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

UNITED POWER CUSTOMERGrace 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.”

UNITED POWER CUSTOMER STEPHEN WHITESIDEGrace 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.

UNITED POWER TESLA BATTERY STORAGEGrace 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
Careful with Space Heaters this Winter
/sites/default/files/styles/news_card_553x430_/public/news/Dec2019_NL_Heater.jpg?itok=DUXMvcho
Wednesday | December 18, 2019
Card Teaser
Although space heaters are safe to use indoors because they don’t require combustion, they still pose burn and fire hazards and should be used with caution.

When used safely and properly, portable space heaters provide a nice relief from the frigid chills of winter temperatures, which can often invade poorly insulated or ventilated rooms in older homes. Although space heaters are safe to use indoors because they don’t require combustion, they still pose burn and fire hazards and should be used with caution. 

Before operating, review the manufacturer’s instructions, including warning labels. Space heaters may seem like simple, easy to use electronics, but each brand and version has its own unique quirks and features. It’s better to be safe than sorry. After reviewing the instructions, inspect the space heater for cracks or broken plugs. 

Next, be sure to place the heater in a safe location. They should be located at least three feet away from anything that can burn, such as clothing and other fabrics, papers, rugs, etc. Do not place space heaters on furniture, such as chairs or tables. Place heaters on a firm, flat location on the ground away from heavily trafficked areas. 

Space heaters place a heavy load on an outlet. For this reason, do not plug any other electrical devices into the same outlet. Extension cords or power strips could also overheat and result in a fire, so plug the heater directly into the wall outlet. 

Most importantly, never leave space heaters unattended. Turn it off before you leave a room or go to sleep, and don’t let animals or children play too close to the heater. When you’re done using the space heater, always unplug it and store it safely. 

Space Heater Sticker Shock

Winter weather has arrived just in time to greet us for the holidays, and that means the cold temperatures that accompany it have also arrived. Heating is our biggest energy consumer in the winter, and when you are able to do it efficiently, you’ll notice savings on your bill. 

Unfortunately, try as we might, some rooms in our homes just don’t seem to stay as warm as others, whether that’s a room away from the furnace in an older home or a large open room that just needs a little extra warmth in the winter. 

A nice, cozy solution for providing some additional warmth in these rooms can be to use a portable space heater. However, the cost of using one of these heaters can add up quickly over the course of a few days if you’re not careful.

Space heaters are big consumers of electricity, most commonly sold as either 750- or 1500-watt models at retailers like Home Depot or Lowe’s. 

Using your space heater for as little as two hours per day over the course of a month can end up costing you nearly $10 extra on your monthly energy bill. The more hours your space heater is operating, the faster those extra charges add up.

Before you consider space heaters to solve your heating issues, try addressing some of these alternatives. 

  • Search and seal. Cool air can find small cracks to get through. Sealing and caulking windows, doors and floors helps keep rooms free of cold air.
  • Insulate. Upgrade your insulation or add to your existing insulation to trap more warm air in your home. 
  • Install storm windows. These provide an added layer of insulation, which helps retain more heat.

SpaceHeater_Comparison_0.jpg

 

The deadline for nominations by petition is Friday, February 14, 2020 by 4:00 p.m.

United for the Cure

Monday | December 16, 2019
This October, United Power joined the ongoing battle to find a cure through an employee-led effort to support colleagues, raise funds and create awareness.

How to Use New Payment Kiosks

Tuesday | December 10, 2019
United Power has placed payment kiosks at two office locations this year.
The United Power board of directors proposed a modest increase in residential rates at their November 8th regulatory meeting.

Decking the Halls Safely

Thursday | November 14, 2019
The holiday season is quickly approaching, and with it the time to put up festive lights, both indoors and outdoors, to enjoy along with the holiday season.

Title
United Power Files with PUC for Tri-State Exit Price
/sites/default/files/styles/news_card_553x430_/public/Touchstone_Energy_PowerLines_143.jpg?itok=y3K785_Y
Wednesday | November 6, 2019
Card Teaser
Cooperative Seeks More Renewable Energy, Lower Costs

United Power, a member-owned electric cooperative serving Colorado’s northern front range, has been investigating its power supply options with Tri-State Generation & Transmission over the last several years, as is the fiduciary responsibility to its member-owners. As part of its investigation, United Power filed a request for the Colorado Public Utilities Commission (PUC) to exercise its authority to establish a just, reasonable, and nondiscriminatory exit charge from Tri-State Generation & Transmission. Tri-State is a cooperative generation and transmission association headquartered in Westminster, Colorado which provides wholesale power to 40 utilities across four states, including United Power.

“United Power members deserve clean, affordable energy and we have an obligation as a cooperative to look out for the financial interests of our member-owners. We have been working for the last few years on solutions with Tri-State that would allow the co-op the flexibility to add local resources, or purchase lower cost power from other sources,” said John Parker, Chief Executive Officer for United Power. “Conversations regarding our power agreement with Tri-State have stalled and the cooperative is seeking out all possible alternatives to build in rate reductions and offer more renewable options to our energy mix.”

Power purchase agreements with Tri-State limit the purchase of additional power by United Power to just five percent of total power requirements. United Power, along with several other cooperatives, championed a bylaw change that would allow Tri-State member cooperatives to enter into partial requirement contracts.  These new partial requirement contracts are an essential component of any successful plan to de-carbonize Colorado electricity generation consistent with Colorado state policy objectives by reducing United Power’s reliance on Tri-State’s high-priced, carbon-intensive power mix. Not only that, they would allow the cooperative to better meet demands for local renewable energy projects, and ultimately reduce costs for United Power members. Since the resolution was passed earlier this year, the two parties have been unable to come to agreements on proposed solutions, and recently Tri-State placed a moratorium on all partial power and buy-out conversations until mid-2020.

“By not allowing United Power to move forward in a timely manner to seek additional energy sources, Tri-State is effectively holding this cooperative and our members hostage,” said Parker. “We are seeking partial requirements and/or buy-out solutions that are in the financial interests of the Tri-State cooperative family, and mutually beneficial to the ratepayers we serve. A full disclosure of a fair and just exit package is the information United Power needs to evaluate and ultimately make effective choices for our members.”

Colorado’s Public Utilities Law gives the Commission broad jurisdiction over public utilities like Tri-State, thus United Power has asked for their intervention to obtain a fair exit price and pricing methodology from Tri-State.