Lawsuit Alleges Tri-State Generation and Transmission Conspired to Mislead Cooperative Members

United Power Lawsuit Outlines Impact of Fraudulent Actions of Power Supplier

Brighton, CO – United Power today filed a lawsuit in Adams County District Court alleging that their power supplier, Tri-State Generation and Transmission recruited three non-utility entities as part of a conspiracy to defraud United Power and try to hold it (and possibly other cooperative members) captive in expensive and restrictive power contracts. Court documents outline how the years-long scheme intentionally misled members and ultimately caused financial harm to United Power and the almost 95,000 meters it serves. Named along with Tri-State in the lawsuit are three non-utility entities – MIECO, Inc., Olson’s Greenhouses of Colorado, LLC, and Ellgen Ranch Company - whom Tri-State convinced to orchestrate the scheme designed to prevent the Colorado PUC from deciding a fair exit charge for United Power.

“We have only recently been made aware of these unacceptable transgressions at Tri-State. On behalf of the board and staff of United Power, I can only say that I am dismayed and disappointed by the actions of Tri-State’s staff and these non-utility entities who worked together to intentionally mislead United Power and any other members who were acting in good faith during this time,” stated Bryant Robbins, Acting CEO. “We have been transparent and ethical in our dealings, and we think it’s important that Tri-State and these other entities answer for their unethical behavior.”

Documents filed in District Court outline the years-long scheme to fraudulently direct the actions of United Power and other members to accept certain bylaw changes with the hidden agenda of allowing the admission of the three non-utility entities, in direct conflict with both State law and Tri-State’s own bylaws. United Power supported these bylaw changes with the belief that such changes would allow it to pursue a more flexible power supply arrangement with Tri-State. However, Tri-State suspended the use of the newly created class of membership immediately after utilizing the amended bylaw to allow these non-utility entities to join the membership under false pretenses. The suit contends that Tri-State directed the scheme that used the non-utility entities in an effort to secure FERC oversight and effectively eliminate the ability of the Colorado PUC to resolve matters such as exit fees and other potential disputes.

“United Power worked within the framework of the cooperative business model, intent on securing a solution that would support our sister cooperatives and provide some financial relief for our members while allowing us to stay within the Tri-State family,” stated Robbins. “Unfortunately, Tri-State was working behind the scenes with ulterior motives taking measures that would essentially handcuff United Power to the current restrictive contract.”

Two cooperatives have already left or are in the process of leaving the Westminster-based generation cooperative – New Mexico-based Kit Carson in 2016 and Delta-Montrose Electric Association pending final approval to leave in 2020 – both cited similar concerns with power supply flexibility and pricing in their exits. United Power had been working to secure a fair and just exit charge from Tri-State, but ultimately filed a case with the Colorado Public Utilities Commission when they were unable to make progress in negotiations with Tri-State. Since that time, Tri-State has continued to resist negotiations, all the while working behind the scenes to defraud the membership through a secret initiative intended to eventually prevent United Power from exiting Tri-State.

“We strongly believe the evidence supports why it has become very difficult to trust the intentions of our power supplier,” stated Robbins. “In filing this case, we hope that Tri-State and the three non-utility entities will have to answer for their ongoing deception.”

United Power is a member-owned, not-for-profit electric cooperative delivering electricity to nearly 95,000 meters at homes, business, 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.

###

United Power proudly announces its scholarship recipients for 2020. Each year, the cooperative awards more than $19,000 in scholarships to outstanding students in its service territory. The United Power Scholarship Committee selected seventeen high school seniors based on grades, test scores, extracurricular activities and a brief essay. Applications are made available at the end of each year.

United Power’s 2020 scholarship recipients will be announced during the cooperative’s Annual Meeting & Director Election on April 15 and recognized in its monthly newsletter to members. The 2020 scholarship recipients are:

•     Jade Glaister, Legacy High School, United Power Colorado College Scholarship, $2,000
•     Wesley Swieter, Weld Central High School, United Power Colorado College Scholarship, $2,000
•     Madison Harper, Erie High School, United Power Youth Leadership Scholarship, $1,500
•     Skylar Tempel, Erie High School, Basin Electric Power Cooperative Scholarship, $1,000
•     Calla Winner, Peak to Peak Charter, Tri-State Generation & Transmission Scholarship, $1,000
•     Elizabeth Dexter, Fort Lupton High School, Lois Lesser Education Scholarship, $1,000
•     Rylie James, Prospect Ridge Academy, Bill Berens Memorial Scholarship, $1,000

United Power dedicates a book scholarship to each high school within its service territory, provided it receives an application. This year, United Power distributed ten $1,000 book scholarships, including one “at-large” selection. Book scholarships for 2020 were awarded to Brianna Diaz, Brighton High School; Angelica Fletcher, Prairie View High School; Megan Harrison, Eagle Ridge Academy; Michael Clementson, Frederick High School; Dina Zito, Ft. Lupton High School; Blake LaVanchy, Mead High School; Ivonne Olivas, Weld Central High School; Claire Diekman, Mountain Territory; Jeffrey Fitzjohn, Erie High School; and Claire Fisk, at-large selection.

Congratulations to all the scholarship recipients, and thank you to all the students who submitted their application. United Power is committed to supporting the postsecondary education efforts of students it serves.

Article originally published on April 18, 2020. 

