There is never a good time to raise rates, but there is always a good reason. Raising rates ensures the financial stability of the utility, keeps borrowing costs low, and allows for continued investment in facilities. Sometimes there is a great reason to raise rates. For United Power, that great reason is freedom to do the right thing for our members and a restoration of local control.

More than 85 years ago, United Power’s founding board members decided electrification was in the best interest of their communities. Their goal required bold thinking and a bit of moxie. It took them two years to bring their idea of electrification to life but resulted in the lights going on for 110 homes and businesses in 1940. It introduced a vision for the future that is still being expanded today. The cooperative is now more than 100 times larger – far larger than those original founders could have ever imagined. 

Two years ago, your intrepid Board of Directors began the initial steps to take our cooperative back, advocating for a new direction untethered to an organization that was not operating in our members’ best interests. The Board’s belief is bringing a new vision of the future, and we are expanding on that every day. 

Operating as an independent entity allows United Power to manage its own destiny and focus on locally controlled generation and assets, while protecting members from costs that do not bring them value. Exiting our power contract prevents the cooperative from carrying a disproportionate burden of the supplier’s costs and investments and subsidizing others. Additionally, we want to incentivize generation and storage within our communities and increase reliability. Local generation contributes tax revenue that benefits our communities. Our new power supply will also immediately reduce our carbon intensity, helping us meet regulatory mandates. 

The cost of this freedom is $627 million, broken down into an exit fee of roughly $450 million and a 40-year prepayment of approximately $180 million for the use of transmission facilities. This prepayment is a loan from United Power that will earn interest to the tune of more than $250 million, and it is for service that we would have needed to buy anyway. Most importantly, the cooperative will be free from debts and obligations over which we have no management or control. 

The key question, of course, is what this exit will do to bills. There will be a small rate increase to pay for our freedom. Raising rates is never pleasant, and we understand this will be challenging for some. We are working on programs to minimize the impact, and we are committed to rate stabilization and potential answers for lowering them as we pay off our exit fees. 

This resolution is really the end of the beginning for United Power’s exciting and bold vision for the future. This was outlined three years ago in Our Cooperative Roadmap, which envisioned a new set of power supplies, the move into power markets, increased levels of energy storage, and continuing our industry-leading innovation. 

Innovation is not new at United Power. We were one of the first to have community solar, generate power from methane waste gas, and pioneer battery storage. Further, our rates and programs support members who add solar and storage, and electric vehicles are revolutionizing our backyard with more than 6,000 in our territory. 

United Power received a grant to combine floating solar with storage in Fort Lupton to produce low-cost power and reduce water loss through evaporation. Golden Aluminum, one of the co-op’s largest industrial members, received $22.3 million to electrify their processes. And, we have been selected to apply for New ERA grant funding. If the application is successful, those funds will help stabilize and lower the cost of lower carbon resources. 

Being an independent entity means we get to pick the right generating resources for our members, and help electrification efforts without constraints or paying for things that do not benefit the co-op. 

There is a cost to our freedom, but operating independently is priceless. Bold thinking and a bit of moxie are making this happen. I am proud of the women and men of United Power. We are, and will remain, Here for Good.
 

NOTICE OF CHANGE IN THE RATES AND TARIFFS OF UNITED POWER, INC.

DATE OF NOTICE: April 26, 2024

You are hereby notified that UNITED POWER, INC. (United Power) proposes to make changes to several of its rate tariff schedules to become effective for energy usage on or after June 1, 2024. An increase is necessary for all rate classes to fund the exit from United Power’s Wholesale Supplier. There will be a 5.7% increase to the Large Commercial Coincidental Peak Primary Demand (CPP1) and a 6.1% increase to the Large Commercial Coincidental Peak Secondary Demand (CPS1). There will be an 8.6% increase to the Industrial Service Substation or Transmission Service (ITD1), a 9.2% increase to the Industrial Service Substation or Transmission Service (ITD3), and a 9.6% increase to Industrial Service Substation/Transmission Service (ITD4) rates. The Residential Time of Use (RTD1), Residential Smart Choice (RD1), Residential TOU Demand Service (RDP1), Large Commercial Secondary Demand Service (ISD1), and Large Industrial Primary Demand Service (IPD1) rates will have a 9.7% increase. The increase to the Residential (R1), Small Commercial (C1), and Small Commercial Time of Use (CTD1) rates will be 9.8%. The Industrial Service Substation or Transmission Service (ITD2) rate will have an increase of 9.9%. The increase to the Irrigation (IRR2) rate will be 10%. The Shared Lighting Service rate will have an increase of 11.3% and the Non-Metered Lighting Service rate will have an increase of 11.5%. The Small Industrial Primary Service (SIP1) rate increase will be 14%. The Renewable Resource Green Power Optional Rider Tariff, Sheet 9.3, will reflect updated program requirements and rates, effective Aug. 1, 2024, for a new, 100% Offset option on a per kWh basis and 100-kWh blocks. 

