Title
Residential, Irrigation Rates to See Small Increase
/sites/default/files/styles/news_card_553x430_/public/news/Dec2019_NL_Rates.jpg?itok=tr1osQAy
Wednesday | December 4, 2019
Card Teaser
The United Power board of directors proposed a modest increase in residential rates at their November 8th regulatory meeting.
The United Power board of directors proposed a modest increase in residential rates at their November 8th regulatory meeting. The rate increase will vary from 1.5–2% for residential members. Members on the standard residential rate will see a 1.5% rate increase beginning with their January 1st usage, which amounts to an average increase of $1.58 per month. Members on the residential time-of-day rate and irrigation rate will see a 2% increase – an average monthly increase of $3.23 per month.
An additional time-of-day rate was added in response to concerns raised by members utilizing the time-of-day rate. The additional time-of-day rate gives members who utilize specialized equipment and shift their consumption to off-peak periods another rate option. (See Rates Chart attachment below)
“As we move forward with the rate changes, it’s important that we listen to our members, and our newest rate is a response to their concerns,” stated Dean Hubbock, Director of Power Supply and Rates. “The new rates should have a minimal impact on members, and we now have several rates that members can consider when determining the best rate for their lifestyle.”
Last year, United Power instituted a new rate structure that allowed the cooperative to more fairly bill members for not only the power they use, but also for their impact on the electrical system delivering power. The new rate structure charges for energy and demand, breaking apart two costs that had been previously blended together. The new structure even allows members to have more control over the components of their bill that raise their costs. For example, in the residential rate, the demand charge increased by 50¢ per kW, while the energy charge drops from 10.15¢ per kWh to 9.95¢ per kWh.
“We understand that everyone has a different way they use power in their home, and by expanding our rate offerings, members can select a rate that best fits their usage patterns,” stated Hubbock.
In addition to the changes to the residential rates, the board proposed a couple additional changes. Irrigation rates will see a 2% monthly increase for 2020 – an increase of about $1.79 per month. Small and large commercial customers and large industrial primary customers will see an overall 2% monthly decrease in 2020.
“The small reduction for commercial customers was warranted according to our most recent cost-of-service study,” stated Hubbock. “We will be conducting another full study in 2020, and that will help us continue to refine the rates we charge members in different rate classes.”
The new rates will go into effect for usage beginning January 1, 2020, so members will not see the increase on their bills until their February billing. Members can learn more about how to control their demand and lower their overall electric costs by visiting the Understanding Demand page. There are many helpful resources and videos to help you understand how the two components of your power are billed and how to control these costs.
Resources Offer Closer Look at Your Demand
Monday | September 3, 2018
The Power Portal is United Power’s newest resource for members, and offers a detailed look at monthly energy consumption data and overall usage history. This free resource allows members to view monthly, daily and hourly energy use in 15 minute intervals.
Read more >
Responsible Generator Use Saves Lives
Monday | April 2, 2018
The use of portable generators is commonplace during power outages, but you may not know they can potentially create one of the more dangerous situations for the linemen trying to restore power to you and your neighbors.
Read more >
Title
Results of 2017 United Power Director Election
/sites/default/files/styles/news_card_553x430_/public/news/2017_04_27_UPDirectorElectionResults.jpg?itok=JRk6YR4u
Thursday | April 27, 2017
Card Teaser
Races for a seat in all four United Power director districts were decided by a vote of the members at the 2017 Annual Meeting on Apr. 18 at the Adams County Fairgrounds.
Incumbents Retain Seats, New Mountain Director Elected
New Officers Elected at Regular Monthly Board Meeting on April 21st
Races for a seat in all four United Power director districts were decided by a vote of the members at the 2017 Annual Meeting on Apr. 18 at the Adams County Fairgrounds. Incumbent Directors James Vigesaa and Ginny Buczek retained their respective seats. Director David Rose won the race for his seat in the South District. Incoming director Tamra Waltemath won the seat in the Mountain district left vacant by the retirement of director Douglas Pryce.
United Power’s Board of Directors met for their regular monthly board meeting the Friday following the annual election and selected new officers to serve the cooperative for 2017. James Vigesaa was elected President, Susan Petrocco was re-elected as Vice President, Beth Martin was re-elected Secretary-Treasurer and Ursula J. Morgan was elected to serve again as Assistant Secretary-Treasurer.
