Colorado electric cooperatives United Power and La Plata Electric Association are weighing all options to change their existing energy procurement contract with Tri-State Generation and Transmission Association (“Tri-State”). In dual November filings with the Colorado Public Utilities Commission (“CPUC”), both cooperatives asked the state’s regulating body to exercise its authority to provide a just exit charge from its existing contract with Tri-State. Currently, both entities are required to purchase a minimum of 95% of their power from Tri-State under existing contracts that run through 2050. In addition, a recent S&P report downgraded Tri-State’s credit rating, with one of the reasons being that its Members’ retail energy rates were at least 20% higher than the statewide average.

“As the largest member in the Tri-State cooperative, we have a responsibility to our 92,000 residential and commercial customers to provide them with the cleanest and most affordable energy possible,” said John Parker, Chief Executive Officer of United Power. “Our current contract with Tri-State forces us to purchase some of the dirtiest energy in Colorado, while our customers pay 20% more than what is the state average. We’ve spent 18 months trying to change this contract, and all that we have gotten from Tri-State is delays, evasions and excuses. On behalf of our customers, we will no longer accept this.”

Tri-State relies heavily upon fossil fuels to provide power to its 43 cooperative members across four states, with 56% of its energy generation coming from coal, which is a significantly higher reliance on coal than other energy providers in Colorado. With the passage of HB19-1261, energy companies in Colorado must start work to reduce greenhouse gas emissions, and Tri-State is not well-positioned to meet these new standards.  As renewable energy production continues to drive down the price of energy, Tri-State’s continued reliance on fossil fuels is also hitting its members in the pocketbooks as well as putting the cooperatives at risk of not meeting the new clean energy standards.

 “Our community should have a choice,” said Jessica Matlock, Chief Executive Officer of La Plata Electric Association. “We want to be a part of the clean energy future and can achieve this through working in our backyard, with our community. We can bring jobs and economic growth to Colorado, while also supplying carbon-free energy to the region. We are disappointed that Tri-State is not partnering with us to achieve this clean energy future together. We want input into the process and choice when it comes to a cost-effective and clean energy future, not a one size fits all approach developed without input of the affected member cooperatives.” 

In response to United Power’s and La Plata Energy’s filings with the CPUC, Tri-State recently filed a motion to dismiss their complaints because they do not believe that the CPUC has jurisdiction over these matters. Instead, Tri-State claims that the Federal Energy Regulatory Commission has jurisdiction over their rates, even though their initial application was rejected in October for being deficient and incomplete.

“Tri-State is going up against a much larger tide that they spent years refusing to confront,” said Parker. “Tri-State’s lack of urgency in addressing these matters is aimed solely at self-preservation rather than what is best for our customers.”

The CPUC has set a date of January 10th to receive testimony on the matter and is expected to make a decision by early April.

About United Power
United Power is a member-owned, not-for-profit electric cooperative delivering electricity to more than 92,000 meters at homes, businesses and farms in Colorado's north-central front range. For more information about the cooperative, visit www.unitedpower.com or follow them on social media at facebook.com/unitedpower or twitter.com/unitedpowercoop.

About La Plata Electric Association
La Plata Electric Association, Inc. (LPEA) is a member-owned, not-for-profit, electric distribution cooperative serving La Plata and Archuleta, with segments of Hinsdale, Mineral and San Juan counties. There are 22 cooperatives in Colorado, LPEA is the fifth largest cooperative in the state, providing safe, reliable electricity at the lowest reasonable cost to approximately 34,000 members.

More Residential Rate Options Available to Members

Residential Rates Understanding Demand

A modest increase in residential rates proposed by the United Power board of directors in November became effective in January. Members on the Standard Residential rate will see a 1.5% rate increase, which amounts to an average increase of $1.58 per month. Members on the residential Time of Day and Irrigation rates will see a 2% increase, or an average monthly increase of $3.23. While the increase became effective beginning with usage on January 1, 2020, members won’t see the increase on their bills until February statements are mailed out.

