United Power held a ribbon-cutting ceremony in December to celebrate its newly energized battery storage facility and the cooperative’s continued commitment to adopting and implementing innovative technology. 

Currently the largest utility-scale battery storage facility in Colorado, the Tesla PowerPack battery system, built in collaboration with ENGIE North America, is expected to save the cooperative roughly $1 million annually in wholesale capacity charges. Energy generated from all sources on United Power’s grid will be stored during low-demand hours to be discharged during high-peak periods throughout the year. 

“As a co-op, we have an obligation to our communities and members to continue scanning the horizon and exploring innovative technologies that help distribute affordable and reliable power,” said Jerry Marizza, United Power’s New Business Director. “When we stop looking ahead, that’s when we start falling behind. We hope to continue setting the bar for other utilities to follow.”

The system has the capacity to store and distribute up to four megawatts of energy, or enough to power up to 700 homes simultaneously. Size and duration of the batteries used was determined during a study of United Power’s monthly load profile in early 2018.

“Energy storage is the next logical step to integrating more renewables into the grid,” said Marizza. “As long as people want to watch television at night, renewables can’t provide 100 percent of energy needs without storage.”

Over the past few years, United Power has added other innovative and renewable projects to benefit its members. From Colorado’s first community solar farm to methane gas collection at the Erie landfills, these projects make economic sense for our members while providing reliable power.

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.”

Earlier this month, United Power went live with its much anticipated battery storage facility at its new west office, located on the I-25 Frontage Road south of state Highway 119. The project, developed in collaboration with ENGIE, is the largest utility battery storage facility in Colorado. 

The introduction of battery storage to United Power’s portfolio will allow the cooperative to save an expected $1 million each year in wholesale capacity charges. Energy generated from all sources on United Power’s grid will be stored during low-demand hours to be discharged during high-peak periods throughout the year. 

United Power’s primary goal for its battery storage facility is peak shaving, but it also better positions the cooperative to respond to future innovation and development within the energy environment. 

“Understanding storage is the next logical step in the progression of renewable generation,” said Jerry Marizza, United Power’s New Business Director. “Without the ability to store energy, renewables will have an artificial cap placed on its utilization.” 

On bright days when the sun is shining, solar fields may collect more energy than can be immediately used. Without proper storage capabilities, that excess energy is lost. Allowing the capture of both wind and solar energy produced at off-peak times when demand is low conserves energy and saves money.

“As a co-op, we have an obligation to our communities and individual members to explore these new options to meet this ever changing energy environment,” Marizza said. 

The Tesla battery system United Power and ENGIE utilized for this project is a larger version of the lithium ion battery found in Tesla’s popular electric vehicles. Through years of testing and refinement, Tesla batteries have become the industry standard in energy storage. 

The system has the capacity to store and distribute up to four megawatts of energy, or enough to power up to 700 homes simultaneously. Size and duration of the batteries used was determined during a study of United Power’s monthly load profile.

“As one of the fastest growing co-ops in Colorado, United Power wants to stay ahead of the curve when it comes to integrating new technology that can help boost reliability and keep costs down,” said John Parker, United Power CEO, during the project announcement this past year. “Energy storage will play an important role in the grid of the future, and we’re excited to be starting now.”

The new battery storage facility builds on United Power’s reputation for adopting and implementing innovative technology, such as the Sol Partners Cooperative Solar Farm – the first of its kind in Colorado – and Methane to Megawatts Project at the Erie Landfill – only the second of its kind in the state. More than just renewables, these projects also make economic sense for our members while providing reliable energy. 

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.