In June, United Power proudly joined with local electric cooperatives from around the country to sponsor teenagers from small towns and cities to spend a week in the nation’s capital learning about the political process and interacting with their elected officials. The Electric Cooperative Youth Tour has been a tradition among cooperatives since the late 1950s.

The origins of the Youth Tour date back to the National Rural Electric Cooperative Association’s 1957 annual meeting in Chicago, where keynote speaker and future president Lyndon B. Johnson suggested sending youth to the capital to “actually see what the flag stands for and represents.” 

What began with a small group of 34 students from Iowa in 1958 has since ballooned to nearly 2,000 students from 42 states. To date, nearly 50,000 students have participated in the program.

This year, United Power sponsored three local students to represent the cooperative during the 2018 Youth Tour – Hannah Rockwell of Weld Central High School, Jordyn Saffy of Eagle Ridge Academy, and Megan Lewis of Frederick High School.

Between meetings with elected officials, learning the value of the cooperatives they represent and developing leadership skills, students were able to spend time touring some of Washington D.C.’s landmarks and memorials. Before flying out, Colorado students were also treated to a high-voltage safety demonstration at United Power’s headquarters in Brighton, Colo. 

Each year United Power selects three ambitious high school students to attend Youth Tour. Applications to represent the cooperative during next year’s tour will be available in December. 
 

This past month, United Power announced a new line item would be appearing on member electric bills to prepare them for a new rate structure taking effect next year. The new line item, a Demand Charge, will not have a cost associated immediately, but will show the member’s highest usage interval in kilowatts (kW) from the previous month. The Demand Charge line item is appearing on bills now with no charge to give members an opportunity to understand how this new rate can help them better manage their energy costs.

Members on the standard residential rate are very familiar with total energy used, which is billed in kilowatt-hours (kWh). But the new residential demand rate will also measure the power, or demand component of electricity consumption, which is measured in kilowatts (kW). This demand component is something that many customers are less familiar with, so let’s talk about “watt” drives your demand.

Demand is measured in kilowatts (kW). One kilowatt equals 1,000 watts, which is the equivalent of turning on ten 100-watt light bulbs at once. Understanding the wattage of your household appliances will help you take control of your energy bill, but where can you learn more about this information?

Common wattage ratings can be found online, or by using tools like a Kill-A-Watt monitor. Below are some sample wattage ratings for common household appliances. Remember: the larger the wattage of an appliance, and the more appliances you operate at once, the higher the impact it can have on the energy usage and demand on your overall electric bill. 

Now is the time to pay attention to your energy use patterns. Staggering the use of higher wattage appliances will be the easiest way to manage your electric bill under the new rate structure. How many appliances do you run at once? Do you come home and turn everything on after the house has been empty all day? Are you using technology to help you remember to offset energy use like timers, delay start settings and programmable thermostats? Focusing on how you’re using your household appliances will help you see the corresponding affect to your energy and demand, and United Power’s new Demand rate will put you in the driver’s seat of your electric bill. 

Capital Credit Retirement to Distribute $4.5 Million to Members in August

Even if you’re new to the cooperative world, you’ve probably heard membership has its benefits. Maybe you’ve already heard how consumer membership works or you understand the ability to participate in annual director elections. Perhaps someone you know ran for a seat in a previous election. But you may be confused in the coming weeks when you receive a check in the mail from United Power with your name on it — your little “piece of the pie.”

When you make a payment to United Power, a portion of that payment goes directly toward your investment in our electrical system through capital improvements. These improvements help maintain our system, provide reliable energy to you and your neighbors and propel us into the future. 

However, capital improvements aren’t always necessary, leaving the cooperative with a surplus of funds earmarked for these projects. So, each year, the Board of Directors assesses the cooperative’s financial condition and determines if a “capital credit retirement” period is feasible. This year, the board approved a $4.5 million retirement, to be distributed to members in August. 

Capital credit retirements are the refund amounts members receive during this period. United Power establishes a capital credit account for every member, and uses it to record their investment. Each year funds remaining after expenses are allocated to these accounts. Upon board approval, a percentage of these funds may be retired. This year’s retirement represents the 12th consecutive year United Power has retired capital credits. 

Your capital credit amount is determined based on two factors: how much electricity you use and how long you’ve been a member. The longer you are a member and the more power you use, the larger your share of each retirement. 

“United Power has a commitment to providing reliable energy to our members, but we also prioritize doing so at an affordable rate,” said John Parker, United Power’s Chief Executive Officer. “While we talk a lot about the benefits we provide to our members both individually and in the community, receiving something you can hold in your hands is a meaningful benefit, and one that differentiates cooperatives from other utilities across the country.” 