Changes to residential rates include a small increase to the demand component, which was introduced to members beginning in 2019, and a corresponding reduction in the energy charge. For example, in the Standard Residential rate, the demand charge increased by 50¢ per kW while the energy charge dropped from 10.15¢ per kWh to 9.95¢ per kWh. The separation of the demand and energy elements allows the cooperative to more accurately, and fairly, charge members for their usage and impact on the system.

In addition to the rate change, residential members now have more options with the addition of the new Peak Time of Day Rate. Members who opt into the new rate will pay a slightly higher demand charge than on the standard residential or time of day rates, but are only charged for demand during on-peak hours (2 p.m. – 10 p.m., Monday – Saturday), providing more incentive and savings when members switch usage to off-peak hours.

“United Power is constantly looking into its rates and trying to find the best way to serve its members both individually and collectively,” said Dean Hubbuck, Director of Power Supply and Rates. “The addition of the Smart Choice and Peak Time of Day rates over the past two years has given members more options to find something that’s flexible and works for them.”

The new Peak Time of Day rate offers relief to members who utilize energy-intensive appliances that can cause spikes in demand overnight, such as electric thermal storage. With the new rate, members can charge their storage off-peak without worrying about demand. Electric vehicle owners who charge at night will also benefit from the new rate.

United Power will also be adding a new component to its billing statements that shows members exactly when they hit their peak demand. While this information is available through the Power Portal, it is not currently printed on bills. To find detailed information on United Power’s available residential rates for 2020, go to Residential Rates. There you can compare the demand and energy charges of each rate and choose one that works best for you.

The cooperative has also compiled a helpful list of resources to better understand the demand rate, including videos, printable materials and frequently asked questions. To view these resources and more, go to Understanding Demand.

When it comes to greening up Colorado’s power supply, seismic shifts aren’t just coming out of the state Capitol.

They’re also shaking out of rural Colorado, places like Coal Creek Canyon where utility customer Stephen Whiteside lives. 

Whiteside is a conservative Republican. He’s also pro-renewable energy. It’s not a combination you’d expect, but a recent poll by Pew Research suggests many Republicans favor wind and solar. 

But Whiteside doesn’t support renewables by building a big solar array in his backyard. He does it by cheering on his rural electric cooperative, United Power. In November, United Power said it’s considering parting ways with fossil fuel-heavy power provider Tri-State Generation and Transmission in pursuit of cheaper electricity bills and more renewable energy.

“I think that’s fairly recent that renewables may be more cost-effective than other types of energy,” Whiteside said. “To me that makes a lot of sense to pursue that kind of avenue.”

Grace Hood/CPR News

Right now, Tri-State gets about one-third of its power from renewable energy. Customers like Whiteside want more renewables because they think it will bring cheaper rates. According to a recent estimate by Standard and Poor’s, electricity rates for Whiteside and others under the Tri-State System could be as much as 20 percent above the statewide Colorado average. 

Here’s how the model works now: United Power bands together with 42 other rural electricity providers, called electric cooperatives, to buy power from one entity: Tri-State.

“What that model has not done is kept up with the technological changes in the industry,” United Power CEO John Parker said.

Parker thinks it all adds up to growing pressure on the economic model that rural utilities have followed for decades. In the '80s and '90s, power providers like Tri-State invested heavily in coal-fired plants. Now, they’re trying to green up. 

United Power is not the first or the last utility looking into leave Tri-State. La Plata Electric Association has filed a complaint with Colorado regulators seeking an exit fee from Tri-State.

Grace Hood/CPR News

If those utilities part ways, they’ll follow in the footsteps of two other rural utilities: Colorado-based Delta Montrose Electric Association and New Mexico-based Kit Carson Electric Cooperative. Delta Montrose got the OK to leave its generation and transmission association (known as a G&T) with Tri-State in 2019. Kit Carson left in 2016.

“Just as the industry changes, [generation and transmission cooperatives] have to change,” said Lee Boughey, Tri-State senior manager for communications and public affairs.

