Capital Credit Retirement to Distribute $4.5 Million to Members in August

Even if you’re new to the cooperative world, you’ve probably heard membership has its benefits. Maybe you’ve already heard how consumer membership works or you understand the ability to participate in annual director elections. Perhaps someone you know ran for a seat in a previous election. But you may be confused in the coming weeks when you receive a check in the mail from United Power with your name on it — your little “piece of the pie.”

When you make a payment to United Power, a portion of that payment goes directly toward your investment in our electrical system through capital improvements. These improvements help maintain our system, provide reliable energy to you and your neighbors and propel us into the future. 

However, capital improvements aren’t always necessary, leaving the cooperative with a surplus of funds earmarked for these projects. So, each year, the Board of Directors assesses the cooperative’s financial condition and determines if a “capital credit retirement” period is feasible. This year, the board approved a $4.5 million retirement, to be distributed to members in August. 

Capital credit retirements are the refund amounts members receive during this period. United Power establishes a capital credit account for every member, and uses it to record their investment. Each year funds remaining after expenses are allocated to these accounts. Upon board approval, a percentage of these funds may be retired. This year’s retirement represents the 12th consecutive year United Power has retired capital credits. 

Your capital credit amount is determined based on two factors: how much electricity you use and how long you’ve been a member. The longer you are a member and the more power you use, the larger your share of each retirement. 

“United Power has a commitment to providing reliable energy to our members, but we also prioritize doing so at an affordable rate,” said John Parker, United Power’s Chief Executive Officer. “While we talk a lot about the benefits we provide to our members both individually and in the community, receiving something you can hold in your hands is a meaningful benefit, and one that differentiates cooperatives from other utilities across the country.” 

This year, more than 80,000 checks will be issued to residential and business members. Anyone who had service in 2017 or earlier will be eligible for this year’s capital credit retirement. While many members will receive a check, anyone who is refunded an amount less than $10 will receive it as a credit on their bill. Look for this credit on your bill in August or September. 

United Power issues checks because it’s important for members to see the real benefit of membership, and handling a check achieves that goal. 

“We know some checks won’t pay the rent, but it does provide a little extra cash to tide someone over until their next paycheck,” said Parker. “For our larger users, like local businesses, municipalities, farms and school districts, these checks may have a substantial impact.”

Capital credit retirements have returned a steady stream of money back to members in recent years. During the past decade, United Power has been able to retire millions of dollars back to its members. 

Frequently asked questions about capital credits can be found online 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. 

In June, United Power proudly joined with local electric cooperatives from around the country to sponsor teenagers from small towns and cities to spend a week in the nation’s capital learning about the political process and interacting with their elected officials. The Electric Cooperative Youth Tour has been a tradition among cooperatives since the late 1950s.

The origins of the Youth Tour date back to the National Rural Electric Cooperative Association’s 1957 annual meeting in Chicago, where keynote speaker and future president Lyndon B. Johnson suggested sending youth to the capital to “actually see what the flag stands for and represents.” 

What began with a small group of 34 students from Iowa in 1958 has since ballooned to nearly 2,000 students from 42 states. To date, nearly 50,000 students have participated in the program.

This year, United Power sponsored three local students to represent the cooperative during the 2018 Youth Tour – Hannah Rockwell of Weld Central High School, Jordyn Saffy of Eagle Ridge Academy, and Megan Lewis of Frederick High School.

Between meetings with elected officials, learning the value of the cooperatives they represent and developing leadership skills, students were able to spend time touring some of Washington D.C.’s landmarks and memorials. Before flying out, Colorado students were also treated to a high-voltage safety demonstration at United Power’s headquarters in Brighton, Colo. 

Each year United Power selects three ambitious high school students to attend Youth Tour. Applications to represent the cooperative during next year’s tour will be available in December. 
 

Training Yard Offers New Possibilities for Linemen Training

If you’ve driven by United Power’s headquarters off I-76 in Brighton, you may have noticed the series of poles and wires going up along the eastern edge of its property. Earlier this year, the cooperative began construction on its new, state-of-the-art outdoor linemen training facility. 

Once completed, the new training yard will feature multiple phases for linemen to practice and prepare for real scenarios they may encounter in the field. The two most prominent phases visible at the moment are the high poles, situated throughout the training yard, and the short poles, along the southern side of the yard. 

While high poles are standard place on utility training yards and in linemen schools, short poles are an innovative idea brought to the cooperative all the way from Las Vegas through journeyman lineman Jeff Soole. These allow linemen to practice regular maintenance and upgrades while instructors are able to watch from below. 

“It’s a training tool with endless possibilities,” said Operations Superintendent Mike Lanckriet. “It can be what we need it to be whenever we need it. It has the ability to constantly evolve depending on what we need to train for.” 

Before construction of the training yard, linemen often had to learn by watching more experienced linemen in the field. However, even experienced linemen may encounter rare or unknown situations. The training yard allows them to train for both rare and routine tasks. 

In addition to training current linemen on various tasks and responsibilities, it has already proven useful in helping attract more qualified and capable linemen to join the Operations team.

“It’s not going to be as large as a training yard at a line school, but once it’s completed it will be comparable,” Lanckriet said. 

United Power is one of the state’s first cooperatives to begin construction on a training yard and phase in an innovative training regimen for its linemen. 
 

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.

Adams County Fair Returns August 1-5, 2018

The childhood spirit is one of nearly unbreakable confidence, unflinching resilience and endless tenacity. When toddlers get knocked down, they get back up, dust the dirt off and are ready to go another round (or five). For years, the Adams County Fair has provided an opportunity to channel that spirit into a popular rugrat rodeo activity – Mutton Bustin’. 

Mutton Bustin’ will return with the fair in August, but will introduce an exciting new change from previous event formats. In previous years, children lined up in hopes of participating, but only a select few riders were able to compete on opening night before the event vanished from the Fair. However, due to high demand, the Adams County Fair plans to host Mutton Bustin’ all five days this year, allowing more children to experience the thrills of rodeo life. 

For those unfamiliar with mutton busting, also known as wool riding, the sport gently introduces children to the rough and tumble world of bull riding, but on the backs of more mild ewes. Youthful hopefuls between the ages of 4-7 weighing less than 60 pounds are able to compete. Riders don protective gear, including a vest and helmet with metal face guard, before straddling a sheep in an individual chute and awaiting their opportunity for glory. 

Much like their adult counterparts, who earned reputations on the backs of formidably powerful steers and bulls, wool riders must maintain perfect balance on the ewe in order to earn a score. Ride for six seconds, and a score is awarded. Highest score wins a round. 

While Mutton Bustin’ has certainly been a crowd favorite over the years, the Adams County Fair features several other exciting kid-friendly activities, including bounce houses, ropes courses, zip lines, laser tag and a toddler zone. On Friday, Aug. 3, 9NEWS Kids Day will return, featuring appearances from local mascots, including the Rockies’ Dinger, the Avalanche’s Bernie and Bronco cheerleaders, as well as a United Power booth. 
 

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.