Our Cooperative Roadmap

Analyzing System Data to Improve Performance & Reliability, Mitigate Risk

As an electric distribution cooperative, delivering high reliability power safely and efficiently to members is United Power’s first priority. You expect your power to be available when you need it and as long as you need it. United Power recognizes its members’ expectations and earlier this year released Our Cooperative Roadmap with strategic areas the cooperative is focusing on for both its future and the benefits of members. One of the key focuses in the Roadmap is system optimization. The cooperative is engaging in several proactive practices to increase system performance, while also bringing innovative technology solutions on board to assist in demand monitoring, outage resolution, and fire mitigation. 

A few years ago, United Power’s operations team shifted its maintenance strategy to focus on areas of the system that were falling short of performance goals. Utilizing a sophisticated network of grid tracking technology, the cooperative is able to identify specific areas that need improvement and plan targeted maintenance projects. Since the new strategy launched, the cooperative’s outage times have been reduced by nearly half. 

The cooperative’s outage restoration and response is also aided by the rapid adoption of innovative smart devices deployed throughout the distribution system. These automated field devices not only aid in the dissemination of tracking data that informs United Power’s maintenance strategy, but also allow the cooperative to restore power remotely in the event of an outage without having to dispatch crews. They fall into a varying spectrum from simple to complex, but work in conjunction to identify, isolate, and, when possible, resolve faults. 

Design and construction teams are regularly reviewing emerging solutions to improve reliability and provide better tracking information. While the most prominent and immediately recognizable elements of the system are poles and power lines, United Power also manages nearly 18,000 streetlights across its service area. More than 3,000 now include LED smart node technology that communicates lighting issues directly to the cooperative. The technology is both energy efficient and cost effective because it provides information crews can use to ensure proper equipment and materials are collected before being dispatched. Smart nodes are now the default for new streetlight installations, and the cooperative works with each community to convert older technology to the new alternative.

A system that functions reliably must also function safely. United Power serves two mountain canyons at a time in Colorado when wildfire risk has spiked. The cooperative published its fire mitigation plan a few years ago and updates it annually to include new elements that are proven to reduce risk and improve safety. Previous updates have included the installation of new technology and updated construction standards; and this year included the addition of new protocols during Red Flag Warnings. These new procotols govern the system’s response when infererence to electric flow is detected and when fire danger is at its highest. While power can be restored once interference is cleared in most cases, United Power requires crews to investigate causes when Red Flag Warnings are issued. Although an outage is never convenient, preventing a wildfire is critical to member and community safety. 

United Power is proud to manage a comprehensive maintenance plan that has produced one of the most reliable systems in the country. As cooperative members, you can rest assured co-op leadership is actively pursing the best resources for a reliable and safe system, and doing so in the most cost-effective manner to control member rates.

United Power Exits its Current Wholesale Contract Effective May 1, 2024

United Power caught the attention of electric distribution cooperatives nationwide in April when it filed its non-conditional Notice of Intent to Withdraw from its wholesale power contract with Tri-State Generation and Transmission (Tri-State). The cooperative entered a long-term contract with the generation cooperative when few viable sources of affordable and reliable power were available. At the time, it provided stability for United Power and assurance that members would continue to receive reliable power. But the industry has entered a transition, and the contract is no longer reflective of the cooperative or its members’ best interests. 

The current contract is too restrictive, capping locally sourced power at just 5% of its total load and preventing United Power from bringing more local generation onto its system, which would lower costs and expand member options. Before making the difficult decision to exit its contract, leadership at the cooperative attempted to negotiate a revised “partial requirements” contract. The revised contract would have continued United Power’s membership relationship with Tri-State while also allowing the cooperative to explore and purchase lower cost, cleaner power options on the market. Unfortunately, negotiations to this end failed. 

“Our first option was to continue a mutually beneficial relationship with our wholesale power supplier, where we would continue sourcing a portion of our power from them,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “It is unfortunate they were unwilling to help us reach this goal. Although we feel the current contract does not represent shifts taking place in the industry, it was not a decision we made lightly. We spent countless hours weighing our options and discussing a course of action that would result in the best outcome for our members and our future.”

United Power also issued a request for proposal (RFP) for new wholesale power suppliers along with its Notice of Intent to Withdraw. Perspective power suppliers will have until early August to submit proposals outlining their ability to meet the cooperative’s energy needs. Proposals from suppliers are expected to meet three criteria: 

• Energy, the critical resource keeping lights on for United Power members.
• Capacity, the ability to provide continuously reliable power even in adverse conditions.
• Resource adequacy, the assurance generation will be adequate to meet demand even on hot summer days during peak hours. 

“We are expecting a healthy response to our RFP,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “We’ll spend about two months evaluating proposals before selecting a handful of potential suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.”

The final step in United Power’s exit is determining an exit fee, which is currently pending with the Federal Energy Regulatory Commission (FERC). Although the fee hasn’t been determined, FERC has issued a number of decisions in the cooperative’s favor over the past few months. In March, FERC economist Greg Golino determined Tri-State’s methodology for calculating the exit fee was “flawed and unreasonable.” The exit fee could be decided as early as this summer. 

“Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available,” said Beth Martin, United Power’s Board Chairman. “We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save.”

In June, United Power hosted a member forum to discuss its upcoming exit. Gabriel and Hubbuck provided detailed background of how United Power got to this point and where the cooperative is heading from here. The forum concluded with a question and answer session from attendees both online and in person. 

Additional information, including a recording of the forum is available on our Power Supply page.