Today, United Power enjoys a seat as one of the most progressive cooperatives across the country. Over the past 80 years, United Power has reached milestones few other cooperatives have, but not without first overcoming a few seasons of turbulence. This is the first in a three part series chronicling the cooperative’s history leading up to its 80th Annual Meeting this April. 

In June 1938, shortly after Franklin D. Roosevelt created the Rural Electric Administration, a group of local farmers in the counties northeast of Denver met to discuss the possibility of forming a cooperative to meet their needs. In October of that year, Union Rural Electric Association was born. The cooperative began construction on lines that would first serve members in late January of 1940. 

Though the outbreak of WWII paused development, growth continued through the 1950s. During that time, Union REA entered a competitive territory battle with the state’s largest public utility, Public Service Company of Colorado (now Xcel Energy), which had begun to see the areas lucrative potential. The battle over service territory would continue throughout the 1980s.

Legislation passed in 1961 finally recognized Union REA, and all other utilities in the state, as full-fledged public utilities with the right to serve certified territories, temporarily halting PSCo’s encroachment on the cooperative’s territory. However, Union REA agreed to allow PSCo to serve some of the fastest growing towns in its territory following a negotiation in 1964. 

In the 1970s, PSCo broke faith with the cooperative as growth exploded in the area during that time. The public utility began aggressively claiming territory beyond what Union REA felt was outlined in the agreement. During that time, Union lost nearly 2000 accounts, and many more were considered “at-risk.” In 1987, the Public Utilities Commission declared the agreement invalid in favor of the cooperative, triggering PSCo to initiate a takeover attempt later that year.

Now more than 10,000 members strong, the cooperative’s healthy growth, combined with the proximity to the Denver metro area, made Union an attractive takeover target. PSCo offered to buy out the cooperative for $62.5 million and compensate members with a $500 cash payout to replace lost capital credits. Union REA leadership felt the offer was disingenuous, and communicated directly with membership until a vote on Saturday, August 22, 1987. Union members ultimately voted against the takeover, placing their faith in the promise of the cooperative future. 
 

In several newsletters in 2018, we’ve discussed the new rate structure and a rate increase of 1.5-2% that goes into effect on January 1, 2019.  It’s important to understand that while the rate change is effective for energy usage beginning on January 1, 2019, members won’t see the changes reflected on their bills until their February statements. 

The new rate structure, which breaks apart the energy and demand components into separate charges, allows us to more fairly charge members for both their energy consumption and their impact on the delivery grid. In the past these two costs were recovered through a blended rate, but with more accurate metering we can now utilize each members’ demand to correctly allocate those costs. 

“From a rate standpoint, we have the right information to correctly charge our members for their impact on the grid and the energy they use,” stated Dean Hubbuck, Director of Power Supply and Rates. “We have put together a rate that should put the power to control electric costs into the hands of our members.”

What is Demand?

Demand is how much capacity you need at any one time to serve the needs of your home or business during the billing period. United Power measures demand in 15-minute intervals, and members will be billed for their single highest 15-minute interval of consumption over the billing period. It is measured in kilowatts (kW) and your highest interval can occur at any time of the day or night. 

How Much Will the Demand Charge Cost Me?

Demand has been reported on billing statements since August of 2018, but without a corresponding dollar amount attached to the line item.  In 2019 members will be charged $1 per kW for the highest 15-minute interval of consumption over the billing period. So, if your demand is 6.97 kW, you would see a charge of $6.97 for this line item.

To offset the demand charge, the 2019 rates also include a corresponding reduction the cost of energy.  Now members can affect their electric bill in two different ways – by staggering use of appliances to reduce demand or by simply using less energy. So, while the rate change increases rates from 1.5-2% overall, members will have more power to control their bill than in the past.

What Affects my Demand?

Major appliances used for heating and cooling, cooking and laundry have the greatest impact on your energy use and your demand. The more appliances you operate at once, the higher your capacity needs are, which will result in a higher demand charge on your bill. Depending on your home, family size and appliances, your demand will vary, and your highest demand season may be different from other members.

How Can I Manage my Demand? 

Staggering the use of major appliances will be the easiest way to manage your electric bill under the new rate structure. When you consistently stagger the use of major appliances so they don’t run at the same time, you can keep your demand low. Make it easier by utilizing technology that helps you offset energy use like timers, delay start settings, mobile apps, and programmable thermostats. In the graph below, the red line represents demand.

Here are some helpful tips to manage your demand:

• Run the dishwasher after you’re done cooking dinner. Even better, use the delay start feature so your dishwasher runs later at night while everyone is in bed.
• Start your clothes washer before you go to bed in the evening, and then run the dryer after everyone has finished cooking breakfast the following morning.
• Grill outside or use small cooking appliances if the air conditioning is running. (Bonus: you won’t overheat your kitchen on a hot day!)
• Set your electric vehicle charger to run after you’ve you turned off other appliances for the day.

The changes to the rates are also complemented by a new Smart Choice Rate that takes the demand concept a step further. This new rate provides two different demand charges, and a much lower energy charge than with any other rate. The higher demand charges and lower energy charges may work well for a member who is willing to shift their demand throughout the day and night, and actively monitor their use. 

How Can I Learn More About My Demand & Energy Usage?

In the past year United Power has rolled out access to the Power Portal, a way for members to look at their energy use in near real time. The portal provides information about when the member is using power in 15-minute increments as early as the previous day.  This is a powerful tool to help members manage their energy use and see how they are impacting the power grid. Used in tandem with the demand rates, the Power Portal will provide the information members need to make good energy choices.  As always, members can call our Energy Management team if they need more information about how they use power, and to learn more about how they can affect their power bills.

To View Demand in the Power Portal:

• Click “My Consumption Data” and then select “Current Month” and “Billing Month.” 
• Turn on the orange Demand line using the controls below the weather data.
• The orange line is your Demand, and the orange diamond is your highest Demand to date, which occurred on December 3rd in this example. 
• Click on that day to view each 15-minute interval to zero in on the exact time your demand was reached.
• From the Daily View, you can hover over the peak demand (orange diamond) and it will give you the interval (14:15 or 2:15 p.m.) and the kW reached (7.064 kW).

You will be billed on your single highest 15-minute interval each month at $1 per kW. In this scenario, the demand charge (to date) would be $1/per kW x 7.064 kW = $7.06. If demand exceeds this amount before the end of the billing cycle, you would be billed at that higher amount.