initiate payment at the closest United Power office, online or through the SmartHub app on their phone. The cooperative will also never require or demand prepaid debit or MoneyPak as the only forms of payment.

Some scammers use sophisticated software to disguise their phone number so that it appears to be coming from a recognized United Power service line. This is known as “caller ID spoofing.” Others instruct members to call a 1-800 number, which may also use United Power messaging. The cooperative does not maintain a 1-800 number, and warns members not to be fooled by false messaging from scammers.

To keep up with the current status of your electric account, reference your monthly statement, check your account via SmartHub (available free to members as a smart phone app, as well) or call United Power’s Member Services Department at 303-637-1300. If you are ever in doubt about a potential scam call, hang up and call United Power at 303-659-0551.