Incumbents Retain East, West and South Seats, New Director Fills Mountain Seat

Brighton, Colo.—Growth in every industry sector is a challenge United Power is facing as they work on “Building Tomorrow’s Cooperative,” the theme of the 78th Annual Meeting held on Apr. 18th. Nearly 850 attendees represented over 420 registered cooperative memberships at the annual member event held at the Adams County Fairgrounds. The evening included dinner, exhibit booths, entertainment, cooperative reports, and the election of directors.

Races for a seat in all four director districts were decided by a vote of the members. Incumbent Directors James Vigesaa and Ginny Buczek retained their respective seats. Director David Rose won the race for his seat in the South District. Incoming director Tamra Waltemath won the seat in the Mountain district left vacant by the retirement of director Douglas Pryce.

Member registration opened at 4:30 p.m. in the Exhibit Hall and was followed by balloting in the annual director election and a full barbeque dinner. Members then visited informational exhibit booths and enjoyed live entertainment by solo guitarist Dave Connelly in the Waymire Dome. The business meeting began at 6:30 p.m. in the Waymire Dome, and was broadcast live in Exhibit Hall.

Board Vice President, Susan Petrocco from the south district opened the business meeting at 6:30 p.m. with the invocation, followed by of the presentation of the colors by Brighton Fire Department Honor Guard and the singing of the national anthem by local Brighton High School graduate Lauren Rocha.

Board President, Brian McCormick, introduced the cooperative Directors and Executive Leadership team, and then Vice President Petrocco made a special presentation in honor of retiring director Doug Pryce, who has served on the United Power Board of Directors for 27 years. Petrocco listed the various local and national positions Pryce has held during his tenure as a United Power director.

“While Doug served on various national and state positions, he still found the energy to serve the United Power board in various leadership capacities,” said Petrocco. “He has served this cooperative and its members well.”

McCormick then called the meeting to order, introduced the candidates running for board seats in 2017 and introduced the cooperative reports for the evening. First to report was Troy Whitmore, Director of External Affairs for United Power. Whitmore presented this year’s Youth Report which included a special check presentation to United Power’s 2017 scholarship recipients. Students receiving awards were recognized on stage by Asst. Secretary-Treasurer Ursula J. Morgan and President McCormick.

McCormick followed with the President’s report which included an overview of United Power’s vision, mission and guiding cooperative principles. McCormick then reviewed power mix of Tri-State Generation & Tranmission, United Power’s wholesale power provider and energy sales trends for United Power. McCormick wrapped up his report by introducing United Power’s Chief Executive Officer, Darryl Schriver and reporting that United Power remains in strong financial condition and committed to delivering excellent service and value to its members.

Assistant Secretary-Treasurer Ursula J. Morgan took the stage to review the cooperative’s financial report. Morgan gave a summary of the highlights and the full financial report was made available to all members at the meeting in United Power’s 2016 Annual Report. The Annual Report is also available online at www.unitedpower.com.

Morgan reported operating revenues for the cooperative were up over $11 million—up more than 5 percent from 2015, which is mostly attributed to higher energy sales for the year. Energy sales, which grew more than 9 percent last year, are up mostly due to new large oil and gas related loads. The cooperative’s operating expenses totaled $212.3 million in 2016, an increase of $13 million from 2015, nearly all of which is due to higher purchased power costs. Morgan reported that the cost of purchased power represents over 76 percent of United Power’s operating costs.

After accounting for all revenues and expenses, United Power realized net margins of $13.7 million, and based on this sound financial position, the cooperative board authorized the retirement of $4.3 million in capital credits to the members in 2016. Morgan reminded the audience that the board evaluates the cooperative’s financial position each year to determine if a retirement is warranted and announcements about capital credit retirements are published on the cooperative’s website and newsletter, United Newsline.

United Power’s Chief Executive Officer Darryl Schriver took to the stage after a brief video highlighting the substantial growth in United Power’s service area. Schriver discussed some of the ways the cooperative is planning and preparing for an influx of members and new load on the distribution system. Schriver also discussed the operational changes that have been made since taking his position last April to make sure United Power’s crews are proactively addressing system maintenance issues.  and new construction contract crews can be ramped up to better meet new construction schedules. He talked about how contract crews are being used to better meet new construction schedules.

Schriver went on to discuss the addition of 19.5 megawatts of renewable solar power that was energized on the United Power system in 2016. A solar farm in Fort Lupton is generating 13 megawatts of power and the Maverick solar farm in Mead is generating 6.5 megawatts. These new systems are powering more than 4,000 homes in the United Power service territory with local renewable energy.

“In the coming year I am challenging United Power employees in every operational area to look at the way they serve our members,” said Schriver. “I want them to explore ways to streamline, improve and leverage technology to provide a better experience for our members.”

Schriver then announced the purchase a new building located in the west district of the cooperative’s service area on I-25, just south of the Hwy 119 exit. Schriver explained that serving the entire membership from one location on the easternmost corridor of the territory is becoming problematic. The new facility will provide a second location for operations crews to respond more quickly to communities in the northwest corridor of the territory and to provide additional back up support to United Power’s mountain territory. The facility will also offer members a full-service walk-in member services department.

President McCormick then moved to the member forum portion of the meeting. Prior to the start of the meeting, board members collected comments of general interest from members in attendance. A selection of those questions were addressed by the Board President and Chief Executive Officer during this time.

