NOTICE OF CHANGE IN THE RULES AND REGULATIONS TARIFFS OF UNITED POWER, INC.
Date of Notice:  July 12, 2022

You are hereby notified that UNITED POWER, INC. (United Power) proposes to make several modifications to update and reflect current business practices in the Rules and Regulations. These updates are to become effective on or after August 12, 2022.   Staff has reviewed the current Rules and Regulations tariffs. Business units across the organization were involved in the review. The following main areas have been identified as needing revisions or updating: (1) Updating “Customer” to “Member” to recognize our end-users properly; (2) Updating “United” to “United Power” for consistency throughout the entire document; (3) Formatting and grammatical updates for ease of use, consistency, and clarity; and (4) Updates for Current Business Practices to reflect technological changes, system changes, and efficiencies.

The present and proposed Rules and Regulations tariffs are available for examination at the Coal Creek Branch Office, located at 5 Gross Dam Road, Golden, Colorado; the Brighton headquarters office located at 500 Cooperative Way, Brighton Colorado; and the Carbon Valley Service Center located 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 Power 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 changes to the Rules and Regulations tariffs 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 Rules and Regulations 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, President and Chief Executive Officer

United Power was able to send students to Washington, D.C. this year as part of the Electric Cooperative Youth Tour for the first time since 2019. Shared concerns among state electric cooperatives regarding health and safety surrounding the pandemic resulted in the cancellation of both the 2020 and 2021 tours.  

The return of this year’s tour means cooperatives from across the country will sponsor approximately 1,300 high school students for a week in the nation’s capital. While they are in Washington, students will have an opportunity to meet and interact with elected officials representing the state of Colorado, tour historical landmarks and monuments, and learn the value of the cooperatives they represent.  

Each year, United Power selects ambitious high school students to represent it at the Youth Tour. This year, United Power sponsored two local students – Elizabeth Clement, Stargate Charter School, and Noah Kildow, Brighton High School. 

Before departing for Washington, Colorado students toured the state capitol in Denver and met with Gov. Jared Polis, participated in a high-voltage safety demonstration at United Power’s headquarters in Brighton, and heard brief presentations from employees about the various career paths available through the cooperative. 

The Electric Cooperative Youth Tour has been a tradition among cooperatives since the late 1950s. Its origins date back to the National Rural Electric Cooperative Association’s 1957 annual meeting in Chicago, where keynote speaker and future president Lyndon B. Johnson suggested sending youth to the capital to see “what the flag stands for and represents.” A small group of 34 students from Iowa formed the first tour in 1958. To date, nearly 50,000 students have participated in the program. 

Applications to represent United Power during next year’s Youth Tour will be available in early December. Follow us on social media for updates on all of our youth programs.

United Power Exits its Current Wholesale Contract Effective May 1, 2024

United Power caught the attention of electric distribution cooperatives nationwide in April when it filed its non-conditional Notice of Intent to Withdraw from its wholesale power contract with Tri-State Generation and Transmission (Tri-State). The cooperative entered a long-term contract with the generation cooperative when few viable sources of affordable and reliable power were available. At the time, it provided stability for United Power and assurance that members would continue to receive reliable power. But the industry has entered a transition, and the contract is no longer reflective of the cooperative or its members’ best interests. 

The current contract is too restrictive, capping locally sourced power at just 5% of its total load and preventing United Power from bringing more local generation onto its system, which would lower costs and expand member options. Before making the difficult decision to exit its contract, leadership at the cooperative attempted to negotiate a revised “partial requirements” contract. The revised contract would have continued United Power’s membership relationship with Tri-State while also allowing the cooperative to explore and purchase lower cost, cleaner power options on the market. Unfortunately, negotiations to this end failed. 

“Our first option was to continue a mutually beneficial relationship with our wholesale power supplier, where we would continue sourcing a portion of our power from them,” said Mark A. Gabriel, United Power’s President and Chief Executive Officer. “It is unfortunate they were unwilling to help us reach this goal. Although we feel the current contract does not represent shifts taking place in the industry, it was not a decision we made lightly. We spent countless hours weighing our options and discussing a course of action that would result in the best outcome for our members and our future.”

United Power also issued a request for proposal (RFP) for new wholesale power suppliers along with its Notice of Intent to Withdraw. Perspective power suppliers will have until early August to submit proposals outlining their ability to meet the cooperative’s energy needs. Proposals from suppliers are expected to meet three criteria: 

• Energy, the critical resource keeping lights on for United Power members.
• Capacity, the ability to provide continuously reliable power even in adverse conditions.
• Resource adequacy, the assurance generation will be adequate to meet demand even on hot summer days during peak hours. 

“We are expecting a healthy response to our RFP,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “We’ll spend about two months evaluating proposals before selecting a handful of potential suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.”