Title
Reunited & Ready
/sites/default/files/styles/news_card_553x430_/public/news/JulyAug2021_Reunited.jpg?itok=kTUsOe6h
Thursday | July 8, 2021
Card Teaser
After more than a year of altered business practices during COVID-19, United Power has resumed normal activities.
For more than a year, United Power has had to alter business practices so that it could continue serving members safely and effectively. While linemen continued responding to outages and conducting maintenance to improve reliability, other practices had to change to accommodate members and employees throughout the pandemic.
In June, the cooperative was able to resume normal activities as state officials began easing public health requirements for businesses and public spaces.
Brighton Office Reopens
United Power welcomed employees back when its office location in Brighton re-opened to members on June 1. The cooperative preemptively closed its office locations in March 2020 as the pandemic began and employees transitioned to remote work.
To help members continue to access convenient payment centers, several payment kiosks were installed around the cooperative’s service territory, including its office locations in Carbon Valley and Brighton. A kiosk had previously been installed at the Coal Creek office and another was added in Fort Lupton at the Bank of Colorado Operation Center. The four payment kiosks will remain available for members who would like to continue using them.
In Your Community
For the first time in more than a year, in-person community events have returned, and United Power will play a crucial role in helping make many of them a reality. Not only that, but you’ll see the cooperative present at several upcoming events throughout the summer and fall. Be sure to stop by the cooperative’s booths to say hello. Our employees are ready to see our members’ friendly faces.
Employee Vaccination Clinic
Scheduling a vaccination appointment was a difficult task this spring. With employees returning to the office, United Power hosted a free and voluntary clinic for employees — and their families — who were interested in receiving the vaccine but had been unable to schedule an appointment. It’s one more way the cooperative is ensuring its employees can return to work and interact with members safely.
Carbon Valley Open House
All members are invited to United Power’s Carbon Valley Service Center on August 28 to celebrate the co-op surpassing 100,000 meters. The cooperative will also finally have an opportunity to unveil its newest office location to members in attendance during the celebration.
As United Power and the communities it serves continue the transition out of COVID protocols, the cooperative looks forward to seeing its members again.
Safe Ways to Pay Your Bills
United Power reopened its Brighton office to members beginning June 1. For members who have not been vaccinated or are uncomfortable coming into United Power’s office to make payments, the cooperative offers a variety of safe alternatives:
Online/Mobile: A quick and easy way to view your account and make payments from your home or remotely using the United Power app. Online accounts can also be used to report outages.
Auto Pay: A hassle-free way to ensure payments are made on time every month. Sign up using your online account.
Payment Kiosks: United Power has four kiosk locations: Brighton, Carbon Valley, Fort Lupton and Coal Creek. Members only need an account number and form of payment. Cash/credit are applied immediately to your account.
Pay By Phone: Payment can be made 24 hours/day by calling 866-999-4485.
Pay Now: Allows members to make quick, one-time payments without needing a login or password. You’ll just need an account number and form of payment.
Pay As You Go: A new payment method for members allows you to pay for power before you use it.
Title
Rising to the Occasion
/sites/default/files/styles/news_card_553x430_/public/news/SeptOct_NL_Balloon.jpg?itok=BdvzdBLd
Friday | September 27, 2019
Card Teaser
United Power partnered with Touchstone's national balloon program to present to donations to area nonprofits.
The early morning sun shining off the Touchstone Energy hot air balloon provided the perfect backdrop for United Power at the Adams County Fair in early August.
United Power partnered with Touchstone Energy Cooperative’s national balloon program to present two donations to local nonprofits that are doing incredible work in our community:
Food for Hope
There are thousands of children in Adams County who receive little to nothing to eat when they are not at school. Food for Hope seeks to empower and nourish the future of our community by providing nutritious food to children in need.
Foster Source
Provides relevant training, resources and support to foster parents from a trauma-informed approach, giving them the skills and confidence to spark healing in vulnerable children.
Rosie's Moving In
Tuesday | May 1, 2018
Butterfly Pavilion, home to Rosie the tarantula, recently announced its plans to construct a new facility in Broomfield, inside United Power's service territory.