In addition to rate tariff changes, there are minor modifications to update and reflect current business practices in the Rules and Regulations. These updates are to become effective on or after June 1, 2024. The identified areas needing revisions or updating include: (1) Service Connection and Line Extension Fee Schedule and (2) Current Business Practices for estimated billings. 

The present and proposed tariff provisions are available for examination at the Coal Creek branch office, located at 5 Gross Dam Road, Golden, CO; the headquarters office located at 500 Cooperative Way, Brighton, CO; and the Carbon Valley Service Center office at 9586 E. I-25 Frontage Road, Longmont, CO.

Anyone who desires to comment about the proposed changes shall file either an informal complaint or a formal complaint with United Power at 500 Cooperative Way, Brighton, CO 80603 at least 10 days before the proposed effective date. 

An informal complaint shall be in writing and shall contain such facts and other information to adequately state the reason(s) for the complaint. An informal complaint regarding the proposed tariff changes shall be considered by United Power, but will not require that a hearing be held.

Anyone who desires a hearing must file a specific and formal complaint to the proposed changes and a request for hearing at least 10 days before the proposed effective date. A formal complaint shall be in writing in the form prescribed by United Power’s Regulations Governing Consumer Complaints and Related Matters. Upon request, a copy of said regulations is available from United Power.

United Power may hold a hearing to determine what changes will be authorized, regardless of complaints. If proper formal complaints and request for hearings are timely filed, the United Power Board of Directors shall schedule a hearing. The changes ultimately authorized may or may not be the same as those proposed and may include changes different than those tariffs proposed or currently in effect. Anyone who desires to receive notice of hearings, if any, shall make a written request therefor to United Power, at the above address, at least 10 days before the proposed effective date.

UNITED POWER, INC.

By: Mark A. Gabriel, President and Chief Executive Officer
 

Brighton, CO –- United Power President and CEO Mark A. Gabriel was joined by the cooperative’s board of directors for the historic signing of a funding agreement as members were welcomed to the cooperative’s 85th Annual Meeting on April 17. The funding agreement, scheduled to close later this month, will provide the cooperative with $627 million toward its exit fee for its current wholesale power contract, with at least $179 million of that amount for prepayment for use of Tri-State Generation and Transmission’s transmission system. The prepayment amount will be credited back monthly with interest against United Power’s transmission bills.     

“This year’s annual meeting marked a key celebration for our cooperative,” stated Gabriel. “And it is especially meaningful to know we have the support of investors as we leave our restrictive wholesale power contract and create a new energy portfolio that better meets the needs of our members. Remaining nimble and responsive to the needs of our membership and the energy market will help to create a more predictable power supply and more stable costs into the future.”

United Power filed its intent to leave its wholesale power supplier two years ago, starting the countdown clock on the required notice period to terminate the contract. The cooperative executed a withdrawal agreement on April 11, and will exit the wholesale power contract on May 1. The decision to leave the contract was driven by a desire to exercise control over the cooperative’s wholesale power mix, to better leverage local generation opportunities, and to cut additional costs that were disproportionately allocated to United Power’s members.

“United Power had very little control over our power supplier, even though we were their largest member,” stated Beth Martin, United Power Board Chair. “The decisions they made about power supply, financing, even day-to-day spending did not align with what we believe our membership needs. Today’s agreement ensures that we can be better stewards of the investment our members have made in the cooperative. Today we are taking back our cooperative.”