The final step in United Power’s exit is determining an exit fee, which is currently pending with the Federal Energy Regulatory Commission (FERC). Although the fee hasn’t been determined, FERC has issued a number of decisions in the cooperative’s favor over the past few months. In March, FERC economist Greg Golino determined Tri-State’s methodology for calculating the exit fee was “flawed and unreasonable.” The exit fee could be decided as early as this summer. 

“Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available,” said Beth Martin, United Power’s Board Chairman. “We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save.”

In June, United Power hosted a member forum to discuss its upcoming exit. Gabriel and Hubbuck provided detailed background of how United Power got to this point and where the cooperative is heading from here. The forum concluded with a question and answer session from attendees both online and in person. 

Additional information, including a recording of the forum is available on our Power Supply page. 
 

Incumbency in business has a rich history of companies that failed to plan for the future, even as the facts before them told a different story. It is why planning at United Power resulted in Our Cooperative Roadmap, preparing to continue to support our members with a reliable, resilient, and affordable distribution system.

Most of us can remember a time when almost every community had a Blockbuster video store. At its height, there were 9,000 brick and mortar Blockbuster stores. Then, along came Netflix, with a by-mail rental model. Seeing the future of an increasing digital society, Netflix shifted its strategy to online entertainment and moved a step further by creating its own content. Blockbuster’s response to the evolving Netflix model was to eliminate late fees on its DVD and VCR tape rentals. One company thrived and the other is no longer in business.

In the electric utility world, a similar transition is taking place with more of our members adding solar rooftops (nearly 9,000 thus far), home battery storage (110), electric vehicles (5,200), and dozens of other technologies from Alexa to smart thermostats. More than 700 members have added net metering to date in 2022. This is why United Power embraces technologies and is evolving to become a Distribution System Operator (DSO), which will help facilitate the revolution happening across our member base. Becoming a DSO will allow us to work with our members in controlling power and costs. It is why our team of energy experts is available to answer questions in an unbiased and neutral manner, and it is why we continue developing programs that help you manage your energy costs.

I recently had the opportunity to visit with several of our largest members to listen and understand the critical changes they are facing; how their corporate goals now involve environment, social, and governance requirements; and the criticality of reliable power to keep their businesses operating. Their goals align perfectly with those of United Power as we are “Transforming the Future.”

A big part of acting on the changes in the business is our decision to find a new power supply – one that is more cost effective, less carbon intensive, and keeps dollars in our communities. We held our Power Supply Forum on June 7 where we engaged our members in a conversation about the change which will take effect May 1, 2024. Also, as of June 1, we officially became a member of the Southwest Power Pool, which provides energy market services in Colorado and will allow us to eventually use the collective power as a DSO to better manage the cost of power.

In today’s economic environment we are all concerned with the rising cost of everything. As your cooperative, United Power will continue to find ways to lower costs while meeting member needs. We are there for you in offering energy efficiency audits, recommendations on weatherization, advice on adding solar or storage, as well as piloting programs for in-home electric vehicle charging and battery storage. Please contact us for any of your home or business needs. At United Power, we are working hard to be prepared for the changing demands of our members.

We have a great tradition of excellence, and I want every member to feel empowered to reach out to me and the United Power staff at any time. I welcome the opportunity to meet you where you are; do not hesitate to contact me with any questions, comments, or concerns.

Have a safe and healthy summer.

Red Flag Warning Procedure in Effect This Summer

To address the growing fire risk in Colorado, United Power has put in place new operating procedures. One of the latest precautions the cooperative has implemented is a Red Flag fire prevention procedure. The National Weather Service issues a Red Flag Warning when warm temperatures, low humidity, and strong winds are expected. When combined, these conditions produce an increased risk of fire danger. This alert is issued as a weather advisory and is often mentioned during the weather segment on local news. 

When a Red Flag Warning impacts United Power’s service area, the cooperative will adjust system settings and operating procedures to immediately stop the flow of power if any interference is detected. What this means is if a tree or foreign object contacts a power line, a substation device will open automatically and remain de-energized until a United Power crew has patrolled the power line. If no cause is found and no hazard has been reported, system operators will close the device and restore power. Crews will then patrol the line a second time. Inspecting energized lines may identify an issue and prevent another outage. 

These extra safety measures rely on our crews to complete labor-intensive inspections rather than remotely connecting to automated field devices, which may increase the duration of outages. United Power is committed to providing safe, reliable electric service to members, and recognizes extended outages are inconvenient. If an outage occurs during a Red Flag Warning, crews will work quickly and safely to restore power. 

United Power reminds members to report any power issues and outages. In many cases, member information can help our crews narrow their focus and identify the cause of an outage. 

Members who experience an outage or observe anything that seems out of the ordinary concerning power lines or electrical equipment should do the following:

• Stay clear of downed trees, downed power lines, or damaged equipment.
• Report outages by calling 303-637-1350 or online.
• Monitor our live outage map on our Outage Center.

More information about United Power’s fire mitigation plan and vegetation management efforts are available here.