Increase to Fund Wholesale Power Contract Exit
United Power members will see a rate increase effective for usage beginning on June 1, 2024. The rate increase, which is being spread across all rate classes, is intended to offset the contract termination costs paid by the cooperative to leave its current wholesale power contract on May 1. The average household on the standard residential rate using about 850 kwh per month with a demand of 7 kW will see their bill rise from $124.82 to $136.85, an increase of $12.03.
United Power’s Board and leadership signed a historic funding agreement last month to fund the contract termination payment with the co-op’s wholesale power supplier. The agreement provided $627 million toward its exit fee, with at least $179 million of that amount for prepayment for use of the Tri-State Generation and Transmission’s transmission system. The prepayment amount will be credited back monthly with interest against United Power’s transmission bills.
“We are proud of the work that went into this effort to leave our wholesale power contract,” stated Mark A. Gabriel, President and CEO of United Power. “We envision a future with more locally produced power, more predictability in rates, and the flexibility to meet the changing needs of our members. We will have control over the largest single component of our members’ bills – their wholesale power costs. Leaving this contract gives us the ability to design the future we want.”
What is Changing?
The average residential member will see increases in both the demand charge and in the energy charge, while the fixed charge will remain the same. The demand charge will increase from $2.50 to $4.00 per kW, while the energy charge will increase from 10.39 cents per kwh to 10.57 cents.
Residential time-of-use members will see a similar increase, with an increase in demand from $2.50 to $4.00 per kW. On-peak energy charges will drop from 16.07 cents to 15.25 cents, while off-peak energy charges will increase from 5.5 cents per kwh to 6 cents. All other rates will see similar increases.
See full menu of rate changes.
How to Control Your Demand
The structure of United Power’s rates provides members the ability to keep costs lower by both reducing use and controlling demand. Lowering demand is as simple as not using electric appliances at the same time. Additionally, setting timers on dryers and dishwashers so they start after the family goes to sleep moves the demand of that appliance to a lower use period and actively reduces demand costs.
Learn more about demand and how you can reduce the impact of this portion of your bill.
Members who need assistance managing their monthly bills are encouraged to contact United Power’s member services team about billing options such as Budget Billing, which provides the same predictable payment each month. The team can also provide information about assistance organizations in the co-op’s service territory that can provide counseling and resources for those having trouble paying their bill.
The member services team can be reached during normal business hours by phone at 303-637-1300 or via online chat, located in the bottom right hand corner of the United Power website. Likewise, members may email the United Power team at memberservices@unitedpower.com.