The historic agreement was signed by United Power as the annual meeting doors opened and the cooperative celebrated its 85th anniversary with more than 500 members and guests in attendance. The annual event provides members with updates about the accomplishments of the past year, as well as a report on the financial health of the cooperative. Martin and Gabriel shared a video presentation highlighting the cooperative’s significant achievements over the previous year. Highlights included reporting on the many new power contracts United Power has in place to provide a mix of local generation and new renewable resources. The power mix will be supplemented by innovative energy projects, such as localized utility-scale battery storage, which will mitigate expensive energy purchases during peak power windows. These projects were the result of long-term planning laid out in United Power’s Our Cooperative Roadmap. 

“Our vision of generating power close to where it is consumed – known as hyper localization – is one of the key strategies we are using in developing our power supply,” Gabriel said. “Why not use power generated next door or in your neighborhood, rather than transporting it hundreds of miles from centralized generation plants? It is an efficient, reliable, and cost-effective power delivery system.”

The cooperative also continued its excellent record in system reliability and resiliency in 2023. United Power’s outage duration and response rates rank among the best when measured against electric utilities nationwide, including other cooperatives and investor-owned utilities. 

“Our excellent service record can be tied to several important factors,” Gabriel said. “Our crews’ focus on maintenance of existing infrastructure, coupled with identification and targeting of aging or damaged equipment before it causes an outage, is key to keeping the lights on.”

The presentation also highlighted the expansion of United Power’s electric vehicle programs and rebates and the launch of its all-new battery storage pilot program; celebrated the success of its online member chat feature, with its intuitive navigation connecting members to the information they need quickly and efficiently; and acknowledged the cooperative’s first Sustainability Report, which highlights key operational areas, provides performance metrics, and recaps several important cooperative focus areas.

“There are a lot of exciting developments on the horizon, and we are looking forward to a new energy future,” Martin said. “But it’s important to know that we are still concentrating on the core business of being a utility.”

Keith Alquist, United Power’s Board Treasurer, presented the cooperative’s financials and reported another strong year. The efforts of the co-op over the past year resulted in United Power receiving an ‘A’ rating and stable outlook from Fitch Ratings. Fitch is one of the three nationally recognized credit rating agencies and publishes forward-looking opinions on the relative ability of an entity to meet financial commitments. 

Gabriel concluded the business meeting with a presentation about the innovative steps the cooperative is taking to embrace the industry’s shifting direction. His presentation highlighted the cooperative’s plans to meet the future energy needs of its members, and how the co-op plans to respond to growth on its system. 

“The resolution of the issue with our power supplier is really a new beginning for United Power’s exciting and bold vision for the future,” Gabriel said.

Results of the Director Election were announced at the conclusion of the meeting. Voting in the Director Election was conducted via mail-in and electronic balloting. Nearly 5,500 member ballots were cast in the election, which also introduced new, redrawn district boundaries. Mountain District incumbent Stephen Whiteside retained his seat with 4,819 votes in an uncontested race. North District incumbent Brian A. McCormick and South District incumbent Brad Case also ran unopposed and retained their seats with 4,776 votes and 4,767 votes, respectively. Paige Wagner-Maul received 3,064 votes to win election in the Central District. Incumbent Tim Erickson received 2,197 votes.

Members also voted to approve a bylaw amendment on this year’s ballot to extend director term lengths from three years to four years. 

Videos and information presented at the 2024 Annual Meeting, including the cooperative’s 2023 Annual Report, are available here. 

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 co-ops in the nation, and in June 2021 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. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, X, LinkedIn, YouTube, and Instagram.

###

Agreement adds 150 MW of Solar to the Cooperative’s Power Mix

Brighton, CO—United Power, Inc. (United Power), an electric cooperative serving Colorado’s northern Front Range, and a subsidiary of NextEra Energy Resources, LLC, the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage, announce the signing of a power purchase agreement on April 9. Under the 25-year agreement, United Power will receive output from NextEra Energy Resources’ South Platte Solar project, which is scheduled to begin operations in December 2027. 

“United Power continues to build on our growing portfolio of local, renewable resources under this agreement,” stated Mark A. Gabriel, President and CEO of United Power. “Our strategy is to continue to add resources to our power mix that complement our growth. This new resource is scheduled to come online at the end of 2027 to offset the ongoing territory growth that we expect to see.”

NextEra Energy Resources, the owner and operator of the South Platte Solar project, is building the 150 MW facility in Morgan County. The solar installation is expected to generate more than 350,000 MWh annually. 

