Xcel Energy to provide United Power and its members with excess low-carbon, renewable electricity
Brighton, CO – United Power an electric cooperative serving Colorado’s northern Front Range, and Xcel Energy, one of the nation’s largest investor-owned utilities, entered into a strategic relationship to explore opportunities for maximizing the value of their combined portfolios and advancing the State of Colorado’s progress toward a low-carbon energy footprint. The utilities are entering a power supply arrangement that would provide United Power access to Xcel Energy’s increasingly carbon neutral portfolio to the benefit of Xcel Energy customers and United Power members. The working agreement will allow both utilities to leverage cost savings through power purchases while continuing to invest in new, clean renewable resources.
“This is a win-win for both utilities,” stated Mark A. Gabriel, President and CEO of United Power. “The ability of two large utilities working toward a common goal will benefit everyone. Together we will plan our energy needs, negotiate lower pricing, and assure reliability for our members and customers. This is an important step as we enter the new future of electric procurement and delivery.”
The agreement aims to facilitate a shared strategic vision for electric power delivery. Xcel Energy seeks to leverage its renewable energy resources by making sales to United Power at times when excess energy is available, providing United Power with access to Xcel Energy’s significant portfolio at attractive prices. The two utilities hope to develop a long-term relationship in which both will work in tandem to drive down power costs, understand how best to serve the future load of the cooperative’s members and Xcel Energy’s customers, and work toward the mutual goal of integrating more renewable energy in support of the State of Colorado’s renewable resource goals.
“The electric industry is changing, and United Power is working with Xcel Energy to help lead this revolution,” stated Gabriel. “Meeting federal and state requirements, keeping costs economical, and making certain our load is predicable are planned outcomes of this strategic relationship.”
United Power is preparing for an exit from its current wholesale power contract with another power supplier on May 1, 2024. The electric cooperative has been securing a variety of power generation contracts to continue to supply its members following its exit from the contract.
“Today’s announcement solidifies our close working relationship with United Power, one of the largest and fastest-growing cooperative utilities in Colorado, by supplying increasingly carbon-free energy from Xcel Energy’s generation resources,” said Robert Kenney, President of Xcel Energy-Colorado. “Our strategic relationship will maximize the value of both companies’ combined generation towards achieving our goal of reducing carbon emissions by 80% by 2030, from 2005 levels, and providing 100% carbon-free electricity by 2050.”
United Power serves nearly 110,000 meters and maintains and operates over 6,500 miles of distribution line. The 900-square mile service territory wraps around the north and west borders of the Denver International Airport. It includes the north and northeast metropolitan development corridors along Interstate 25, Interstate 76, State Highway 85, and E-470 and the Golden Gate and Coal Creek canyons, two of Colorado’s most iconic and historic mountain canyons. As a result of its geographic location, United Power’s system is experiencing significant demand and energy growth, averaging approximately 6% annually.
To learn more about United Power’s power supply transition, visit Power Supply.
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 co-ops 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 Co-op 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, X (formerly known as Twitter), LinkedIn, YouTube, and Instagram.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on X, formerly known as Twitter, and Facebook.
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