Our Cooperative Roadmap

Message From United Power's President & CEO

There has been much written in recent months about the dynamics between United Power and Tri-State Generation & Transmission. This has resulted in a significant amount of unneeded expense and tension between the two organizations as well as among at least seven other Tri-State members.

It is important to understand United Power’s position in this conversation:

• We need a strong Tri-State G&T, and we need a Tri-State that recognizes the issues faced across our industry and communities.
• We need a powerful transmission organization like Tri-State to assure our place as a Regional Transmission Organization (RTO) comes to the West, and as additional resources are added to our fuel mix and the grid becomes more critical and complex.
• We need our G&T to be responsive in driving down costs to help our rural economies and to support the growing membership demand for a cleaner, carbon-reduced future. And we need to make sure the exit from coal is rapidly executed while supporting the communities that will suffer in the short term from job and revenue loss.
• We need Tri-State to realize the dynamics of a changing industry mean more of our members want to generate electricity locally, to be untethered from fossil-based resources and released from the paradigm of centralized generation that is decades old. This will require a dramatic new business model, deep cost cutting and jettisoning of inefficient generation even in the face of financial hurdles.

To achieve this goal means a radical re-envisioning of the G&T model, one in which utility members can purchase as much – or as little – power as they need to support their communities; one in which Tri-State operates its grid on the basis of formalized tariffs, such as an Open Access Transmission Tariff (OATT), rather than “Hotel California” rules, where you can get in but never leave; one in which the G&T is the hub for renewable aggregation while not crippling the spokes; and one that is focused on the lowest possible costs and the needs of all its members, big and small.

It is important to be clear that the drive to remove coal from the fuel mix is only tangentially connected to regulation and political whim. It is tied 100% to the low cost of natural gas, coupled with the decreasing costs of renewable energy. This is economics, not politics. This disagreement has resulted in significant legal expenditures, tensions and burdens on staff and has not helped move the needle toward a low-cost, flexible, carbon-reduced environment.

United Power does not necessarily want to terminate its contract with Tri-State, although obtaining a reasonable price for termination would be a starting point for any analysis.

• United Power wants to continue to buy a defined amount of generation (capacity and energy) from Tri-State and has offered to do so.
• United Power wants to be an OATT customer and has offered to make this transition.
• United Power wants to buy additional energy from Tri-State at competitive prices when markets come to the West in the next 24 months.
• United Power wants to be able to buy as much energy generated in its service territory as its members want to provide. Our current Tri-State contract limits us to purchasing no more than 5% of our total power from local renewable resources.

It is illogical in a world that is moving to carbon-free resources that our members are not permitted to build and offer such resources. United Power intends to continue to be a leader in storage technology, which helps Tri-State avoid peaks and high demand, allows Tri-State to reduce its carbon footprint and smooths our transmission congestion.

In sum, United Power wants a strong, responsive and low-cost partner in Tri-State and the freedom to support our members with low-cost, clean and reliable power. Tri-State should be leading the change to a new G&T structure to address the energy needs of the future and help its member cooperatives better serve the individuals and families on their lines.

Please feel free to reach out to me if you have any questions or comments.

Brighton, CO – United Power is now a member of the GridWise Alliance, a national organization which helps foster relationships among a diverse group of industry stakeholders and advocates for public policy changes that benefit grid modernization. The group’s executive committee unanimously approved the cooperative’s membership with the organization in July.

Grid modernization is a moving target that evolves over time as new technology is developed and changes the way energy is produced and managed and how consumers use energy. It typically refers to the system of interconnected devices on a grid that improve reliability and efficiency while ensuring safety. The GridWise Alliance is a collaborate effort among members to develop industry best practices used to direct public policy supporting grid modernization by leveraging their different experiences and perspectives.

“We are a comparatively small player next to some of the larger utilities involved with the GridWise Alliance,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “But we’re also extremely progressive. These types of organizations help us accomplish our goals and what we’re trying to achieve for our members.”

As a member, United Power will be able to contribute its unique perspective on the industry as a fast-growing cooperative serving members in suburban and rural communities northeast of Denver. In June, the Brighton-based co-op became just the 31st electric cooperative nationwide to surpass 100,000 meters and is on past to add several thousand more before the end of the year. The unprecedented growth and progressive reputation of the cooperative have earned it a seat at the table helping direct local and national policy conversations.

“United Power stands out from its cooperative peers for its commitment to grid modernization and deployment of emerging technologies,” said President and Chief Executive Officer Mark A. Gabriel. “As a member of the GridWise Alliance, we have a platform to advocate for policies beneficial to both the cooperative and its members.”

United Power joins Rappahannock as the only other electric cooperative member of the GridWise Alliance. Other prominent members include Con Edison, Dominion Energy and Duke Energy. Non-utility members also include IBM, Intel and General Electric. For more information about the GridWise Alliance, go to www.gridwise.org.

About GridWise Alliance:

The GridWise Alliance (GWA) represents the broad and diverse stakeholders that design, build, and operate the electric grid. Since 2003, the GridWise Alliance has been at the forefront of educating key industry stakeholders on the critical need to modernize our nation’s electricity system. For more information about the GridWise Alliance, visit: www.gridwise.org.

About United Power:

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 cooperatives in the nation, and in June 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. For more information about the cooperative, visit www.unitedpower.com or follow them on social media Facebook, Twitter, LinkedIn, YouTube and Instagram.

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