I have spent much of my 30+ year career in the utility industry. Through the years, people have often asked me what the “best” business model is to provide electricity. There are basically three choices: investor-owned utilities, municipal utilities, and cooperatives like United Power.
I try to reflect on the various pluses and minuses of each business model when answering the question, but always come back to the same conclusion — cooperatives are the closest to their member-owners, focus clearly on the communities being served, and can make changes quickly as technology transforms the energy enterprise.
Commitment to our member-owners is deeply embedded in the cooperative mindset. Our employees work diligently each day to meet the needs of United Power members, while also anticipating future needs. This is why we have been able to handle the tremendous growth in our service territory across all the sectors we are proud to serve: residential, small commercial, and large commercial/industrial. Our attitude and culture is to meet needs when and where they arise, based on the members’ time frame.
Members have an active voice in the utility’s future direction through the annual Director Election. The dedicated women and men on United Power’s Board of Directors spend many hours alongside management preparing for what is to come. This is particularly important with the rapidly changing environment we find ourselves in today.
The Board had the foresight to pilot the largest battery storage facility in the West in 2018. It provided understanding and experience in operating battery storage systems, and paved the way for the cooperative to add another 115 megawatts of battery storage to our system this spring and summer. This battery deployment ensures reliability and allows us to manage the system locally. We will be one of the first utilities in the nation to energize utility-scale batteries at our substations. Moving quickly and taking advantage of innovative technologies is a hallmark of the cooperative world, and certainly at United Power.
Our theme for this year — United Power’s 85th anniversary — is Here for Good. This captures our belief in building a reliable and resilient distribution system and our enduring presence in the communities we serve. United Power fosters local relationships and partners on economic development to support community growth. The cooperative also partners with members who want to give back to those less fortunate through Operation Round Up. More than 25,000 of you participate in the program, which has distributed more than $3 million since 1995. This is why the cooperative business model is so strong — the proximity to the people we serve as “members” and not just “customers.”
As a member, you are also an owner with a vested economic interest in United Power. A part of every monthly statement is an investment in your utility — a key difference in the three business models. Every year, the Board of Directors evaluates our financial condition and determines if we can return margins to members. In the last five years alone, we have returned more than $25 million to members. This only happens in the cooperative world (unless you own stock in an investor-owned utility, of course).
Electric cooperatives are based on seven principles: open and voluntary membership; democratic member control; members economic participation; autonomy and independence; education, training, and information; cooperation among cooperatives; and concern for community. We take these principle to heart in everything we do at United Power.
My third anniversary at the helm of United Power is March 15. I am thankful every day to live and work in a community powered by an electric cooperative, and to work with the amazing women and men of this utility.
As always, please feel free to reach out with your questions, comments, or concerns. I enjoy hearing from our members and appreciate your continued support.