“We are thrilled to work with United Power to deliver clean, sustainable energy to its members through our South Platte Solar project,” said Jim Shandalov, VP of Power Origination at NextEra Energy Resources. “Adding 150 MW of solar energy to its supply mix will enable United Power to deliver cost-effective, clean energy in response to its growing power demand.” 

United Power serves more than 110,000 meters and maintains and operates over 6,500 miles of distribution line. The 900-square mile service territory wraps around the north and west borders of the Denver International Airport. It includes the north and northeast metropolitan development corridors along Interstate 25, Interstate 76, State Highway 85, and E-470 and the Golden Gate and Coal Creek canyons, two of Colorado’s most iconic and historic mountain canyons. As a result of its geographic location, United Power’s system is experiencing significant demand and energy growth, averaging approximately 6% annually.

United Power is building an energy portfolio ahead of leaving its current wholesale power supplier on May 1. Since July 2023, the cooperative has announced multiple agreements with providers and generation sources for portfolio assets related to this exit. To learn more about these contracts and United Power’s power supply transition, visit www.unitedpower.com/powersupply. 

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 co-ops in the nation, and in June 2021 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. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, Twitter, LinkedIn, YouTube, and Instagram.

About NextEra Energy Resources
NextEra Energy Resources, LLC (together with its affiliated entities, “NextEra Energy Resources”) is a clean energy leader and is one of the largest wholesale generators of electric power in the U.S., with approximately 30,600 megawatts of total net generating capacity, primarily in 41 states and Canada as of year-end 2023. NextEra Energy Resources is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage. The business operates clean, emissions-free nuclear power generation facilities in New Hampshire and Wisconsin as part of the NextEra Energy nuclear fleet. NextEra Energy Resources offers a wide range of clean energy solutions to help businesses and customers across the country meet their emissions reduction goals. NextEra Energy Resources, LLC is a subsidiary of Juno Beach, Florida-based NextEra Energy, Inc. (NYSE: NEE). For more information, visit: www.NextEraEnergyResources.com.

###
 

United Power Celebrates 85 Years of Service at This Year’s Annual Meeting

United Power has been proudly serving members along the Colorado Front Range for 85 years — setting the standard for innovative excellence in system performance, technological adoption and deployment, member engagement, and commitment to community growth and development. The cooperative has accomplished a lot in the past year as it prepares for the upcoming exit from its wholesale power contract in May, including record reliability and groundbreaking energy partnerships, a renewed dedication to supporting key accounts while maintaining the same level of local involvement, and expanding member programs and self-serve options. Members are invited to attend the 2024 Annual Meeting on April 17 and join the cooperative in celebrating the many ways it is “Here for Good.” 

Voting in the annual Director Election also provides United Power members the unique opportunity to have a voice in the cooperative’s future. Each year, your votes determine who will serve on the Board of Directors. Member participation in the election is crucial to helping the cooperative better serve you. 

Five candidates are running for election to the Board of Directors this year. One seat in the Mountain, North, Central, and South Districts is up for election. The director candidates are Stephen Whiteside (incumbent) in the Mountain District; Brian A. McCormick (incumbent) in the North District; Tim Erickson (incumbent) and Paige Wagner-Maul in the Central District; and Brad Case (incumbent) in the South District. Consider attending the Meet the Candidates event on March 19 to learn more about director candidates or read their candidate statements here. 

A bylaw amendment is included on this year’s ballot regarding director term lengths. Members are being asked if director terms should be changed from three years to four years. 

Balloting opens on March 15. United Power encourages all members to cast their votes in the election. Members may vote electronically through their online account or via mail ballots, sent to all members. Online and mail-in ballots must be received by 11:59 a.m. on April 16, or members can vote in person on April 17 at the meeting. Ballot drop boxes will not be available in cooperative offices this year, however a ballot drop box will be available on-site at the Annual Meeting from noon to 4 p.m. Directors represent all members and are therefore elected on an “at-large” basis. This means members may cast a vote for a director in each district and not just their own. Directors serve in geographic districts to ensure accessibility for members and to provide a representative cross-section of United Power’s member base in the co-op’s governing body.

Attend the Annual Meeting

The 2024 Annual Meeting will be held at Riverdale Regional Park on April 17. Registration opens at 4:30 p.m. and balloting closes at the beginning of the official business meeting at 6:30 p.m. Members may also view a livestream of the meeting posted here.