This is the time of year when we have the opportunity to look back as well as forward, and reflect on changes we have made or will make.

At United Power, we continue to evolve to meet the needs of our members, the requirements imposed on the utility, and the increasing demand for electricity from society in general. The cooperative’s growth necessitated many changes and, following Our Cooperative Roadmap, the amazing women and men in the organization have stepped up in a myriad ways.

I generally think of United Power’s evolution in three broad categories — the changes necessary due to our well-founded decision to leave our former power supplier, the changes required to meet state and federal mandates, and those driven by our growth. The majority of the changes are in the latter two categories. We topped 117,000 electric meters in early December and face the state mandate to reduce our greenhouse gas emissions 80% by 2030 (compared to 2005 levels). This is a particular challenge for United Power due to the continued growth in our service territory. 

Our job is to keep the lights on for the communities we serve. To do so, we added a wide range of generating resources to our mix. We hit a record peak of 680 MW this past summer, serving the load with a broad combination of resources including gas, solar, storage, hydro, and wind, which works to offset risk.

Looking back on 2025, we reached several major milestones:

• We opened Mountain Peak Power, a state-of-the-art natural gas plant, which will also be able to burn hydrogen when that becomes commercially available. The plant significantly changed — and lowered — our risk profile, while adding robustness and flexibility. Most importantly, it allows us to hedge natural gas during cold winter and hot summer months instead of relying on market purchases that can spike at those times.
• We signed a contract for 200 MW of solar backed by 200 MW of storage that will come on line in 2027 to replace expiring contracts. United Power already has more than 119 MW of batteries distributed across nine substations being deployed in new and different ways.
• We received finality about the exit fee from our former power supplier when the Federal Energy Regulatory Commission confirmed that United Power would receive an additional $124 million of prepaid transmission credit plus interest back over the next 40 years.

I am equally excited about what lies ahead for United Power in 2026:

• United Power will join the Southwest Power Pool (SPP) on April 1. Utilities that agreed to join the expansion of this regional transmission organization will be able to buy and sell power from the market, which will expand access to more renewables needed to meet Colorado’s clean energy requirements.
• We are implementing a new distributed energy resource management system during the first quarter of the year as we begin the next phase toward becoming a distribution system operator. This change will allow better member interactions and increase the options for load control and management. Through the SPP, we will be able to bundle grid edge resources to sell into the market. 

I would be remiss if I did not address the recent rate increase, which we recognize has been painful for many in our community. We have tried to avoid increases during my five-year tenure. While our cost of energy has gone down, power delivery costs and supply chain expenses along with insurance and property taxes continue to increase. We will be developing a 3-5 year rate strategy that smooths the pattern of future increases, and will survey members during first quarter of this year about the strategy. I urge you to let your voices be heard.

As always, please feel free to reach out with any comments or questions.

Brighton, CO – Fitch Ratings (Fitch), an international credit rating firm, recently reaffirmed United Power’s Issuer Default and 2024 First Mortgage Notes ratings each as ‘A,’ with a stable outlook. Fitch assesses the credit standing of businesses, communicating the credit worthiness and financial strength of the company to lenders.

United Power sought its first rating in March 2024 ahead of financing its departure from a long-term, all-requirements contract with regional power cooperative Tri-State Generation and Transmission. This contract termination provided United Power greater ability to integrate new energy resources and control a variety of expenses necessary to support the management and procurement of its energy portfolio.

“This rating review affirms the strength and solvency United Power has achieved and maintained in its first full year of power supply independence,” said Mark A. Gabriel, President and CEO of United Power. “After a dramatic shift in the business model, maintaining our credit rating reflects United Power's post-exit stability. The cooperative has greater control of its own future, resulting in greater flexibility and control over procuring and providing power for our members.”

Fitch closely evaluated United Power’s past financial performance and weighed the growth opportunities in the cooperative’s territory to reach its rating. United Power’s ‘A’ rating indicates the cooperative is at a low default risk, and its capacity for repayment of financial commitments is considered strong.

This rating further reflects United Power's very strong revenue defensibility assessment and strong operating risk profile.

You can find the press release from Fitch here.