United Power, a member-owned electric cooperative serving Colorado’s northern front range, has been investigating its power supply options with Tri-State Generation & Transmission over the last several years, as is the fiduciary responsibility to its member-owners. As part of its investigation, United Power filed a request for the Colorado Public Utilities Commission (PUC) to exercise its authority to establish a just, reasonable, and nondiscriminatory exit charge from Tri-State Generation & Transmission. Tri-State is a cooperative generation and transmission association headquartered in Westminster, Colorado which provides wholesale power to 40 utilities across four states, including United Power.

“United Power members deserve clean, affordable energy and we have an obligation as a cooperative to look out for the financial interests of our member-owners. We have been working for the last few years on solutions with Tri-State that would allow the co-op the flexibility to add local resources, or purchase lower cost power from other sources,” said John Parker, Chief Executive Officer for United Power. “Conversations regarding our power agreement with Tri-State have stalled and the cooperative is seeking out all possible alternatives to build in rate reductions and offer more renewable options to our energy mix.”

Power purchase agreements with Tri-State limit the purchase of additional power by United Power to just five percent of total power requirements. United Power, along with several other cooperatives, championed a bylaw change that would allow Tri-State member cooperatives to enter into partial requirement contracts.  These new partial requirement contracts are an essential component of any successful plan to de-carbonize Colorado electricity generation consistent with Colorado state policy objectives by reducing United Power’s reliance on Tri-State’s high-priced, carbon-intensive power mix. Not only that, they would allow the cooperative to better meet demands for local renewable energy projects, and ultimately reduce costs for United Power members. Since the resolution was passed earlier this year, the two parties have been unable to come to agreements on proposed solutions, and recently Tri-State placed a moratorium on all partial power and buy-out conversations until mid-2020.

“By not allowing United Power to move forward in a timely manner to seek additional energy sources, Tri-State is effectively holding this cooperative and our members hostage,” said Parker. “We are seeking partial requirements and/or buy-out solutions that are in the financial interests of the Tri-State cooperative family, and mutually beneficial to the ratepayers we serve. A full disclosure of a fair and just exit package is the information United Power needs to evaluate and ultimately make effective choices for our members.”

Colorado’s Public Utilities Law gives the Commission broad jurisdiction over public utilities like Tri-State, thus United Power has asked for their intervention to obtain a fair exit price and pricing methodology from Tri-State.

Annual Regulatory Meeting Planned for November 8, 2019

Meeting Agenda

Every year, the United Power board takes a deep dive into the rates we charge for electricity and considers both the revenue requirements of the cooperative and the anticipated load growth for the cooperative in setting rates for the upcoming year. The United Power board will be considering some adjustments in current rates and adding an additional rate for 2020 at its November 8 Regulatory Meeting.

Recommendations from staff for the upcoming year include a modest 1.5-2% increase for residential members. Similar to last year’s rate changes, the adjustment being proposed would slightly increase the demand component and reduce the cost of energy. In 2019, the cooperative incorporated a demand charge into their residential rate, while reducing the cost of energy.

“When United Power rolled out the advanced metering infrastructure several years ago, we were able to collect better data about how each member uses power in their home or business,” stated Dean Hubbuck, Director of Power Supply and Rates. “Using this data, we constructed a rate that considers not only how much power a member consumes, but we can also measure their impact on the grid that supplies that power. By breaking apart these separate components members are billed more accurately for their use and impact.”

The rate structure not only allowed the cooperative to charge members more fairly for their impact on the electrical system, but it also put more power into the hands of members to control their costs by shifting the way they use electricity in their homes. For instance, by spreading out the use of household appliances like dryers and dishwashers through the course of the day, members can have a direct impact on their demand and reduce their costs.

This year, the board is also considering a new rate that would help lessen the impact on members who utilize electric heating technology in their homes. Homes utilizing electric thermal storage units experienced a larger impact from the rate change in 2019 when compared with the average household. A group of members concerned about the increase met with staff and board members to voice their concerns and ask the board to consider their unique situation.

“One of the best things about being served by a cooperative is that members have direct access to their regulators – the board of directors,” stated Hubbuck. “In response to our members concerns we hosted public meetings, and the new rate being considered in November is in response to these meetings.”

The changes are planned to be in effect for consumption beginning January 1, which means members would see the changes on their February bills. Once the rate adjustments are decided, the changes will be communicated via the United Newsline and on the cooperative’s website.

United Power offices will open at 10 a.m. on Tuesday, November 26th in anticipation of the incoming winter storm.

To make a payment, manage your account or report an outage, please login to SmartHub https://unitedpower.smarthub.coop/

As always, our dispatch and operations personnel remain on duty to respond to outages and emergencies.

The early morning sun shining off the Touchstone Energy hot air balloon provided the perfect backdrop for United Power at the Adams County Fair in early August. 

United Power partnered with Touchstone Energy Cooperative’s national balloon program to present two donations to local nonprofits that are doing incredible work in our community:

Food for Hope

There are thousands of children in Adams County who receive little to nothing to eat when they are not at school. Food for Hope seeks to empower and nourish the future of our community by providing nutritious food to children in need. 

Foster Source

Provides relevant training, resources and support to foster parents from a trauma-informed approach, giving them the skills and confidence to spark healing in vulnerable children.