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. 
 

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.
 

Brighton, CO - United Power, an electric cooperative based in Brighton, Colorado, is the first distribution utility in the Western Interconnection to join the Southwest Power Pool (SPP). SPP is a regional transmission organization (RTO), a nonprofit corporation mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale electricity prices on behalf of its members.

“Since United Power is leaving our current wholesale power supplier in 2024, it is important that we seek out memberships and partnerships that will help us assure a reliable power source at the lowest cost possible,” stated Mark A. Gabriel, United Power President and CEO. “Our membership with SPP is one of the critical pieces we wanted in place as we move toward a new energy future for our members.”

SPP works as an aggregator of generation resources, dispatching the power where it is needed. The value of belonging to an RTO is multi-pronged for cooperatives like United Power. The power pool is charged with building reliability and predictability into their power marketplace and helping to reduce the risks that come with varying weather conditions. It is also committed to providing the lowest cost power available to serve its members, minute by minute.

The SPP is responsible for identifying power needs for the region it serves. Members of SPP will have an active role in determining where new transmission is built and will be able to have their interests represented directly.

“Membership matters. Our membership in SPP means we will have a meaningful say in the strategic direction of the organization,” stated Gabriel. “Members have an active role in determining how this new energy market develops and how the organization grows. We will be able to directly represent the interests of all United Power members.”

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 cooperatives 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, Twitter, LinkedIn, YouTube, and Instagram.

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Nothing affects your energy use and your bill like extremely low or extremely high temperatures. Especially when those temperatures stay high for an extended period, as we’ve experienced over the last month.

Heating and cooling are the largest contributors to your energy use, so when the temperature drastically rises, usage and bills go up. Your home’s age, how many people live there, and how cool you keep your home all play a part.

So, what can you do? United Power offers a variety of tools and programs to help you manage your budget and be more energy-efficient.

Monitor Your Daily Usage

Through the United Power mobile app and the Power Portal, you can watch for trends in your usage to see how much energy you’ve used before your bill arrives.

Make Your Smart Thermostat Work

Enroll your Nest or Honeywell smart thermostat in our Smart Rewards program and you’ll help us curb energy during peak times. This saves the cooperative from purchasing expensive peak power, reduces your energy use, and we pay you $25 at the end of the summer for participating.

Enroll in Pay As You Go

Never receive a bill after the fact. With Pay As You Go, you pay for electricity the same way you pay for gas or groceries, keeping you well informed of how much energy you’re using and what it is costing daily.

Energy-Saving Tips

Check out these energy-saving tips to help lower your bill:

• Keep your thermostat setting as high as you can. Every degree below 78 can increase your bill three percent or more.
• Have your air conditioner serviced regularly and don’t forget to change the filters. Dirty filters reduce air flow and cause your system to work harder, which can increase your cooling costs and lead to costly repairs.
• Plug those leaks! Use weather stripping, caulk or foam insulation to fill in the leaks around windows, doors, or under your sinks where the pipes go into the wall.
• Block the sun! During the day, close your blinds or curtains, especially on windows that face the sun to avoid extra heat gain.

Brighton, Colo. - The Federal Energy Regulatory Commission (FERC) this week issued four initial decisions as part of the rate settlement proceedings between United Power, an electric cooperative headquartered in Brighton, Colo., and its wholesale power supplier Tri-State Generation and Transmission Association, Inc. (Tri-State). 

On May 26, FERC Administrative Law Judge Scott Hempling handed down decisions in the cooperative’s favor on three of four issues and ordered Tri-State to give United Power significant refunds concerning energy storage resources (i.e., battery storage). 

As one of the settling parties, United Power agreed to the rate settlement at FERC after four key issues were reserved and set for hearing this spring: transmission and delivery system cost unbundling, direct assignment of non-networked delivery facilities (cost causation), energy storage resources, and the discriminatory nature of Tri-State’s Board Policy 119 (BP 119) regarding community solar programs.

“These rulings are significant as they will provide long term benefits to all Tri-State cooperative and their members, in identifying and controlling system costs and assuring the costs are allocated to those who benefit,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “The decision will also impact Tri-State’s claims in the contract termination payment methodology currently awaiting FERC decision, and guide the future work of Tri-State’s rate design committee as the ruling dictates rate structure, ultimately mandating more transparency to all Tri-State members.”

Under the rulings in favor of United Power, FERC determined that Tri-State must unbundle its rates into generation, transmission, and each of the six ancillary services, assuring that the costs of each element are properly identified and disclosed. The FERC judge also determined that Tri-State’s 2023 come-back filing must explain the integration status of each element using appropriate accounting and engineering data, allocating the associated costs accordingly so that facilities used to deliver electric power are properly identified and the costs allocated to those who use them known as “cost causation.” Further, it was found that Tri-State’s special policy for certain community solar programs (BP 119) is unduly discriminatory. This results from a cost-benefit ratio that varies widely depending on a member’s size. Judge Hempling characterized this mismatch of costs and benefits under BP 119 as “textbook undue discrimination.”

A split decision was issued regarding energy storage resources. It was found that Tri-State improperly charged United Power and must provide refunds from September 2019 forward. Judge Hempling specifically ruled that Tri-State cannot use board policies to manipulate the contract and filed rate terms. He also ruled that Tri-State’s inconsistent treatment of energy storage resources is unduly discriminatory, but resolution of that issue was outside the scope of the proceeding. 

“The reserved issues before FERC are ahead of the rate settlement case being heard in Washington, D.C., and final rulings on these issues bring United Power closer to our contract termination payment determination,” said Gabriel. “We are pleased with the fair outcomes of these rulings by FERC and look forward to the day when United Power has more control of the power supply mix serving our members.”

United Power filed a non-conditional Notice of Intent to Withdraw from Tri-State, effective May 1, 2024, and simultaneously issued a request for proposals for up to 600 MW of wholesale electric supply. A ruling from the presiding FERC judge on exit fees for Tri-State members is expected by the end of the summer, with a final decision expected in 2023.

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 cooperatives 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, Twitter, LinkedIn, YouTube and Instagram.

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