When Compared to Other Expenses, Electricity has a Surprisingly High Value

Electricity is a commodity we always expect to be available when we need it. We use it to power almost everything in our lives to some extent – from the alarm clock that wakes us up for work or school, to the television that helps us wind down at night, or the cell phone that keeps us connected with our loved ones. It is so readily available and easy to access we do not often realize it has a surprisingly high value when compared to many of our other daily or monthly expenses. 

As a commodity people use frequently and pay for monthly, we are acutely aware of differences in our monthly billing statements. We may be even more mindful of our electric cost when rate increases make headlines. Given the regular information you receive about utility rates, you might be surprised to learn that electricity rates have one of the lowest cost increases over time when compared to other budget items like rent and education. In fact, when adjusted for inflation, electricity rates have been steadily decreasing since 1980 despite how increasingly reliant we are on the resource in our daily lives (source: U.S. Bureau of Statistics).

The average United Power family uses approximately 22-32 kWh per day, which is roughly equivalent to $3. Now think about your daily routine. Do you grab a coffee on your way to work or order food at a local restaurant during lunch? The average cup of coffee now costs just under $5, and for special blends or add-ons it could cost more. Fast casual meals at restaurants like Chipotle or Panera can cost more than $10. That means for the cost of a single cup of coffee, you could leave an LED TV on for more than 35 days or charge your phone more than 300 times on our standard residential rate. For just $5, you can do about 20 loads of laundry. If you were to shift your usage off-peak on our time-of-use rate, you could save even more.

To put it another way, most United Power members spend more on their cell phone plan ($4-5/day) than they do on electricity (as little at $2/day). The time you spend on your mobile device, which is probably a lot, is incomparable to how frequently you require reliable electric service. Many routines and daily tasks are becoming electrified with the introduction of new electronic devices, which means we are also using far more energy now than ever before.

The best way to capture the value of electricity is to make your home more energy efficient. You could make the transition to ENERGY STAR® appliances that require less energy, install a smart thermostat to monitor and adjust heating/cooling when you are away from home, or look into our rates that reward you for switching use to off-peak hours.

NOTICE

NOTICE OF CHANGE IN THE TARIFFS OF UNITED POWER, INC.
Date of Notice:  November 15, 2022

You are hereby notified that UNITED POWER, INC. (United Power) proposes to introduce a new rate tariff schedule for Electric Vehicle Charges to become effective on or after January 1, 2023. The rate structure includes a Charging-as-a-Service monthly rate, company owned charging station rates for DC fast charging and for level 2 charging.

The present and proposed tariff provisions are available for examination at the headquarters office located at 500 Cooperative Way, Brighton Colorado; the Coal Creek Branch Office, located at 5 Gross Dam Road, Golden, Colorado; and the Carbon Valley Branch office at 9586 E. I-25 Frontage Road, Longmont, Colorado.

Anyone who desires to comment about the proposed changes shall file either an informal complaint or a formal complaint with United at 500 Cooperative Way, Brighton, Colorado 80603 at least 10 days before the proposed effective date. 

An informal complaint shall be in writing and shall contain such facts and other information to adequately state the reason(s) for the complaint.  An informal complaint shall be considered by United Power, in regard to the proposed tariff changes, but will not require that a hearing be held.

Anyone who desires a hearing must file a specific and formal complaint to the proposed changes and a request for hearing at least 10 days before the proposed effective date. A formal complaint shall be in writing in the form prescribed by United Power’s Regulations Governing Consumer Complaints and Related Matters. Upon request, a copy of said regulations is available from United Power.  

United Power may hold a hearing to determine what changes will be authorized, regardless of complaints.  If proper formal complaints and request for hearings are timely filed, the Board shall schedule a hearing.  The changes ultimately authorized may or may not be the same as those proposed and may include changes different than those tariffs proposed or currently in effect.  Anyone who desires to receive notice of hearings, if any, shall make a written request therefor to United Power, at the above address at least 10 days before the proposed effective date.

UNITED POWER, INC

By: Mark A. Gabriel, Chief Executive Officer

9.4 Electric Vehicle Charges

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.