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.

Our Cooperative Roadmap (Roadmap) is United Power’s functional plan for the future, and focuses on four specific pillars the cooperative views as essential to strengthening its position as a leader in the electric industry. In previous newsletters, we have highlighted our commitment to pursing affordable and sustainable power, optimizing our distribution system, and our commitment to member and community engagement. The final Roadmap pillar focuses on our information technology (IT) and operational technology (OT) systems strategies, which allow us to be efficient and functional in maintaining our distribution system.

Advancing technologies play a critical role in how United Power responds to and prevents outages. Without the insight computerized systems provide, the cooperative would not be able to see in-depth information about grid performance and conduct targeted maintenance. In a way, this pillar is foundational for meeting the requirements of grid optimization.

“United Power has taken an approach of embracing IT,” said Rex Webster, an infrastructure engineer at the cooperative. “It’s where they integrate us into decision making that allows us to shape and guide workflows, processes, and systems.”

United Power’s Advanced Metering Infrastructure (AMI) is a computerized system that provides the cooperative with information about energy usage. It helps guide grid construction and improvements and ensure sufficient power is delivered where members need it. In many cases, we can use this system to identify and respond to outages before members may even be aware. It is the availability of this infrastructure that also allows us to offer Power Portal to our members, where you can view energy usage in 15-minute segments and make energy-saving habit changes. 

The implementation of informational technology strategies would not be complete without factoring in the ever-increasing threat to cybersecurity. 

“We’ve implemented many state-of-the-art cybersecurity tools and monitoring services on both our field devices and our corporate networks,” Webster said. 

Technology is advancing rapidly, and new technology may be on the horizon that offers even greater insight into our distribution system. While we have no way of knowing what may be available tomorrow, our systems are built to adapt as changes take place. We are constantly looking for advantageous options that enable us to better serve our members. 

“Our Cooperative Roadmap is looking ahead over the next 10 years as we become a more fully functional distribution system operator,” said Reliability Engineer Tyler Bain. “But in reality, we’re already down that path, and we’re already deploying and utilizing the systems that are going to make some of those futuristic thoughts possible today.”

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

Dynamic Calculators Included in Recent FERC Exceptions Filing

Brighton, CO - United Power has filed two exit fee calculators in conjunction with its response to the Federal Energy Regulatory Commission (FERC) initial decision by Administrative Law Judge Renee Terry. These calculators may be used to assist FERC and others as they evaluate the impact of (1) United Power’s proposed balance sheet approach (BSA) incorporating the most recent available data and (2) certain modifications to the BSA proposed by FERC trial staff and adopted by the initial decision. 

The tools allow all 42 utility members to assess their exit fees from Tri-State Generation and Transmission Association (Tri-State) under (1) United Power’s as-filed BSA (“Appendix A”) and (2) the BSA implementing certain adjustments adopted in the initial decision (“Appendix B”). Working copies of the calculator tools, definitions, and descriptions can be found at www.unitedpower.com/powersupply.

The Appendix B fees are modeled based on FERC staff’s exemplary calculations previewed during the hearing process that were adopted in the initial decision, as well as publicly available data, such as Tri-State’s annual financial reports. Each of the 42 utility members can enter a desired departure date and select variables implementing the exit options available under the initial decision. The Appendix B model also calculates alternatives proposed by United Power in its concurrently filed exceptions brief (e.g., a principled 10-year revenue averaging option and transmission revenue adjustment that United Power describes in the brief). These alternatives improve upon the calculations reflecting the initial decision’s overarching principle that the exit fees should be based on the net costs Tri-State incurred to serve the exiting member.     

“We appreciate the hard work by FERC staff in proposing solutions for departure from our power supplier that are in most respects aligned with what United Power has consistently advocated as a fair outcome,” said Mark A. Gabriel, President and CEO of United Power. “By following United Power’s balance sheet approach, everyone can calculate their actual cost to depart. This is critical for future planning for our current power supplier and its utility members. Though the initial decision modifications present implementation questions and other obstacles that we challenge in our exceptions brief, we believe the decision’s principles chart a course toward members’ fair transition to competitive supply and open access.”

United Power has formally indicated its departure from Tri-State, effective May 1, 2024. Learn more about United Power’s departure plan at www.unitedpower.com/powersupply.

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 them on Facebook, Twitter, LinkedIn, YouTube, and Instagram.

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