United Power had a tremendous year in 2022, from our system’s performance in limiting outages and outage duration to our important decision to withdraw from our wholesale power contract and seek a new power supplier. 

Much is happening behind the scenes as we prepare for the next decade and beyond. The investments we make — strongly supported by your forward-thinking Board of Directors — position United Power for a future with diverse generation and storage technologies to meet the expectations of our members. 

Our dedicated employees are the force behind our successful operations. It takes a team with diverse skill sets and abilities. Our line crews are on call 24/7 to respond to unexpected emergencies and restore power during an outage, and the excellent efforts of our office staff keep the business flowing day-to-day.

Our system relies on dozens of complicated processes that must occur to keep the lights on, and some are not obvious. Supply chain disruption planning, understanding operational challenges through asset management, protecting critical infrastructure across a remote footprint, and understanding and communicating with our members are just a few of these important, yet hidden, processes. 

Electric utilities are one of the few businesses only recognized when they do not perform well. I am proud to say that thanks to our great team, our outage times were half the national average in 2022. Over the past several years, we have made a concerted effort to underground our lines where practical, use new and emerging technologies, and deploy additional sensors while focusing our maintenance efforts and investments on areas needing the most improvements. 

Our Cooperative Roadmap (Roadmap) outlines the key directions for United Power as we boldly move into the future — a future with a shared energy economy, more electrification, and higher demands for reliability and resilience. We are, as previously announced, preparing for a future with a new power supplier and getting ready for a power market to come in 2025. These moves take many months, if not years, of preparation. The team at United Power is working toward these goals. At the same time, we are understanding of the economic challenges our members are facing, and we are working to keep rates low and reliability high while meeting state regulations.

We are also in the process of seeking federal funding to help support our infrastructure, as laid out in the Inflation Reduction Act, in areas such as wildfire mitigation, electric vehicle charging, and sensors. Under the legislation, individual members and businesses may also have opportunities to apply for direct federal funding for efficiency upgrades, such as energy storage projects, heat pumps, insulation, and electrification of industrial processes. 

The upcoming year will be an exciting one as we continue the path outlined in our Roadmap. I am confident we will continue to be the best cooperative in Colorado and one of the best in the nation thanks to our tremendous team and the support from our Board, who are working to keep our communities strong. 

As always, please do not hesitate to reach out to me anytime.

One of the newest buzz phrases in the energy industry is the “shared energy economy.” In this economy, all the resources necessary for keeping the lights on, keeping our homes and businesses running, and keeping society humming are jointly managed for the benefit of all. 

The cooperative business model was founded on this very principle more than 80 years ago, with communities coming together and bringing light where there was darkness. 

The Electric Power Research Institute (EPRI), an independent nonprofit energy research, development, and deployment organization, has a fancy definition of this shared energy economy:

“Technical, business, regulatory, and policy conditions that allow customer-owned resources to supplement utility operations in providing value to consumers while also providing value to the asset owner.”

Today we have advanced technologies that are creating an energy web, linking centralized resources and member-owned resources, such as electric vehicles (EVs), solar panels, and home battery storage in new and exciting ways. The coming of a power market in the next two years will allow United Power — on your behalf — to manage a variety of electric inputs that will help lower bills and make better use of the electricity we buy.

Taking advantage of the shared energy economy is one of the many reasons we are working to find new, more forward-leaning power suppliers, as our current arrangement limits the flexibility we can provide our members and the choices that are available. We have outlined this future in Our Cooperative Roadmap that envisions a day in the not-to-distant future when we are no longer penalized for being efficient, having large scale batteries, or working with our members to serve their needs in a mutually beneficial manner.

There are more than 9,200 members with solar rooftops, 150 with batteries, and many thousands buying EVs in our service territory. Combining those with load management programs for water heating, air conditioning, and on-site generation will allow United Power to bring value and share the economic benefit of those investments.

These changes will help many of our industrial and commercial members meet their Environmental, Social, and Governance (ESG) goals, while also achieving Colorado’s planned reduction in emissions. It is important to recognize how the economics are driving these changes for United Power first and foremost. We can get the dual benefit of meeting goals and lowering costs.

The shared energy economy has been a cornerstone of the cooperative business model, and this continued evolution fits well into United Power’s history as an energy leader on your behalf and recognizes the future opportunities for our communities. 

As always, I welcome your comments and insights, as well opportunities to meet with our members anytime. Please feel free to reach out to me or any member of our executive team with questions or concerns. 

It has been an eventful and exciting late summer and early fall. United Power was able to mitigate the financial impact of record peaks with the help of demand response and load control tools, such as our Smart Rewards thermostat program and our managed electric vehicle charging program, United EV.

At a time of the year when weather can create challenging situations for electric grids, our system held up well. The investments we made in our distribution network on our members’ behalf, combined with our active wildfire mitigation programs, resulted in few operating issues. We run one of the best networks in Colorado – and probably the country – thanks to the great staff and alignment with Our Cooperative Roadmap (Roadmap), which emphasizes a continual optimization of our distribution system.