Read more >
Title
Rural Utilities Want Their Own Piece Of Colorado’s Low-Carbon Future. That Could Mean Breaking Up Big Power Providers
/sites/default/files/styles/news_card_553x430_/public/news/RenewableEnergy2.jpg?itok=w3R3pW7T
Friday | December 20, 2019
Article published by Colorado Public Radio Dec. 20, 2019
Grace Hood/CPR News
United Power customer Stephen Whiteside loads a wheelbarrow with chopped wood near his rural home in Coal Creek Canyon Dec. 12, 2019.
When it comes to greening up Colorado’s power supply, seismic shifts aren’t just coming out of the state Capitol.
They’re also shaking out of rural Colorado, places like Coal Creek Canyon where utility customer Stephen Whiteside lives.
Whiteside is a conservative Republican. He’s also pro-renewable energy. It’s not a combination you’d expect, but a recent poll by Pew Research suggests many Republicans favor wind and solar.
But Whiteside doesn’t support renewables by building a big solar array in his backyard. He does it by cheering on his rural electric cooperative, United Power. In November, United Power said it’s considering parting ways with fossil fuel-heavy power provider Tri-State Generation and Transmission in pursuit of cheaper electricity bills and more renewable energy.
“I think that’s fairly recent that renewables may be more cost-effective than other types of energy,” Whiteside said. “To me that makes a lot of sense to pursue that kind of avenue.”
Grace Hood/CPR News
United Power customers Stephen and Sara Whiteside feed their horses near their rural home in Coal Creek Canyon outside Denver.
Right now, Tri-State gets about one-third of its power from renewable energy. Customers like Whiteside want more renewables because they think it will bring cheaper rates. According to a recent estimate by Standard and Poor’s, electricity rates for Whiteside and others under the Tri-State System could be as much as 20 percent above the statewide Colorado average.
Here’s how the model works now: United Power bands together with 42 other rural electricity providers, called electric cooperatives, to buy power from one entity: Tri-State.
“What that model has not done is kept up with the technological changes in the industry,” United Power CEO John Parker said.
Parker thinks it all adds up to growing pressure on the economic model that rural utilities have followed for decades. In the '80s and '90s, power providers like Tri-State invested heavily in coal-fired plants. Now, they’re trying to green up.
United Power is not the first or the last utility looking into leave Tri-State. La Plata Electric Association has filed a complaint with Colorado regulators seeking an exit fee from Tri-State.
Grace Hood/CPR News
John Parker, Chief Executive Officer of United Power, stands in front of the rural electric cooperative's large battery on Dec. 9, 2019. United Power is exploring whether it can procure wind and solar more cheaply by exiting its current contract with power provider Tri-State.
If those utilities part ways, they’ll follow in the footsteps of two other rural utilities: Colorado-based Delta Montrose Electric Association and New Mexico-based Kit Carson Electric Cooperative. Delta Montrose got the OK to leave its generation and transmission association (known as a G&T) with Tri-State in 2019. Kit Carson left in 2016.
“Just as the industry changes, [generation and transmission cooperatives] have to change,” said Lee Boughey, Tri-State senior manager for communications and public affairs.
Generation and Transmission Cooperatives like Tri-State formed in rural America in the middle of the last century. It was historically expensive for rural electricity providers to provide power because they just served a few customers per mile of the electricity line. That’s unlike urban utilities, which have hundreds of customers per mile. G&Ts helped shoulder the burden by providing power to rural utilities, building expensive coal-fired power plants and setting up contracts that lasted decades to help pay off the plants.
Flashforward to 2019, and power customers like Parker have a keen interest to modernize the grid and experiment with battery storage to keep customers like Whiteside happy. United Power owns the largest battery in the state, but it’s locked into a contract with Tri-State that lasts another 30 years. After power supplier Tri-State quoted United Power a $1.2 billion exit fee to leave its 30-year contract, Parker turned to state regulators for help.
“That’s the balance we’re trying to find. If it costs us $1.2 billion to get out, we probably can’t save enough money to make that work,” Parker said.
Boughey said 2019 was a big year for Tri-State. It opened up community solar options to its members and brought 104 megawatts of new wind power online. It announced plans to build a 100 megawatt new solar farm. Its Nucla coal-fired power plant was retired early from service, reducing emissions and making operations more efficient.
