Storage Agreement Will Help Create Flexibility for the Cooperative

Brighton, CO — United Power, Inc. (United Power), an electric cooperative serving Colorado’s northern Front Range, and Whetstone Power, a developer of sustainable energy infrastructure, announce a new partnership for the construction of a battery energy storage system. 

The battery energy storage system will be located in United Power’s service territory, giving the cooperative the ability to balance load and further integrate renewable resources into its operations. This 20-year agreement provides for 34 megawatts (MW) of power to be stored and discharged up to six hours for a total discharge capability of approximately 74 gigawatt-hours (GWh) in year one of operation.

“The use of batteries on our distribution network is essential to a resilient and responsive power system and we are excited to be moving ahead aggressively with Whetstone to get this system online,” stated Mark A. Gabriel, President and CEO of United Power. “These battery arrays will give us the ability to balance our power needs throughout the day and incorporate local renewables more efficiently. This furthers our efforts in hyper-localizing our power supply.”

Whetstone’s battery system will be located at a United Power substation and grid-charged, enabling the system to store energy during off-peak periods and discharge during periods of higher consumption. Further, the system will be operated as a six-hour solution, allowing it to discharge over a fairly long duration and thereby providing additional grid stability. This should allow United Power to use more renewable energy, further reducing its carbon footprint while ensuring reliable service to its membership. “We are proud to be a partner with United Power on this unique battery storage project,” said Collin Franceschi, Whetstone Power’s founding partner. “It was a real pleasure to work with the experienced team at United Power and find the ideal solution to meet their needs for helping to ensure clean, sustainable, and resilient energy for years to come.”   

Whetstone anticipates that the asset will be placed into service in 2024.

United Power serves nearly 110,000 meters and maintains and operates more than 6,500 miles of distribution line. The 900-square mile service territory wraps around the north and west borders of the Denver International Airport. It includes the north and northeast metropolitan development corridors along Interstate 25, Interstate 76, State Highway 85, and E-470 and the Golden Gate and Coal Creek canyons, two of Colorado’s most iconic and historic mountain canyons. As a result of its geographic location, United Power’s system is experiencing significant demand and energy growth, averaging approximately 6% annually.

United Power is building a power portfolio ahead of leaving its current power supplier on May 1, 2024. The cooperative recently announced a prior agreement with Whetstone, in addition to agreements with Guzman Energy, OneEnergy, and Ameresco for portfolio assets related to this exit.

Learn more about United Power’s power supply transition. 

About United Power

United Power is a member-owned, not-for-profit electric cooperative, delivering electricity to homes, farms, and businesses throughout Colorado’s northern Front Range. The cooperative is one of the fastest-growing electric co-ops in the nation, and in June 2021 joined the elite ranks of cooperatives serving more than 100,000 meters. The 900-square mile service territory extends from the mountains of Coal Creek and Golden Gate Canyon, along the I-25 corridor and Carbon Valley region, to the farmlands of Brighton, Hudson, and Keenesburg. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, X, LinkedIn, YouTube, and Instagram.

About Whetstone Power

Whetstone Power shapes and facilitates the sustainable energy transition one project at a time through project development, ownership, asset management, and advisory services. Whetstone thrives on solving complex problems by leveraging the experience of its leadership to provide comprehensive and unique solutions to solve utility, institutional, commercial, and industrial customer energy supply and infrastructure needs. This includes solar, storage, and conventional generation assets in both greenfield development and project redevelopment opportunities. For more information, visit www.whetstonepower.com. 

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I remember my second day on the job at Central Vermont Public Service when the process of setting electric rates was explained to me by the utility’s head of ratemaking. My head was swimming with numbers when the CEO, Tom Webb, whom I had never met, popped into the room. Shaking his head, he told me the only thing I needed to know about rates is to keep them as low as possible and always at or below the rate of inflation.

United Power’s staff has worked diligently to keep all costs in check, including insurance premiums. Initiatives like our industry-leading wildfire mitigation plan have allowed us to secure insurance coverage and keep premium increases low. The same is true for the efforts around insurance for cybersecurity, medical, and facilities.

Additionally, the entire organization is working to improve processes to better manage resources and ensure high reliability as costs increase. The cooperative is identifying pathways to optimize efficiency, such as expanding its asset management program to allow for more cost-effective planning. 

We have all felt the recent challenges of inflation. Here at your cooperative, we have held rates flat since Jan. 1, 2020, despite galloping increases in all areas. A typical distribution transformer found near your home used to cost $1,747 in 2019 and today runs $3,113 – assuming one is even available due to supply chain shortages. The cost for larger units has increased nearly 150%, from $35,689 to $88,286. Even simple electrical cable, the main commodity in our business, has gone from $2.39 per foot to $3.81 – a 59% increase!

Power supply represents 75% of our costs. No matter how well we manage the other 25%, the cost of power has the largest impact on rates. Our current power supplier has filed at the Federal Energy Regulatory Commission for a considerable rate increase effective Jan. 1, 2024. The change in their rate structure will impact United Power significantly due to the shift from generation costs to transmission. Specifically, if they charge more for transmission – to deliver the power – those costs will have an effect on the rates we have to pay on your behalf.

