2024 Proposed Rates

The average household on the standard residential rate using about 817 kwh per month with a demand 6.9 kW will see their bill rise from $121.14 to $132.96, an increase of $11.82.

More specifically, for the summer months (June-September), the average increase is $13.00 or 9.36% (973 kWh, 7.5 kW monthly). Looking at the non-summer months (October-May), the average increase is $11.23 or 10.01% (738 kWh, 6.6 kW monthly).

Likewise, the average small commercial member will also see about a 9.8% increase in their monthly bill. 
 

CURRENT RATE INCREASE:

The June 1 rate increase will cover the costs of paying for our exit from our restrictive 50-year wholesale power contract. United Power took out a loan of $627 million which includes at least $179 million for prepayment for use of Tri-State’s transmission system. This prepayment will be credited back with interest to United Power on a monthly basis against the co-op’s transmission bills.

Leaving this contract has already allowed United Power to diversify our generation resources, which will give us cleaner power at a more predictable price moving forward. It will also allow us to incorporate more locally produced power into our energy mix. These two elements will be key to helping us 1) remain nimble and 2) control our costs moving forward. We are no longer tethered to costly central station generation sources or the costs of moving that power through an increasingly costly transmission system.

PRIOR RATE INCREASE:

The Jan. 1, 2024 rate increase was the first increase since Jan. 1, 2020. That increase helped to cover the many increasing costs we saw in everyday operating items like vehicles, gas, insurance, taxes, etc. Inflation has risen nearly 21% since the 2020 rate increase which means the cost of nearly everything has risen for the cooperative to operate. 

Here are a few examples of where the co-op has seen significant price increases over the past four years:

• The cost of the most common cables we use to build our system has risen from 48-59% since 2020.
• Small bucket trucks, which represent a key way that we provide service, have risen in price by 35%. The difference in cost is more than $75,000 per unit.
• Transformers, which are essential for us to build out our system to both serve new members and to ensure reliable service for current members, have seen steep increases. Smaller transformers have risen by 78% ($1,747 to $3,113), while the largest transformers have seen an increase of 147% ($35,690 to $88,286).
• The same costs that have risen for members have risen for the cooperative – insurance on our vehicles, on the assets that we own, and for operational concerns. Property taxes we pay for all our facilities, including substations and offices. 
• Employee costs have also risen, including the cost of wages and benefits. United Power is committed to attracting and retaining the most talented and competent employees, so we can provide you the most consistent service possible. We carefully assess how our wages compare to other utility providers, to make sure that we can attract and retain employees we need to provide the service you expect.

We do not currently anticipate another rate increase through the end of 2025. However, the United Power Board, our governing body, reviews rates at least annually and will determine if a change in rates is necessary. Our goal is to manage costs in order to keep rates stable. 

Just to clarify, there was an increase in both the demand and the energy component of your bill with this latest increase. 

In 2018, United Power uncoupled the blended cost of power and began charging separately for demand and energy. Demand correlates to your impact on the electric system, while energy correlates to the amount of power you consume. Uncoupling these costs ensured that members were being charged more accurately for costs they create. Demand is an important tool to assess costs to those who create the biggest draw on our system.

Rate design is a complicated process with the goal of recouping costs in the fairest manner possible. In assessing this latest rate increase, we used cost-of-service information to advise which components of the bill should increase and by how much. The increase in the demand portion was determined to be the most equitable way to assess and collect this revenue.
 

There are two ways a member can keep the cost of power low – either by using less electricity or by reducing demand. Replacing older bulbs with LED bulbs, turning off “vampire” electronics that run 24/7, upgrading your insulation, caulking drafty windows, even replacing appliances with more energy efficient appliances can help you use less electricity each month. To reduce demand, think about running only one appliance at a time. Shift things like doing laundry to bedtime so your washer is the only appliance running in the house.

Find more information about demand and how it affects your bills.

If you want more individualized information, we have an energy solutions team that can help you understand how you are using electricity in your home and help with suggestions to reduce your electric consumption. These services are free to our members.

Schedule an energy audit.
 