Tri-State’s member cooperatives are finalizing new contracts that would allow rural utilities like United Power more flexibility to buy renewables. Currently, they’re capped in their contracts at generating just 5 percent of renewable power locally.
Nate Minor
The Craig Station power plant features three generating units, all of which are fully or partially owned by Tri-State Generation and Transmission Association. Unit 1 will be retired by the end of 2025.
One of the challenges for Tri-State will be to get even more fossil fuel sources off its financial books as it faces regulatory pressure to do so in Colorado and New Mexico. Legislatures in both states passed carbon-reduction goals for utilities this year. Tri-State will be required to participate in expensive planning. However, there are no financial penalties if Tri-State doesn’t meet the goals.
“As we move into 2020 and chart our course for the future I think there should be confidence that we’ll be able to meet the challenges ahead,” Boughey said.
Similar disputes are playing out between rural utilities and their power suppliers across the United States. In Indiana, Tipmont Rural Electric is seeking to part ways from its power supplier over high rates. In Minneapolis, suburban utility Connexus is in the midst of talks with its power provider to get lower rates and more flexibility.
“Today memberships across the country are expecting more from their G&Ts. They’re expecting competitive prices and a greening of the grid,” Connexus CEO Greg Ridderbusch said.
Like United Power, Connexus is locked into a decades-long contact with its power provider. Ridderbusch said in the future it will be important for his utility and others to form more robust partnerships with their power suppliers.
“We need the G&T to lower the constraints on things we’re doing in our own backyard for our members,” Ridderbusch said.
Whiteside said he’s on United Power’s side.
“To have reliable electric service is absolutely critical,” Whiteside said. “If solar power can supplement the other sources that United Power has, it would make sense to do that if it’s available.”
As relationships start to shift across the country between power suppliers and rural utilities, all eyes will be on Colorado. The Public Utilities Commission could rule on the La Plata and United Power cases in 2020.
Editor’s Note: This story was updated to reflect that Tri-State’s members will ultimately decide how to roll out a partial-requirements contract.
Title
Residential, Irrigation Rates to See Small Increase
/sites/default/files/styles/news_card_553x430_/public/news/Dec2019_NL_Rates.jpg?itok=tr1osQAy
Wednesday | December 4, 2019
Card Teaser
The United Power board of directors proposed a modest increase in residential rates at their November 8th regulatory meeting.
The United Power board of directors proposed a modest increase in residential rates at their November 8th regulatory meeting. The rate increase will vary from 1.5–2% for residential members. Members on the standard residential rate will see a 1.5% rate increase beginning with their January 1st usage, which amounts to an average increase of $1.58 per month. Members on the residential time-of-day rate and irrigation rate will see a 2% increase – an average monthly increase of $3.23 per month.
An additional time-of-day rate was added in response to concerns raised by members utilizing the time-of-day rate. The additional time-of-day rate gives members who utilize specialized equipment and shift their consumption to off-peak periods another rate option. (See Rates Chart attachment below)
“As we move forward with the rate changes, it’s important that we listen to our members, and our newest rate is a response to their concerns,” stated Dean Hubbock, Director of Power Supply and Rates. “The new rates should have a minimal impact on members, and we now have several rates that members can consider when determining the best rate for their lifestyle.”
Last year, United Power instituted a new rate structure that allowed the cooperative to more fairly bill members for not only the power they use, but also for their impact on the electrical system delivering power. The new rate structure charges for energy and demand, breaking apart two costs that had been previously blended together. The new structure even allows members to have more control over the components of their bill that raise their costs. For example, in the residential rate, the demand charge increased by 50¢ per kW, while the energy charge drops from 10.15¢ per kWh to 9.95¢ per kWh.
“We understand that everyone has a different way they use power in their home, and by expanding our rate offerings, members can select a rate that best fits their usage patterns,” stated Hubbock.
In addition to the changes to the residential rates, the board proposed a couple additional changes. Irrigation rates will see a 2% monthly increase for 2020 – an increase of about $1.79 per month. Small and large commercial customers and large industrial primary customers will see an overall 2% monthly decrease in 2020.
