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. 
 

As Published in the Denver Post and Longmont Times Call:  November 9^th, 2018

You are hereby notified that UNITED POWER, INC. (United) proposes to make changes to several of its rate tariff schedules to become effective for energy usage on or after January 1, 2019 (billings issued after February 1, 2019). A cost of service study was updated and indicated an increase was necessary for several rate classes. There will be a rate increase to the Residential (R1) rate class of 1.5% and a 2% increase to the Residential Time of Use (RTD1) and Irrigation (IRR2) rate classes. The Industrial Service – Substation or Transmission (ITD1, ITD2, ITD3 and ITD4) rate classes will have an increase of .7 mills per kWh. The Residential (R1), Residential Time of Use (RTD1), Small Commercial (C1), Small Commercial Time of Use (CTD1), Irrigation (IRR2) and Small Industrial Primary (SIP1) will have a demand charge of $1.00 per kW added with a reduction in the energy charge per kWh. The Residential Demand Pilot Rate (RD1) will be eliminated and a new Smart Choice rate will be established for residential service. There will be minor rate language updates for consistency to Residential (R1), Residential Time of Use (RTD1), Small Commercial (C1), Small Commercial Time of Use (CTD1), Irrigation (IRR2), Small Industrial Primary (SIP1), Large Commercial Secondary Demand (ISD1) and Large Industrial Primary Demand (IPD1) rate classes. The Rules and Regulations, Service Rules and Regulations, and the Service Connection and Line Extension Policies will be reformatted.

The present and proposed tariff provisions are available for examination at the Coal Creek Branch Office, located at 5 Gross Dam Road, Golden, Colorado; the Ft. Lupton Branch office located at 1200 Dexter Street, Ft. Lupton, Colorado; and the headquarters office located at 500 Cooperative Way, Brighton Colorado.

Anyone who desires to comment about the proposed changes shall file either an informal complaint or a formal complaint with United at 500 Cooperative Way, Brighton, Colorado 80603 at least 10 days before the proposed effective date.

An informal complaint shall be in writing and shall contain such facts and other information to adequately state the reason(s) for the complaint.  An informal complaint shall be considered by United, in regard to the proposed tariff changes, but will not require that a hearing be held.

Anyone who desires a hearing must file a specific and formal complaint to the proposed changes and a request for hearing at least 10 days before the proposed effective date.  A formal complaint shall be in writing in the form prescribed by United’s Regulations Governing Consumer Complaints and Related Matters. Upon request, a copy of said regulations is available from United.

United may hold a hearing to determine what changes will be authorized, regardless of complaints.  If proper formal complaints and request for hearings are timely filed, the Board shall schedule a hearing.  The changes ultimately authorized may or may not be the same as those proposed and may include changes different than those tariffs proposed or currently in effect.  Anyone who desires to receive notice of hearings, if any, shall make a written request therefor to United, at the above address at least 10 days before the proposed effective date.

UNITED POWER, INC
By: John D. Parker, Chief Executive Officer

Utilities throw around terms like distribution system, electric infrastructure and “the grid.” But as an electric consumer – and cooperative member – have you given much thought into how you use the electric system, and your role in maintaining that system? 

Our distribution electric system, or grid, is a network of poles, wires, transformers and substations – all interconnected to deliver the power you need, when you need it. The system is carefully engineered to meet the needs of the energy consumers connected to it, while ensuring the installation, operation and maintenance is economical. 

Costs to maintain the system aren’t just based on the power you buy, system infrastructure costs are also attributed to how much power you use at a given time. When you use more power at once, you’re creating a higher demand on the system. These surges in demand have a greater impact on the grid, so they cost more money. 

With the traditional blended rate where the impact of demand surges is rolled up into a charge based on the power used, some members have been paying more than they should, while others aren’t paying enough. But here’s the thing: whether you use a lot of energy, a little energy, or generate your own, we all need a reliable grid to be there when we need it. 

By separating demand and energy components on your bill, we are more fairly distributing these costs to members based on how they use power. Each member will now pay their fair share of the cooperative distribution system they rely on.

If you want more information on how you use power, login to the Power Portal to view your usage and demand trends. Visit www.unitedpower.com/powerportal to begin. Find your high demand periods, think back to what was running in your home, and then stagger those appliances moving forward. The grid, and your wallet, will thank you. 

If you have additional questions about the demand rate and how it will impact you, email unitednewsline@unitedpower.com.

Demand for Electricity is like Demand for Water

You can fill the same 5-gallon bucket with either a garden hose, or a fire hose. A garden hose will not fill as quickly – but the hose costs less to operate, and the impact on the water system is minimal. Fill that same bucket with a fire hose, and it will fill up very quickly, but the surge of water from a fire hose requires larger pipes and a more expensive hose. In the end, both buckets would be full with the same amount of water, but filling a bucket more slowly – smoothing the water use over time – creates less demand on the system and costs less to do. 
 

Earlier this month, United Power went live with its much anticipated battery storage facility at its new west office, located on the I-25 Frontage Road south of state Highway 119. The project, developed in collaboration with ENGIE, is the largest utility battery storage facility in Colorado. 

The introduction of battery storage to United Power’s portfolio will allow the cooperative to save an expected $1 million each year in wholesale capacity charges. Energy generated from all sources on United Power’s grid will be stored during low-demand hours to be discharged during high-peak periods throughout the year. 

United Power’s primary goal for its battery storage facility is peak shaving, but it also better positions the cooperative to respond to future innovation and development within the energy environment. 

“Understanding storage is the next logical step in the progression of renewable generation,” said Jerry Marizza, United Power’s New Business Director. “Without the ability to store energy, renewables will have an artificial cap placed on its utilization.” 

On bright days when the sun is shining, solar fields may collect more energy than can be immediately used. Without proper storage capabilities, that excess energy is lost. Allowing the capture of both wind and solar energy produced at off-peak times when demand is low conserves energy and saves money.

“As a co-op, we have an obligation to our communities and individual members to explore these new options to meet this ever changing energy environment,” Marizza said. 

The Tesla battery system United Power and ENGIE utilized for this project is a larger version of the lithium ion battery found in Tesla’s popular electric vehicles. Through years of testing and refinement, Tesla batteries have become the industry standard in energy storage. 

The system has the capacity to store and distribute up to four megawatts of energy, or enough to power up to 700 homes simultaneously. Size and duration of the batteries used was determined during a study of United Power’s monthly load profile.

“As one of the fastest growing co-ops in Colorado, United Power wants to stay ahead of the curve when it comes to integrating new technology that can help boost reliability and keep costs down,” said John Parker, United Power CEO, during the project announcement this past year. “Energy storage will play an important role in the grid of the future, and we’re excited to be starting now.”

The new battery storage facility builds on United Power’s reputation for adopting and implementing innovative technology, such as the Sol Partners Cooperative Solar Farm – the first of its kind in Colorado – and Methane to Megawatts Project at the Erie Landfill – only the second of its kind in the state. More than just renewables, these projects also make economic sense for our members while providing reliable energy.