United Power Seeks Resolution on Behalf of Cooperative Membership
Brighton, CO – United Power has sent official notice to the Town of Frederick that they have breached their agreement with the cooperative, and have violated Colorado State Law by building into United Power’s service territory. The cooperative is seeking a resolution within 15 days, or it will seek further action against the town.
“We originally attempted to make a good faith effort to resolve this illegal action by the Town of Frederick, but they have refused to address our concerns,” said Darryl Schriver, United Power CEO. “By building in United Power’s territory the Town violated not only state law, Frederick violated a prior agreement we have with them to supply wholesale power to the Town; we have no alternative but to seek an appropriate settlement on behalf of the entire cooperative membership.”
United Power and the Town of Frederick have a Wholesale Power Agreement, in effect from January 1, 2014 through December 31, 2021, allowing the cooperative to provide power to the municipal utility serving approximately 2,000 customers. In the agreement the Town of Frederick promised to respect and honor United Power’s property interest, and that all facilities and customers outside of the Town’s “old town” boundaries are always United Power members. The fact that the Town of Frederick built in United Power’s territory to provide service to a facility located within the cooperative’s boundaries is a clear breach of the contract. Additionally, the Town of Frederick has violated a Colorado State Statute that defines the terms of any exchange of territory between municipal utilities and cooperatives. The law was designed to make sure that cooperative members are fairly compensated for any loss of membership and revenue when there is an agreement to relinquish territory.
“It is important to note that this illegal action affects every member of our cooperative—individuals and companies who have a stake in this operation,” stated Schriver. “As a cooperative we are owned by our members, and this action is a threat to the interests of every home and business that receives power from the cooperative.”