“The small reduction for commercial customers was warranted according to our most recent cost-of-service study,” stated Hubbock. “We will be conducting another full study in 2020, and that will help us continue to refine the rates we charge members in different rate classes.”
The new rates will go into effect for usage beginning January 1, 2020, so members will not see the increase on their bills until their February billing. Members can learn more about how to control their demand and lower their overall electric costs by visiting the Understanding Demand page. There are many helpful resources and videos to help you understand how the two components of your power are billed and how to control these costs.
Resources Offer Closer Look at Your Demand
Monday | September 3, 2018
The Power Portal is United Power’s newest resource for members, and offers a detailed look at monthly energy consumption data and overall usage history. This free resource allows members to view monthly, daily and hourly energy use in 15 minute intervals.
Read more >
Responsible Generator Use Saves Lives
Monday | April 2, 2018
The use of portable generators is commonplace during power outages, but you may not know they can potentially create one of the more dangerous situations for the linemen trying to restore power to you and your neighbors.
Read more >
Title
Results of 2017 United Power Director Election
/sites/default/files/styles/news_card_553x430_/public/news/2017_04_27_UPDirectorElectionResults.jpg?itok=JRk6YR4u
Thursday | April 27, 2017
Card Teaser
Races for a seat in all four United Power director districts were decided by a vote of the members at the 2017 Annual Meeting on Apr. 18 at the Adams County Fairgrounds.
Incumbents Retain Seats, New Mountain Director Elected
New Officers Elected at Regular Monthly Board Meeting on April 21st
Races for a seat in all four United Power director districts were decided by a vote of the members at the 2017 Annual Meeting on Apr. 18 at the Adams County Fairgrounds. Incumbent Directors James Vigesaa and Ginny Buczek retained their respective seats. Director David Rose won the race for his seat in the South District. Incoming director Tamra Waltemath won the seat in the Mountain district left vacant by the retirement of director Douglas Pryce.
United Power’s Board of Directors met for their regular monthly board meeting the Friday following the annual election and selected new officers to serve the cooperative for 2017. James Vigesaa was elected President, Susan Petrocco was re-elected as Vice President, Beth Martin was re-elected Secretary-Treasurer and Ursula J. Morgan was elected to serve again as Assistant Secretary-Treasurer.
Title
Reunited & Ready
/sites/default/files/styles/news_card_553x430_/public/news/JulyAug2021_Reunited.jpg?itok=kTUsOe6h
Thursday | July 8, 2021
Card Teaser
After more than a year of altered business practices during COVID-19, United Power has resumed normal activities.
For more than a year, United Power has had to alter business practices so that it could continue serving members safely and effectively. While linemen continued responding to outages and conducting maintenance to improve reliability, other practices had to change to accommodate members and employees throughout the pandemic.
In June, the cooperative was able to resume normal activities as state officials began easing public health requirements for businesses and public spaces.
Brighton Office Reopens
United Power welcomed employees back when its office location in Brighton re-opened to members on June 1. The cooperative preemptively closed its office locations in March 2020 as the pandemic began and employees transitioned to remote work.
To help members continue to access convenient payment centers, several payment kiosks were installed around the cooperative’s service territory, including its office locations in Carbon Valley and Brighton. A kiosk had previously been installed at the Coal Creek office and another was added in Fort Lupton at the Bank of Colorado Operation Center. The four payment kiosks will remain available for members who would like to continue using them.
In Your Community
For the first time in more than a year, in-person community events have returned, and United Power will play a crucial role in helping make many of them a reality. Not only that, but you’ll see the cooperative present at several upcoming events throughout the summer and fall. Be sure to stop by the cooperative’s booths to say hello. Our employees are ready to see our members’ friendly faces.
Employee Vaccination Clinic
Scheduling a vaccination appointment was a difficult task this spring. With employees returning to the office, United Power hosted a free and voluntary clinic for employees — and their families — who were interested in receiving the vaccine but had been unable to schedule an appointment. It’s one more way the cooperative is ensuring its employees can return to work and interact with members safely.
Carbon Valley Open House
All members are invited to United Power’s Carbon Valley Service Center on August 28 to celebrate the co-op surpassing 100,000 meters. The cooperative will also finally have an opportunity to unveil its newest office location to members in attendance during the celebration.