This year, more than 80,000 checks will be issued to residential and business members. Anyone who had service in 2017 or earlier will be eligible for this year’s capital credit retirement. While many members will receive a check, anyone who is refunded an amount less than $10 will receive it as a credit on their bill. Look for this credit on your bill in August or September. 

United Power issues checks because it’s important for members to see the real benefit of membership, and handling a check achieves that goal. 

“We know some checks won’t pay the rent, but it does provide a little extra cash to tide someone over until their next paycheck,” said Parker. “For our larger users, like local businesses, municipalities, farms and school districts, these checks may have a substantial impact.”

Capital credit retirements have returned a steady stream of money back to members in recent years. During the past decade, United Power has been able to retire millions of dollars back to its members. 

Frequently asked questions about capital credits can be found online at www.unitedpower.com, or you can call a member services representative at 303-637-1300.

Important Reminders:

• If you move, please be sure to leave your new address with us so we can continue to refund any capital credits you are eligible to receive in the future. 
• Upon death, the deceased member's capital credit account is available for estate retirement. The representative of the estate should contact United Power to settle the capital credit account. 

Beginning this fall, United Power residential members will begin to see a new line of information on their bill – the ‘Demand Charge.’  For the remainder of 2018, members will see a number of kW multiplied by a zero dollar amount.  This number represents the highest level of ‘demand’ that your electric consumption creates on our system, and there is currently no cost assigned to that demand.  

While it is simply a way for you to begin understanding how you impact the electric grid today, it will eventually become a way for members to 
control and impact their own electric bills in the coming years.

What’s in your rate?

Today your rate incorporates many different costs – the cost of fuels to generate electricity, the cost to deliver the energy to your home, the cost to the electric cooperative to maintain and repair the system, even the cost of billing is included in the rates you pay. Residential members have been paying a blended bill for a long time, because most members use power in a very similar way. However, we now have access to more information about how individual members use power. We have information about every member’s energy consumption in 15 minute increments, and we can actually determine how individual households are impacting our system. This additional information allows us to break apart the various components of your electric bill and charge you more precisely for the two largest components of your bill: your impact on the electric system, or your ‘demand’ on the system, and amount of power you consume – your energy use. 

So, what is ‘demand’?

The demand charge that United Power will show on your bill is the highest amount of electricity used during a 15 minute period in that billing month. 

Here’s a simple demonstration:

Both Mary and Joe use the same amount of energy, but Joe’s demand is higher since he is using his appliances simultaneously. Mary has a lower demand because she’s staggering the use of her appliances.  

It costs more for the cooperative to serve Joe’s home than it does to serve Mary’s because we need to have the ability to produce and deliver the energy for both appliances at the same time.  We may have to plan to have additional electric generation plants or increase system resources to meet Joe’s higher demand and that comes at a cost to the entire co-op.  Under the new demand rate, if Joe continues to use power the same way his bill will be higher than in the past and Mary will see a savings. While these changes tend to be small for most households, the new rate structure will more closely represent the actual cost to provide that power.

Now is the time to study the demand number printed on your bill and determine how you impact our electric system. In 2019, our members will begin to see a cost attached to the demand portion of the bill, and a corresponding reduction in the cost of energy. While this new rate structure will provide a fairer bill for each of our members, it’s important that you understand how your behavior affects your demand. To help you understand demand, we will be providing a series of articles in upcoming issues of United Newsline and on our website.

It's Your Money, and Here's How it Works

Capital credits are just one of the ways United Power is different from other utilities. We’re different because we’re owned by you, our members. As we’re heading into our retirement cycle, here’s a brief synopsis of how capital credits work.

Step One: Membership

If you receive power from United Power, you are not just another customer. You are a member. Members have unique privileges, one of which is the principle of economic participation. A portion of each electric bill goes toward the cooperative’s operation and infrastructure, making you a part owner. 

Members may also vote annually in board elections or run for a board seat to make their voices heard. By actively engaging and participating with the cooperative, you will always have a voice in our operation. 

Step Two: Allocation

Every spring, United Power looks at the prior year and allots any funds remaining after all expenses are paid into a budget item called “patronage capital.” These designated funds are then “allocated” to members, based on the prior year’s electric consumption – the more power you use, the larger your allocation. 

The allocation is not a check, but a bookkeeping of the amount of money you have invested into the cooperative’s electric system based on your electric consumption. This allocation amount is reflected as an actual dollar amount on your bill in May each year. 

Step Three: Retirement

Every year our board decides if a capital credit “retirement” is feasible. If they decide to retire capital credits the money is paid out or “retired” from each member’s account, based on their past electric use and length of service. At United Power, anyone who receives a retirement of $10 or more receives a check, and any amount under $10 is returned as a credit on members’ bills.    

Look for more information about this year’s capital credit retirement in our August issue, and we’ll tell you how to enter to win a prize just for telling us how you’re going to use your capital credit refund!