Generation and Transmission Cooperatives like Tri-State formed in rural America in the middle of the last century. It was historically expensive for rural electricity providers to provide power because they just served a few customers per mile of the electricity line. That’s unlike urban utilities, which have hundreds of customers per mile. G&Ts helped shoulder the burden by providing power to rural utilities, building expensive coal-fired power plants and setting up contracts that lasted decades to help pay off the plants.

Flashforward to 2019, and power customers like Parker have a keen interest to modernize the grid and experiment with battery storage to keep customers like Whiteside happy. United Power owns the largest battery in the state, but it’s locked into a contract with Tri-State that lasts another 30 years. After power supplier Tri-State quoted United Power a $1.2 billion exit fee to leave its 30-year contract, Parker turned to state regulators for help. 

“That’s the balance we’re trying to find. If it costs us $1.2 billion to get out, we probably can’t save enough money to make that work,” Parker said.

Boughey said 2019 was a big year for Tri-State. It opened up community solar options to its members and brought 104 megawatts of new wind power online. It announced plans to build a 100 megawatt new solar farm. Its Nucla coal-fired power plant was retired early from service, reducing emissions and making operations more efficient.

Tri-State’s member cooperatives are finalizing new contracts that would allow rural utilities like United Power more flexibility to buy renewables. Currently, they’re capped in their contracts at generating just 5 percent of renewable power locally. 

Nate Minor

One of the challenges for Tri-State will be to get even more fossil fuel sources off its financial books as it faces regulatory pressure to do so in Colorado and New Mexico. Legislatures in both states passed carbon-reduction goals for utilities this year. Tri-State will be required to participate in expensive planning. However, there are no financial penalties if Tri-State doesn’t meet the goals.  

“As we move into 2020 and chart our course for the future I think there should be confidence that we’ll be able to meet the challenges ahead,” Boughey said. 

Similar disputes are playing out between rural utilities and their power suppliers across the United States. In Indiana, Tipmont Rural Electric is seeking to part ways from its power supplier over high rates. In Minneapolis, suburban utility Connexus is in the midst of talks with its power provider to get lower rates and more flexibility.

“Today memberships across the country are expecting more from their G&Ts. They’re expecting competitive prices and a greening of the grid,” Connexus CEO Greg Ridderbusch said. 

Like United Power, Connexus is locked into a decades-long contact with its power provider. Ridderbusch said in the future it will be important for his utility and others to form more robust partnerships with their power suppliers. 

“We need the G&T to lower the constraints on things we’re doing in our own backyard for our members,” Ridderbusch said. 

Whiteside said he’s on United Power’s side.

“To have reliable electric service is absolutely critical,” Whiteside said. “If solar power can supplement the other sources that United Power has, it would make sense to do that if it’s available.” 

As relationships start to shift across the country between power suppliers and rural utilities, all eyes will be on Colorado. The Public Utilities Commission could rule on the La Plata and United Power cases in 2020.

Editor’s Note: This story was updated to reflect that Tri-State’s members will ultimately decide how to roll out a partial-requirements contract.

Four Board Seats Up for Election

Four positions on United Power’s eleven-member board are up for election at the 2020 Annual Meeting which is scheduled for Wednesday, April 15, 2020 at Riverdale Regional Park & Fairgrounds in Brighton. One seat in the East, West, South and Mountain districts will be up for a three-year term.

To be eligible to become or remain a director, a person must be a United Power member and receive electric service from United Power at the member’s primary residence in the district he or she represents. United Power’s bylaws provide in-depth information on director districts, qualifications, terms, elections, meetings and officers.

Each member’s district is printed on their United Power statement. Nominations by written petition must state nominee’s name and district, be signed by 15 or more United Power members, and be filed with the board no less than 60 days prior to the Annual Meeting.

The deadline for nominations by petition is 4 p.m. on Friday, February 14, 2020. Petitions are available at United Power’s headquarters office in Brighton at 500 Cooperative Way. Additional information can be obtained by calling United Power’s executive department at 303-659-0551 or by visiting our Annual Meeting page.

See attached flyer below for more information. 