Another key pillar in our Roadmap is providing flexible, affordable, and sustainable power. United Power is one step closer to obtaining lower cost, cleaner power for our members thanks to a recent ruling from an administrative law judge at the Federal Energy Regulatory Commission (FERC) regarding the cooperative’s exit fee from our current wholesale power supply contract. While this is just part of the process, it is a major step in the right direction.

Our decision to depart from our current supplier is based in economics. United Power members pay over market price for their power and transmission while living with a choke collar that caps our ability to generate local power at 5%. We are penalized for being more efficient and deploying innovative energy solutions, like battery storage. We are even prevented from adding resources within our footprint, meaning our communities do not receive the financial benefit of companies wanting to invest in renewables close to home.

It is important to remember the decision to seek FERC oversight was our power supplier’s alone. United Power did not support the decision for a number of critical reasons, chief among them the loss of local control to set rates, combine cooperative needs, and jointly manage costs. 

In contrast, one of the greatest strengths we have as a cooperative is local control through your elected Board of Directors. This ties to another critical pillar in our Roadmap – empowering and engaging our members and communities. Your Board members come from your towns and understand the values and concerns of each community’s residents. They provide direct oversight of the cooperative and hold the power to establish rates, but they ultimately answer to members as representatives of their communities.

I have recently been honored to present on the topic of changes within the electric industry at local chambers of commerce and regional energy conferences. I would be pleased to address any similar organizations about the future of the industry and anticipated changes to it. If you are involved in a local organization wishing to hear about our initiatives, just send an email and someone will reach out to set up a presentation.

Finally, October was Cybersecurity Awareness Month. United Power remains vigilant to threats our system faces as we strive to achieve and maintain business agility and resiliency through information and operational technology, which is our fourth and final Roadmap pillar.  We cannot let our guard down, given there are those who wish to do harm to the electric grid. 

As always, please feel free to reach out to me with your questions and concerns. It is an honor and privilege to serve you and the great staff at United Power.

The energy transition is upon us and I am proud of the team at United Power for not only being ready but also leading the charge (pun fully intended).

Congress recently passed the Inflation Reduction Act (IRA), which will fundamentally and forever change the energy landscape. It will bring beneficial electrification to all Americans in a way not seen since the cooperative model was born to bring electricity to rural parts of our nation in the 1930s. It is in that spirit that funding for critical infrastructure, expanded support for electric vehicles (EVs), and support for new and advanced generation technologies will be made available to our communities. 

United Power has a proud history of being at the forefront of innovation in the energy industry, thanks to tremendous support from your Board of Directors and visionary leaders in the organization. More than a decade ago, United Power unveiled the first community solar farm and five years ago the cooperative energized the largest (still) long-duration battery storage project in Colorado. It has deployed an Advanced Metering Infrastructure (AMI), created and expanded a strategic EV charging network, and recently launched a simple home charging and load control pilot program for just $19 per month. Information about the charging pilot program can be found on our website at www.unitedpower.com/unitedev. Coupled with the numerous energy efficiency and member-friendly programs, your cooperative is well-positioned for the next wave of development.

Thanks to Our Cooperative Roadmap, United Power is prepared to manage into this new energy frontier. While some cooperatives are scrambling to find projects to tie to the IRA, we are already able to bring immediate benefits to our communities. Whether it is the expansion of our EV charging network, working with school districts to obtain funds for electric buses, or using coated conductors in our mountain district to reduce the potential for wildfires, United Power has plans to help these programs lauch quickly.

Our movement toward becoming a Distribution System Operator (DSO) is key to our continued success. As a DSO, United Power can take advantage of systems we have in place - such as AMI or our Outage Management System (OMS) - to share and control information, reduce the amount of power we need to buy, and better manage our system. As a market comes to the west in the next 24-36 months, we will be able to buy and sell power at lower costs and be part of an expanded footprint that can take advantage of weather and time differences.

United Power is focusing on the future of the cooperative, beginning with the finalization of a new power supplier effective May 2024. I am pleased to report that at least 34 companies are vying for our business, with many imaginative projects that will provide better economics, as well as improved carbon management. Our first priority is reliability, followed by affordability, and coupled with a lower carbon future. This aligns with the needs of our membership.

These are exciting times in the energy space, and your cooperative is ready to step into the forefront in support of our communities. If you would like me, or any member of our senior team, to speak about the cooperative’s future at any local events or meetings, please let us know. We are proud of our efforts and happy to spread the word.

We have a great tradition of being prepared for the future at United Power and I want every member to feel empowered to reach out to me and our staff at any time. I welcome the opportunity to meet you where you are, so do not hesitate to contact me or a member of our senior staff. You can submit a comment for me here.