Our Vision in a Rapidly Evolving Energy Industry
The electric utility industry is undergoing a significant refocus on everything from technology to power supply. The delivery model of today will look vastly different in the next decade. Grid technology is improving, energy markets are evolving, and member demands and expectations are changing. United Power must be prepared to adapt quickly and respond proactively to shifts in an ever-changing environment. We recognize the wealth of opportunities - and challenges - that come with these changes.
Our mission as your local electric cooperative is to safely and responsibly deliver reliable electricity and excellent service to our members. To continue delivering on that promise, we must identify the range of potential futures that we need to prepare for, harness our strengths, recognize where growth and investments are required, and develop innovative approaches to proactively address challenges.
It is, therefore, critical United Power ensures all the pieces work together to optimize financial investments, operating efficiencies, and resources. The intent of our cooperative roadmap is to document organizational objectives to create an alignment from the Board of Directors to every employee and, in turn, our members.
Empower and Engage with Members and Communities
Electric cooperatives are owned by the members they serve, which means the members are not just consumers but stakeholders in the cooperative’s success.
Provide Flexible, Affordable, Responsible Power and Services
As the needs of the distribution system have increased, so has the need for United Power to evolve and optimize the supply of power and services to its members.
Continuously Optimize the Electric Distribution System
The optimization of the electric distribution system is paramount as the cooperative confronts increasing demands and complexities driven by rapid electrification, the integration of DERs, and the evolving expectations of members.
Achieve and Maintain Business Agility and Resilience
Business agility and resilience are key investments of United Power’s strategic and operational plan.
Guiding Principles
The following guiding principles were used to develop this roadmap. They are the lenses through which United Power evaluates options, particularly when there are trade-offs.
Recent Roadmap Posts
United Power Hosts Member Forum to Discuss Power Supply
Brighton, Colo. - The Federal Energy Regulatory Commission (FERC) this week issued four initial decisions as part of the rate settlement proceedings between United Power, an electric cooperative headquartered in Brighton, Colo., and its wholesale power supplier Tri-State Generation and Transmission Association, Inc. (Tri-State).
On May 26, FERC Administrative Law Judge Scott Hempling handed down decisions in the cooperative’s favor on three of four issues and ordered Tri-State to give United Power significant refunds concerning energy storage resources (i.e., battery storage).
As one of the settling parties, United Power agreed to the rate settlement at FERC after four key issues were reserved and set for hearing this spring: transmission and delivery system cost unbundling, direct assignment of non-networked delivery facilities (cost causation), energy storage resources, and the discriminatory nature of Tri-State’s Board Policy 119 (BP 119) regarding community solar programs.
“These rulings are significant as they will provide long term benefits to all Tri-State cooperative and their members, in identifying and controlling system costs and assuring the costs are allocated to those who benefit,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “The decision will also impact Tri-State’s claims in the contract termination payment methodology currently awaiting FERC decision, and guide the future work of Tri-State’s rate design committee as the ruling dictates rate structure, ultimately mandating more transparency to all Tri-State members.”
Under the rulings in favor of United Power, FERC determined that Tri-State must unbundle its rates into generation, transmission, and each of the six ancillary services, assuring that the costs of each element are properly identified and disclosed. The FERC judge also determined that Tri-State’s 2023 come-back filing must explain the integration status of each element using appropriate accounting and engineering data, allocating the associated costs accordingly so that facilities used to deliver electric power are properly identified and the costs allocated to those who use them known as “cost causation.” Further, it was found that Tri-State’s special policy for certain community solar programs (BP 119) is unduly discriminatory. This results from a cost-benefit ratio that varies widely depending on a member’s size. Judge Hempling characterized this mismatch of costs and benefits under BP 119 as “textbook undue discrimination.”
A split decision was issued regarding energy storage resources. It was found that Tri-State improperly charged United Power and must provide refunds from September 2019 forward. Judge Hempling specifically ruled that Tri-State cannot use board policies to manipulate the contract and filed rate terms. He also ruled that Tri-State’s inconsistent treatment of energy storage resources is unduly discriminatory, but resolution of that issue was outside the scope of the proceeding.
“The reserved issues before FERC are ahead of the rate settlement case being heard in Washington, D.C., and final rulings on these issues bring United Power closer to our contract termination payment determination,” said Gabriel. “We are pleased with the fair outcomes of these rulings by FERC and look forward to the day when United Power has more control of the power supply mix serving our members.”
United Power filed a non-conditional Notice of Intent to Withdraw from Tri-State, effective May 1, 2024, and simultaneously issued a request for proposals for up to 600 MW of wholesale electric supply. A ruling from the presiding FERC judge on exit fees for Tri-State members is expected by the end of the summer, with a final decision expected in 2023.
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 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, Twitter, LinkedIn, YouTube and Instagram.
