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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.
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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.