As United Power and the communities it serves continue the transition out of COVID protocols, the cooperative looks forward to seeing its members again.
Safe Ways to Pay Your Bills
United Power reopened its Brighton office to members beginning June 1. For members who have not been vaccinated or are uncomfortable coming into United Power’s office to make payments, the cooperative offers a variety of safe alternatives:
Online/Mobile: A quick and easy way to view your account and make payments from your home or remotely using the United Power app. Online accounts can also be used to report outages.
Auto Pay: A hassle-free way to ensure payments are made on time every month. Sign up using your online account.
Payment Kiosks: United Power has four kiosk locations: Brighton, Carbon Valley, Fort Lupton and Coal Creek. Members only need an account number and form of payment. Cash/credit are applied immediately to your account.
Pay By Phone: Payment can be made 24 hours/day by calling 866-999-4485.
Pay Now: Allows members to make quick, one-time payments without needing a login or password. You’ll just need an account number and form of payment.
Pay As You Go: A new payment method for members allows you to pay for power before you use it.
Title
Rising to the Occasion
/sites/default/files/styles/news_card_553x430_/public/news/SeptOct_NL_Balloon.jpg?itok=BdvzdBLd
Friday | September 27, 2019
Card Teaser
United Power partnered with Touchstone's national balloon program to present to donations to area nonprofits.
The early morning sun shining off the Touchstone Energy hot air balloon provided the perfect backdrop for United Power at the Adams County Fair in early August.
United Power partnered with Touchstone Energy Cooperative’s national balloon program to present two donations to local nonprofits that are doing incredible work in our community:
Food for Hope
There are thousands of children in Adams County who receive little to nothing to eat when they are not at school. Food for Hope seeks to empower and nourish the future of our community by providing nutritious food to children in need.
Foster Source
Provides relevant training, resources and support to foster parents from a trauma-informed approach, giving them the skills and confidence to spark healing in vulnerable children.
Rosie's Moving In
Tuesday | May 1, 2018
Butterfly Pavilion, home to Rosie the tarantula, recently announced its plans to construct a new facility in Broomfield, inside United Power's service territory.
Read more >
Title
Rural Utilities Want Their Own Piece Of Colorado’s Low-Carbon Future. That Could Mean Breaking Up Big Power Providers
/sites/default/files/styles/news_card_553x430_/public/news/RenewableEnergy2.jpg?itok=w3R3pW7T
Friday | December 20, 2019
Article published by Colorado Public Radio Dec. 20, 2019
Grace Hood/CPR News
United Power customer Stephen Whiteside loads a wheelbarrow with chopped wood near his rural home in Coal Creek Canyon Dec. 12, 2019.
When it comes to greening up Colorado’s power supply, seismic shifts aren’t just coming out of the state Capitol.
They’re also shaking out of rural Colorado, places like Coal Creek Canyon where utility customer Stephen Whiteside lives.
Whiteside is a conservative Republican. He’s also pro-renewable energy. It’s not a combination you’d expect, but a recent poll by Pew Research suggests many Republicans favor wind and solar.
But Whiteside doesn’t support renewables by building a big solar array in his backyard. He does it by cheering on his rural electric cooperative, United Power. In November, United Power said it’s considering parting ways with fossil fuel-heavy power provider Tri-State Generation and Transmission in pursuit of cheaper electricity bills and more renewable energy.
“I think that’s fairly recent that renewables may be more cost-effective than other types of energy,” Whiteside said. “To me that makes a lot of sense to pursue that kind of avenue.”
Grace Hood/CPR News
United Power customers Stephen and Sara Whiteside feed their horses near their rural home in Coal Creek Canyon outside Denver.
Right now, Tri-State gets about one-third of its power from renewable energy. Customers like Whiteside want more renewables because they think it will bring cheaper rates. According to a recent estimate by Standard and Poor’s, electricity rates for Whiteside and others under the Tri-State System could be as much as 20 percent above the statewide Colorado average.
Here’s how the model works now: United Power bands together with 42 other rural electricity providers, called electric cooperatives, to buy power from one entity: Tri-State.
“What that model has not done is kept up with the technological changes in the industry,” United Power CEO John Parker said.