2020 Annual Meeting & Director Election

Wednesday, April 15, 2020

4:30 p.m. | Registration Opens
6:30 p.m. | Balloting Closes & Meeting Begins

Riverdale Regional Park & Fairgrounds
9755 Henderson Road, Brighton, CO 80601

Balloting Deadlines

February 14, 2020 | Direction Nominations by Petition Deadline at 4 p.m.

April 13, 2020 | Mail-in Ballots must arrive at the P.O. Box by 6 a.m.

April 15, 2020 | Ballot Drop-Boxes at offices close at 2 p.m.

April 15, 2020 | Ballot Drop Box Open from 12-4 p.m. at the Riverdale Regional Park and Fairgrounds

Candidate Forums

Attend a Meet the Candidate Forum to learn more about each of the candidates vying to serve on the Board of Directors. The following events are free to members. Light refreshments will be served. RSVPs are not required.  

Thursday, March 19, 2020 | 6:30 p.m. 
Carbon Valley Service Center
9586 E I-25 Frontage Road, Longmont, CO 80504

Friday, March 20, 2020 | 7:30 a.m.
Coal Creek Canyon Community Center
3158 Highway 72, Golden, CO 80403

Monday, March 23, 2020 | 6:30 p.m.
Riverdale Regional Park
Rendezvous Room, located in Waymire Dome
9755 Henderson Road, Brighton, CO 80601

Tuesday, March 24, 2020 | 7:30 a.m.
Fort Lupton Recreation Center
Multi-Purpose Room 3
203 S. Harrison Ave, Fort Lupton, CO 80621

*Dates and locations may be subject to change. 

October is nationally recognized as Breast Cancer Awareness Month, an annual campaign to increase awareness and rally people to help fund research to find a cure for the disease.

This October, United Power joined the ongoing battle to find a cure through an employee-led effort to support colleagues, raise funds and create awareness. The idea began to spread after co-op linemen asked permission to wear pink hard hats throughout the month, and evolved into a company-wide engagement effort.

“It’s exciting that this movement began internally by our linemen,” said Community Outreach Specialist Julie Stewart. “It’s even more exciting to see the support from the rest of our employees. As a co-op, caring for our communities is a core part of who we are, and I think this demonstrates how much they care.”

The cooperative issued linemen pink hard hats to wear on the job throughout the month of October, and employees received pink “United for the Cure” shirts. Employees were encouraged to wear their shirts every Thursday during the month. To raise funds for breast cancer treatment and support, internal departments donated themed silent auction baskets. The silent auction raised $5,000. The check was presented to the Platte Valley Medical Center Foundation at an employee meeting in November.

“The employee engagement and support we witnessed was more than we could have hoped for,” said Member Engagement Officer Meghan Dewey. “This was a heartwarming suggestion from employees, who all helped contribute in a big way.”

Breast cancer impacts hundreds of thousands of families every year. This year alone, approximately 270,000 new cases of breast cancer are expected to be diagnosed in women in the United States, not including non-invasive forms. It is the most common form of cancer diagnosed in women aside from skin cancer.

You can continue to help the fight locally by donating to the PVMC Foundation, which supports critical patient programs at Platte Valley Medical Center.

United Power has payment kiosks at our Brighton, Coal Creek and Carbon Valley office locations. These easy-to-use and hassle-free kiosks accept cash, credit card or check payments. Cash and credit card payments made using a kiosk are applied to your account immediately, and accounts subject to disconnection are restored immediately upon payment.

To make a payment at one of these kiosks, bring your United Power account number and a form of payment. 

Set Up Your Fast Pass for Quick Access

To make your transactions faster, there is an option to set up a “Fast Pass,” which will be prompted once you complete a successful transaction. You’ll create a 4-digit PIN and receive a printed barcode.

The next time you visit a United Power payment kiosk, select “Fast Pass” and quickly find your account with the barcode/PIN or the phone number you used when setting up your Fast Pass.

Please be careful to enter the correct phone and account numbers when making a payment because your Fast Pass will reflect these numbers exactly as you input them.