Election results for the 2017 director election were announced following the member forum. United Power members cast 5,730 ballots, and the following results were certified by the Election and Credentials Committee at the 2017 Annual Meeting.

The South district was the only contested race on the ballot this year and David Rose won that seat with 3,393 votes, beating out Keith E. Alquist who received 2,209 votes.

In the Mountain district, the retirement of Douglas Pryce left the seat open for candidate Tamra Waltemath, who ran unopposed. Waltemath received 5,093 votes.

Incumbent directors James E. Vigesaa in the East, and Virginia “Ginny” Buczek in the West ran unopposed and retained their seats with 5,065 votes for Vigessa and 5,102 vote for Buczek.

RESULTS OF THE 2017 UNITED POWER DIRECTOR ELECTION

EAST DISTRICT

James E. Vigesaa   5,065

SOUTH DISTRICT

Keith Alquist   2,209

David Rose   3,393

WEST DISTRICT

Virginia (Ginny) Buczek   5,102

MOUNTAIN DISTRICT       

Tamra Waltemath   5,093

United Power is in the process of closing a deal to purchase a 130,000 square foot facility located on the west side of the cooperative’s service territory. CEO Darryl Schriver made the announcement at the cooperative’s Annual Meeting at the Adams County Fairgrounds.  The new facility is located on the east side of I-25, just south of Highway 119.

“The purchase of this building is a great step toward meeting some of United Power’s strategic goals,” stated United Power CEO, Darryl Schriver. “As the territory becomes more populated, our ability to respond quickly and efficiently to our members is vital. This west office will allow us to dispatch trucks and personnel to the west and north sides of our territory quickly without the substantial drive time from the headquarters in Brighton.”

The final closing is planned for next week. The new facility will help the cooperative free up space in the Brighton headquarters to have more room for training and storage. Plans are also in place to lease part of the facility back to United Power’s primary contractor, Ward Electric. Ward Electric recently added United Power logos to their trucks to help members quickly identify cooperative contractors in the field.

“This facility is a win for the cooperative, for Ward Electric and for our members,” stated Schriver. “We’ve been able to negotiate a great financial deal on this purchase, in part because the seller appreciated the cooperative’s profile in the community and sees us a valuable resource. Now we’ll be able to better support the rapidly growing areas in our territory by having trucks and staff that can respond from both sides of our plains territory.”

United Power is also in negotiations to acquire an adjacent plot of undeveloped land. The additional property would allow for the addition of on-site material storage and expanded parking. The cooperative will be communicating updates about the new facility and how it will be used via the member newsletter United Newsline and on the website.

Over the next few months, United Power is conducting annual pole inspections throughout the cooperative service area. This essential maintenance helps to keep our electric delivery system performing at the highest possible level. United Power has contracted this inspection service with Utility Asset Management Inc. While contract crews are working in your area, you may see this marked contractor vehicle and their employees visually inspecting the utility poles serving you.

In a few instances, Utility Asset Management crews may need access to poles located in yards. Should they need access into a fenced yard, they will work directly with the member to schedule an appointment. Contractors will not need access into any homes to complete this maintenance work.

United Power also uses our automated phone system to send out a recording alerting members when we will be working in your area. To ensure you receive these important updates, please confirm the phone number on your account by calling United Power at 303-637-1300 or by logging into your account via SmartHub.

If you have any questions about this maintenance work, please call our Member Services department at 303-637-1300.

Increase Offsets 4.23 percent Wholesale Power Increase from Tri-State

United Power’s Board of Directors approved a rate increase of 2.79 percent for residential and commercial members in 2017. The rate increase, coupled with cost containment efforts, will offset the 4.23 percent increase in wholesale power from Tri-State Generation and Transmission, United Power’s wholesale power supplier.

The average residential member will see an increase of less than $3 a month in their bill, while commercial members will see just under a $13 increase. The rate increase would become effective for usage beginning February 1st, so members will not see the increase until their March, 2017 bill.

“The board and staff worked hard looking at the ways we could contain operating costs to lessen the impact of this increase on our members,” said Darryl Schriver, CEO. “This modest increase will help the cooperative remain financially healthy, and should make a minimal impact on most members’ electric bills.”

Tri-State Generation and Transmission, a generation cooperative headquartered in Westminster, provides wholesale power to 43 distribution cooperatives in a four state region, including United Power. Tri-State indicated that both increased expenses and lower revenues have made the increase necessary.

An unexpected mid-year increase in power costs from one of their larger suppliers, coupled with increased costs of producing power is stated to be key drivers of their expense increases. Tri-State states that cost increases are being driven by regulatory compliance, additional environmental controls and increases to basic fuel and production costs.

Tri-State is also forecasting a reduction in revenue, due in part to lagging oil and gas production, slow growth, and closure of several large manufacturing and energy production facilities throughout their territory.

In 2014, United Power absorbed most of a 1.6 percent wholesale power cost increase by adjusting rates to a handful of rate classes, and reducing some operational costs. In 2015 only one industrial rate was adjusted even though many costs continued to increase for the cooperative.

“I am pleased with the effort both the board and staff made to find a rate solution that balanced the cooperative’s financial health and the well-being of our members,” Schriver said. “We remain committed to looking out for all our members, while continuing to build a system that delivers safe and reliable power.”