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Brighton, Colo. — United Power, a member-owned, not-for-profit electric cooperative based in Brighton, Colorado, filed its non-conditional Notice of Intent to Withdraw from Tri-State Generation and Transmission Association, Inc. (Tri-State) with the Federal Energy Regulatory Commission (FERC) in Washington, D.C., on April 29.
The electric cooperative previously filed a similar notice of intent late last year. That notice, which included a proposed Jan. 1, 2024 departure date, was conditioned upon the assessment of a just and reasonable exit fee by FERC. With this latest action, United Power’s Board of Directors reaffirmed its decision to depart from its wholesale power supplier with a non-conditional notice.
“After careful consideration, our Board stands committed to securing more affordable, more flexible, and lower carbon power,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “We expect this will bring economic benefits and lower rates to our communities, along with greater flexibility to generate power closer to home,” he added.
The latest filing moves the cooperative’s previously announced departure date to May 1, 2024. The modification to the exit timing comes after a recent FERC ruling that required departing utilities to provide non-conditional notices. Central to FERC’s decision is that United Power and its power supplier both require certainty regarding actual departure dates and contracting obligations for power supply. The non-conditional notice of United Power’s departure will allow Tri-State to plan for its reduced supply obligation and assess the economic viability of its higher cost coal generation units.
A FERC hearing to determine a just and reasonable exit fee begins May 3 in Washington, D.C. A ruling from the presiding FERC Judge on exit fees for Tri-State’s members is expected by the end of the summer, with a final Commission decision expected in 2023. Contract disputes between United Power and its power supplier have been ongoing as the cooperative seeks a just and equitable exit fee.
United Power is one of several electric cooperatives in the Tri-State system seeking more flexibility, lower cost power, and fewer contract constraints. Two others, Kit Carson Electric Cooperative and Delta-Montrose Electric Association, have already exited, while three other cooperatives have filed to reduce their participation by 50%. Current power rates through Tri-State are 20% above market, and contract requirements permit only 5% locally sourced power. Economic benefit for its members and the ability to generate local power continue to be the primary reasons United Power seeks to leave the Tri-State membership. United Power believes its withdrawal is in the best interest of its members.
Simultaneously, United Power today issued a Request for Proposals (RFP) for wholesale electric power supply to serve a peak load of up to 600 MW and retail sales of approximately 3,000 GWh. Commitments of intent to participate in the RFP are due by May 16, with questions and clarifications due by June 13. Proposals for part one of the process are due by Aug. 8.
The complete RFP and information for interested respondents can be found at www.unitedpower.com/RFP. Questions about the RFP or selection process may be submitted to United_Power_RFP@enervision-inc.com.
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 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, Twitter, LinkedIn, YouTube and Instagram.
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Groundbreaking Pilot to Leverage Energy from Oil and Gas Wells to Generate Dispatchable Power
Denver and Brighton, Colo. – Transitional Energy, a geothermal development company, joined Brighton-based United Power to announce that they have signed a Letter of Intent to develop a dispatchable energy pilot program. The program will focus on geothermal resources from oil and gas operations located in the electric cooperative’s service territory.
United Power provides electric service to multiple oil and gas operations in Colorado’s DJ Oil Basin. Transitional Energy’s program will use geothermal energy to generate dispatchable baseload electric power. The program may be used with both operational and abandoned wells to capture and convert what would otherwise be waste geothermal energy to electricity.
Many oil and gas operators use traditional electric service to power drilling rigs and other well pad equipment. Through this partnership, United Power and Transitional Energy will be able to provide a unique solution that can convert oil and gas operations using traditional electric service to facilities powered by up to 100% geothermal resources. Owner-operators of wells in the United Power service territory would work directly with Transitional Energy to utilize the technology to offset their energy purchases while reducing their greenhouse gas footprint.
Transitional Energy was founded in Colorado and is partially funded by a grant from the Colorado Office of Economic Development and International Trade. Taking advantage of the team’s oil and gas expertise as well as emerging advancements in Organic Rankine Cycle technology for heat recovery, Transitional Energy will tap into the geothermal potential of thousands of wellbores within the DJ Basin. Reuse of existing wells and infrastructure is a capital-efficient way to use the heat beneath our feet. This pilot program compliments the many innovative energy investments United Power has made in renewable energy projects in its territory.
“United Power is excited to work on this innovative pilot project,” stated Dean Hubbuck, United Power’s Chief Energy Resources Officer. “Utilizing clean, economical geothermal energy to provide local power that can be dispatched when needed is a critical component of our growing energy portfolio. Geothermal energy represents a huge untapped renewable resource that can reduce our reliance on power from other traditional sources.”
About Transitional Energy
Transitional Energy is a geothermal development company based in Denver. The company is majority women owned and Native led. With deep expertise in subsurface engineering, facilities engineering and geology, Transitional Energy is passionate about a clean energy future and utilizing existing oil and gas wells and infrastructure to generate geothermal energy. Learn more at www.transitionalenergy.us.
About the 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 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, dedicated to expanding the power supply and procurement options and reforming the traditional generation and transmission business model. 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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