Parker thinks it all adds up to growing pressure on the economic model that rural utilities have followed for decades. In the '80s and '90s, power providers like Tri-State invested heavily in coal-fired plants. Now, they’re trying to green up.
United Power is not the first or the last utility looking into leave Tri-State. La Plata Electric Association has filed a complaint with Colorado regulators seeking an exit fee from Tri-State.
Grace Hood/CPR News
John Parker, Chief Executive Officer of United Power, stands in front of the rural electric cooperative's large battery on Dec. 9, 2019. United Power is exploring whether it can procure wind and solar more cheaply by exiting its current contract with power provider Tri-State.
If those utilities part ways, they’ll follow in the footsteps of two other rural utilities: Colorado-based Delta Montrose Electric Association and New Mexico-based Kit Carson Electric Cooperative. Delta Montrose got the OK to leave its generation and transmission association (known as a G&T) with Tri-State in 2019. Kit Carson left in 2016.
“Just as the industry changes, [generation and transmission cooperatives] have to change,” said Lee Boughey, Tri-State senior manager for communications and public affairs.
Generation and Transmission Cooperatives like Tri-State formed in rural America in the middle of the last century. It was historically expensive for rural electricity providers to provide power because they just served a few customers per mile of the electricity line. That’s unlike urban utilities, which have hundreds of customers per mile. G&Ts helped shoulder the burden by providing power to rural utilities, building expensive coal-fired power plants and setting up contracts that lasted decades to help pay off the plants.
Flashforward to 2019, and power customers like Parker have a keen interest to modernize the grid and experiment with battery storage to keep customers like Whiteside happy. United Power owns the largest battery in the state, but it’s locked into a contract with Tri-State that lasts another 30 years. After power supplier Tri-State quoted United Power a $1.2 billion exit fee to leave its 30-year contract, Parker turned to state regulators for help.
“That’s the balance we’re trying to find. If it costs us $1.2 billion to get out, we probably can’t save enough money to make that work,” Parker said.
Boughey said 2019 was a big year for Tri-State. It opened up community solar options to its members and brought 104 megawatts of new wind power online. It announced plans to build a 100 megawatt new solar farm. Its Nucla coal-fired power plant was retired early from service, reducing emissions and making operations more efficient.
Tri-State’s member cooperatives are finalizing new contracts that would allow rural utilities like United Power more flexibility to buy renewables. Currently, they’re capped in their contracts at generating just 5 percent of renewable power locally.
Nate Minor
The Craig Station power plant features three generating units, all of which are fully or partially owned by Tri-State Generation and Transmission Association. Unit 1 will be retired by the end of 2025.
One of the challenges for Tri-State will be to get even more fossil fuel sources off its financial books as it faces regulatory pressure to do so in Colorado and New Mexico. Legislatures in both states passed carbon-reduction goals for utilities this year. Tri-State will be required to participate in expensive planning. However, there are no financial penalties if Tri-State doesn’t meet the goals.
“As we move into 2020 and chart our course for the future I think there should be confidence that we’ll be able to meet the challenges ahead,” Boughey said.
Similar disputes are playing out between rural utilities and their power suppliers across the United States. In Indiana, Tipmont Rural Electric is seeking to part ways from its power supplier over high rates. In Minneapolis, suburban utility Connexus is in the midst of talks with its power provider to get lower rates and more flexibility.
“Today memberships across the country are expecting more from their G&Ts. They’re expecting competitive prices and a greening of the grid,” Connexus CEO Greg Ridderbusch said.
Like United Power, Connexus is locked into a decades-long contact with its power provider. Ridderbusch said in the future it will be important for his utility and others to form more robust partnerships with their power suppliers.
“We need the G&T to lower the constraints on things we’re doing in our own backyard for our members,” Ridderbusch said.
Whiteside said he’s on United Power’s side.
“To have reliable electric service is absolutely critical,” Whiteside said. “If solar power can supplement the other sources that United Power has, it would make sense to do that if it’s available.”
As relationships start to shift across the country between power suppliers and rural utilities, all eyes will be on Colorado. The Public Utilities Commission could rule on the La Plata and United Power cases in 2020.
Editor’s Note: This story was updated to reflect that Tri-State’s members will ultimately decide how to roll out a partial-requirements contract.