The good news is that effective May 1, 2024, United Power will move to a competitive market for power with the selection of at least nine providers. Over time, we will have more control over our generation costs as we increase the amount of carbon-free resources and deploy and manage one of the nation’s first distributed battery storage systems. These systems will allow us to buy and store power when energy prices are low and use it when the demand is high. As a wholesale energy market comes to Colorado in 2026, we will further be able to leverage becoming a distribution system operator by buying and selling resources across the western marketplace.

Even with our concerted efforts, we must implement a rate increase across all our member classes, because we recognize the importance of operating a financially strong member-owned cooperative. We are extremely conscious of the impact that even a small rate increase has on our members and commit to continue working to find ways to lower rates into the future.

United Power wants to work with you to help manage your electric bills and has a team of dedicated employees to provide information, audits, and tips to moderate any rate impacts. They can be reached during normal business hours by phone at 303-637-1300 or via online chat at www.unitedpower.com. Likewise, members may email the United Power Member Services team. 

The new rates, which go into effect Jan. 1, are split between the demand charge and energy charge. The energy component will include a power cost adjustment, providing us the flexibility to move that portion up and down if needed.

Inflation has risen a staggering 21% since our last rate increase four years ago. I hear my old CEO’s words echoing in the back of my mind: “…keep rates as low as possible, and always at or below the rate of inflation.” Tom, we are working hard to do just that!

Please feel free to reach out to me with any questions.

United Power announces the publication of its first Social Responsibility report. The report recaps the cooperative’s accomplishments, performance, and progress in four defined areas – social, governance, safety and risk, and environmental. The inaugural report was approved by the United Power Board of Directors during the September board meeting, marking a significant milestone in the member-owned cooperative’s ongoing commitment to transparency, sustainability, and responsible management.

Each area of concentration is important to the overall operational and financial health of the cooperative, and utilities that measure performance in these areas consistently rank among the best in the country. The comprehensive report showcases United Power’s values of responsibility, integrity, and reliability, while outlining specific actions taken to support these tenets.

“We are excited to feature the many initiatives and accomplishments of the cooperative in this report,” stated Mark A. Gabriel, United Power President and CEO. “While annual reports highlight the prior year’s performance and the cooperative’s financial position, the Social Responsibility report provides our members a deeper understanding of the actions we are taking to further our mission to provide the best possible service.”

Key highlights from United Power’s inaugural Social Responsibility report include:

• Social Impact. The report highlights the cooperative’s efforts to create a positive impact within the communities it serves. This includes both cooperative- and employee-supported initiatives; the promotion of tolerance, acceptance, and inclusion in the workforce; and the careful attention to the integrity of data and information.
• Governance Excellence. The co-op’s governance structure and practices are outlined, highlighting the cooperative regulatory model, member engagement in director elections, and the cooperative’s corporate behavior and codes of conduct around financial transparency, accountability, and ethical conduct.
• Safety and Risk Management. The report outlines the many ways the cooperative is building and maintaining a resilient and safe infrastructure to protect the communities it serves. Through a comprehensive wildfire mitigation and vegetation management strategy, a strong safety culture, and broad-based approach to addressing risk, the cooperative is actively working to ensure the safe and reliable delivery of electricity.
• Environmental Responsibility. The cooperative’s innovative energy programs are highlighted, showing the depth of the co-op’s commitment to providing sustainable, flexible, and affordable power for members. Through efficiency measures and programs to make emerging technologies more readily accessible, United Power is paving the way for the evolving energy landscape.

Electric cooperatives have a long history of measuring success in these operational areas and are guided by a set of principles that emphasize social responsibility and transparency. United Power’s Our Cooperative Roadmap is the long-range action plan addressing how the co-op will tackle the challenges of the evolving utility landscape. The Social Responsibility report, which will be updated annually, will allow members to gain a greater understanding of the cooperative’s goals and accomplishments.

National Drive Electric Week is Sept. 22 - Oct. 1

The Colorado Energy Office announced an ambitious grant program in 2018 to develop several electric vehicle (EV) fast-charging corridors throughout the state, making travel possible even across its large rural and mountainous areas. Many of these corridors have started to come into shape over the past couple years, which is a large part of why the state has consistently been ranked among the best places to own an EV as a daily driver. 

Once completed, several of those corridors will traverse along interstate, state, and U.S. highways that intersect United Power’s suburban territory north and northeast of Denver. The cooperative proactively launched its own fast-charging network in conjunction with ChargePoint in 2019, and received a grant from the Colorado Energy Office to install its second location in Keenesburg in 2021. A third was also added at the Carbon Valley office last year. The network was designed to bridge gaps in available charging options and make rural EV ownership more practical and feasible.

Members who are still unsure about EVs may be interested in learning more about new programs United Power has introduced in the past year, including United EV, a pilot program that provides cost-effective at-home charging solutions, and make-ready wiring rebates, providing up to $1,000 toward the cost of preparing your home for an EV charger.  

United EV enrollment provides a complete service package including installation and setup of a wall-mounted ChargePoint Home Flex level 2 charger and maintenance and repairs for the duration of the enrollment period. All this is available for a $19 monthly service fee. 

For more information about United EV, available wiring rebates, and charging network locations, visit the cooperative’s EV Home or reach out to the Energy Management team at 303-637-1233.