Impact to be Spread Across All Rate Classes

United Power members will see a rate increase effective for usage beginning Jan. 1, 2024. United Power Board members and staff recently reviewed the cooperative’s costs and determined that rates need to be raised an average of 9.5% to help the cooperative maintain a healthy financial profile.

“These decisions are always difficult, and the Board carefully scrutinized spending in all areas across the cooperative before reaching the conclusion that rates need to be increased,” stated Mark A. Gabriel, President and CEO. “Your cooperative has worked hard to keep costs as low as possible for members during the last three years, especially when inflation began to impact the cost of nearly everything we need to maintain normal day-to-day operations. While we knew this effort was only a delay tactic, we really aimed to keep rates stable for members while costs for everything else in their households were rising.”

Average Household to See $10-$15 Increase Monthly

The average residential member will see increases in both the demand charge and in the energy charge, while the fixed charge will remain the same. The demand charge will increase from $1.50 to $2.50 per kW, while the energy charge will increase from 9.95 cents per kwh to 10.39 cents. 

The average household on the standard residential rate using about 850 kwh per month with a demand of 7 kW will see their bill rise from $114.08 to $124.82, an increase of $10.74. 

Residential time-of-use members will see a similar increase, with an increase in demand from $1.50 to $2.50 per kW. On-peak energy charges will rise from 15.4 cents to 16.07, and off-peak energy charges will increase from 5.25 cents per kwh to 5.5 cents. All other rates will see similar increases. See full menu of rate changes here. 

The cooperative’s rate model forecasts that most households will see a $10-$15 per month increase in their electric bill. However, the structure of United Power’s rates provides members the ability to keep costs lower by controlling demand. Reducing demand is as simple as not using electric appliances at the same time. Additionally, setting timers on dryers and dishwashers so they start after the family goes to sleep moves the demand of that appliance to a lower use period and actively reduces demand costs.

Learn more about demand and how you can reduce the impact of this portion of your bill.. 

Why are rates rising now?

It is important to understand that the cost of wholesale power makes up approximately 75% of a member’s bill. United Power’s current wholesale power supplier is planning a large rate increase in 2024, including a significant change in their rate structure. Once approved, the new rate structure will shift expenses from generation to transmission, which will have a considerable impact on United Power even after our exit. In other words, the cost to deliver power to our members will increase next year — regardless of who is generating and supplying that power. Fortunately, the cooperative will begin purchasing and managing its own wholesale power supply on May 1, 2024, giving us greater control over this portion of our power cost.  

United Power staff has kept a watchful eye on spending, particularly over the past three years, but our operation is challenged by rising costs just like most households and businesses. Unavoidable increases in property taxes and insurance premiums are impacting the cooperative. Add to this the rising cost of construction materials and critical components like transformers and wire, and it has been a challenge to balance our budgets. Even the costs for attracting and retaining talented employees continues to climb in both wages and benefits. 

How Can Your Cooperative Support You?

United Power has numerous resources to help our members manage their energy usage. Weatherization information to make your home envelope tighter, energy audits to provide tips on energy efficiency measures, rebates to support purchasing energy efficient appliances, and information on lifestyle changes that can help reduce costs are all ways we put the power to control costs in our members’ hands. 

If you need help managing your electric costs, please feel free to contact us for assistance. Members may reach United Power by phone at 303-637-1300, via email, or by chat at www.unitedpower.com during normal business hours.