United Power has several rates available for residential members.

The member services team can help you understand if a different rate could save you money. Member services can be reached by calling 303-637-1300, by emailing memberservices@unitedpower.com, or via online chat during regular business hours.

United Power is a huge proponent of rooftop solar systems and was honored by the Colorado Solar and Storage Association (COSSA) in 2022 for our track record of integrating solar resources onto the system. More than 10% of United Power members currently have solar, and we are proud of our track record for interconnecting members.  

As a cooperative, equity in our rates is very important, and our rates are structured so that no group of members subsidizes another group of members. While solar systems are valuable on our system and generate power during the day, they do not generate during our full peak use periods which extend into the evening. So, households with solar have a similar impact on demand and ultimately the price United Power pays for wholesale power. The demand component makes certain all members are billed for their impact on the system in an impartial way.

Members with solar who are interested in incorporating battery storage can take advantage of our United Power Battery Pilot Program and build more savings into their valuable investment into solar.
 

United Power offers several solutions for members to manage their electric bills such as Budget Billing, Prepaid, and specialized rates that allow members focused on decreasing their energy usage and restricting their demand to achieve savings. 

We understand that this rate increase will coincide with the 2024 cooling season when bills generally rise due to air conditioning. To assist our members with these higher energy costs, United Power has committed funds to four assistance agencies in our service territory. These agencies are best situated to educate our members about additional assistance programs that can help them offset other costs. 

Additionally, there are both statewide services and local agencies throughout our territory where qualifying members can apply for assistance with their utility bills. United Power’s Round Up Foundation even provides grants to several of these organizations to help fund these programs. More about these resources.
 

Tri-State is currently seeking approval for a large rate increase through the Federal Energy Regulatory Commission (FERC), and we anticipate they will continue to pass on increased costs to their members as they work to decommission coal assets and reconfigure their own power sources. The rate increase proposed by Tri-State will shift expenses from generation to transmission, so it will still impact United Power since we will continue to utilize their transmission system to provide power. Essentially, we expected an increase whether we stayed or left.

However, with our exit, we will no longer be responsible for Tri-State’s growing operational costs. These costs were distributed based on our size, so we paid the largest share of these expenses – from costs for their employees and their board of directors, to the costs for operating each of their facilities and generation resources. This also includes planned loans that Tri-State is currently seeking to assist in their power transition, which we will not be liable for due to the timing of our exit. United Power was responsible for expenses that were growing disproportionately for the value they provided our members; and within Tri-State’s structure, we had a very limited ability to control those decisions.

The exit will provide us with an important tool to keep costs more predictable for our members in the future. Prior to May 1, 2024, wholesale power made up 75 cents of every dollar you spent on electricity. Controlling our power costs post-exit is the key to why we are exiting. Our goal is to provide reliable power at predictable costs in the future with this move. Exiting now was critical to avoid higher increases in the future. 

As a not-for-profit cooperative, we do not offer special discounts to any group of members.

In a cooperative, all members are treated equally, and since we do not operate to make a profit, there are only the rates published in our tariffs available to members. A member services representative can help you determine if a different rate might save you money. Member services can be reached by calling 303-637-1300, by emailing memberservices@unitedpower.com, or via online chat during regular business hours.

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

• An informal complaint must be in writing and must contain such facts and other information to adequately state the reason(s) for the complaint. An informal complaint regarding the proposed tariff changes will be considered by the United Power Board but does 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 of June 1, 2024. A formal complaint shall be in writing in the form prescribed by United’s Regulations Governing Consumer Complaints and Related Matters which can be found beginning on page 61 of United Power’s Rules and Regulations. Upon request, a copy of said regulations is available from United Power. The policy noted above can be found on United Power’s website under Bylaws, Rates, and Tariffs. 
   

As our regulator, the United Power Board may hold a hearing to determine what changes will be authorized, regardless of complaints. If proper formal complaints and requests for hearing are filed in a timely manner, the Board will 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, must make a written request to United Power at 500 Cooperative Way in Brighton, Colorado 80603 at least 10 days before the proposed effective date.