United Power is returning $5.5 million in Capital Credits to members beginning in May and nearly every member is getting a payment. Due to the unique economic stresses being placed on our members because of the COVID 19 situation, United Power’s Board of Directors has opted to distribute Capital Credit refunds earlier than in prior years. In past years the retirements were made in August, but the United Power Board felt members could use the economic relief now.

“We know that many of our members have been impacted by this health emergency – through cuts in pay, job losses, or increased health costs,” said Bryant Robbins, Chief Executive Officer. “This retirement will provide money back to nearly all our members when they need it most.”

In 2020, United Power is retiring $5.5 million to members. The total amount of money retired is divided among all members and is being issued in May. Additionally, while these payments have typically been issued as checks, more refunds will be applied to bills in order to reduce the need for our members to go to a bank during this health emergency. Members receiving a retirement of $50 or less, will see a bill credit directly on their May electric bill. Those receiving larger retirement amounts will receive a check.

Capital credits represent ownership in United Power and are one of the most unique and rewarding benefits afforded to members of electric cooperatives. Unlike investor-owned utilities that maximize profits to pay dividends to shareholders, not-for-profit electric co-ops like United Power provide our members with “at cost” electric service—we do not exist to earn a profit. At the end of each year, after all operational expenses have been covered, a portion of any excess funds is returned to the members in the form of capital credits. Learn more about capital credits, or if you have additional questions please call our Member Services team at 303-637-1300.

In addition to the advancement of Capital Credit refunds, the cooperative has temporarily suspended disconnections and is providing payment arrangements for members who have been directly impacted by COVID 19. The Board of Directors has also established the Co-op Cares fund allocating $250,000 in unclaimed capital credits to provide direct assistance to members facing hardships due to the pandemic.

Any members who may have troubles paying their electric bills are encouraged to call United Power at 303-637-1300 and our Member Services team will match them with all of the available resources and assistance options. 

For your safety, and ours, please maintain a safe distance from our crews. They're on the front line keeping the lights on and we'd appreciate your help keeping them safe and healthy. Approaching lineworkers can compromise their health during this pandemic and it also distracts them while they are performing critical work.

Recently, more members have been approaching our crews while they continue to work to keep the electric grid maintained and powered. We realize this may be a stressful time, and more of our members are home to observe this work near their property. But please keep in mind that the health and safety of these essential workers is paramount to keeping your power flowing. 

To protect our essential workers, we have closed our offices to walk-in traffic and dispersed our office personnel to remote work stations. We have temporarily suspended any in-home visits like energy audits, and our crews should not need access to the inside of your homes to complete their work. Field crews are wearing masks made of the same fire-resistant material as their uniform shirts, and our crews will maintain a safe distance from our members while working near your property. 

Please also keep in mind that the electric system serving you delivers high-voltage electricity and our trained linemen can often be working on or near energized electrical equipment. To keep you safe from electrical dangers, and to protect the health of our vital field crews, please keep a safe distance from equipment and anyone working in the area.

We are happy to answer your questions about work being completed, so instead of approaching crews, please call our office at 303-637-1300. We're here at a safe distance with the same commitment to power what matters to you. 

United Power recently installed a new payment kiosk at its Brighton office location, available now for member use. The installation of the new kiosk adds a third location for members to make payments via kiosk, joining the Carbon Valley Service Center and the Coal Creek Canyon office. Payments made using a kiosk at any of the three locations are quick, simple and hassle-free. 

Payment 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. 

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.

Bring your barcode 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.

Article originally published on April 10, 2020

United Power Board of Directors Allocates $250,000 to Co-op Cares Fund to Support Members Economically Affected by the COVID-19 Pandemic

Brighton, CO – United Power’s Board of Directors approved a special allocation of $250,000 in unclaimed capital credits to be used to help offset electric bills for members impacted by the COVID-19 pandemic. The Co-op Cares Fund is designed to assist members who have been directly impacted by COVID-19 – particularly those who have been affected by illness and job losses.

United Power knows that many families have been impacted by this ongoing situation and we are working hard to support the membership. United Power, like many other utilities in Colorado, temporarily suspended disconnects and late fees on all residential and small commercial accounts during this health emergency. [Disconnections for non-payment resumed in July]

“The Co-op Cares Fund complements the many other ways United Power is helping our members weather this situation,” stated Bryant Robbins, CEO. “As a member-owned cooperative, we are always looking for ways to support our members during tough times, and this situation has impacted our members in so many diverse ways.”

While no residential or small-commercial utility services were disconnected from March through June, United Power members are still expected to pay their bill when they are able. In addition to the Co-op Cares Fund, United Power has various programs to help members keep their accounts current including extended payment arrangements, budget billing and other assistance programs. The current temporary suspension of disconnects merely postpones an eventual utility shut off once the suspension is lifted. United Power encourages members to contact us before that happens so we can connect you with the best programs for your needs.

“United Power has several ways to help with members when they are having difficulty paying their electric bills,” stated Robbins. “All we are asking our members to do is pick up the phone and call us if you are having difficulty paying your bill. We can’t help you if we don’t know you are struggling.”

The Co-op Cares Fund will be available for assistance through the end of 2020, or when the fund is depleted. United Power members who are impacted by the current health emergency or any other situation can apply for the Co-op Cares Fund, login to your online account and complete an application.

The application can be found under Contact Us > Report an Issue/Inquiry > Submit Other Issue > Inquiry Type: Application – Coop Cares Fund.

Billing Assistance

United Power is a member-owned, not-for-profit electric cooperative delivering electricity to nearly 95,000 meters at homes, business, 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.

###