Brighton, CO - On May 1, 2024, United Power officially departed from its prior wholesale power contract, allowing the cooperative to restructure the energy resources in its power mix and provide a more flexible framework for its members. TEA Solutions, a sister company of The Energy Authority, worked with the cooperative’s team to complete the transition from a single supplier to multiple wholesale energy providers.

“United Power is excited for our revolutionary new energy future,” said Mark A. Gabriel, President and CEO of United Power. “Our move away from a single, central power supplier will give us the flexibility and responsiveness that a utility needs to be competitive in the changing power market. We will be able to better meet the varied needs of our members and provide more predictable costs in the future.”

The cooperative’s partnership with TEA Solutions will provide for a variety of services on the power delivery side, including portfolio management, trading, and load forecasting. The full suite of services will ensure that the cooperative has adequate oversight of its multiple power sources and has an experienced team of specialists working to manage risk in the forecasting and trading markets.

“We’re proud to be United Power’s partner of choice as they begin their next chapter operating as an independent utility,” stated Joanie Teofilo, President and CEO of TEA Solutions. “This partnership demonstrates our commitment to assisting community-owned utilities in delivering reliable and affordable service to their residents.”

United Power’s decision to leave its former power supplier grew from a variety of changes in the electric delivery market and the fact that wholesale power represented 74% of all the cooperative’s costs prior to its departure. The previous contract also made it difficult to meet the growing demand for the integration of local generation sources, including rooftop solar. Additionally, the structure required that the cooperative cover a growing percentage of the power supplier’s costs that did not directly benefit United Power members.

“TEA Solutions offers a customized solution for electric utilities to provide the depth and experience we need to efficiently manage our power acquisition and delivery,” said Gabriel. “We are excited to work with an experienced and accomplished team of professionals who, along with cooperative staff, were able to manage our transition smoothly and without interruption.”

TEA Solutions will provide support for United Power’s unique energy needs, helping the cooperative meet its goals for delivering sustainable and economical power to its members.

“We are proud of our team’s hard work throughout this entire process and look forward to continuing our partnership with United Power,” said Teofilo. “We are dedicated to ensuring their success in this new market and future expanded markets while supporting their continued excellent service to their communities.”

United Power’s Board and staff were committed to finding a power solution that provides members with reliable power at more predictable prices into the future. Changes in the wholesale power market, increasing needs for flexibility in the delivery system, and growing ongoing operational costs from the cooperative’s former wholesale energy provider drove the need to seek out a change. United Power completed its withdrawal from its wholesale contract with Tri-State Generation and Transmission on May 1, 2024, with a historic funding agreement signed in April 2024.

About United Power

United Power is a member-owned, not-for-profit electric cooperative, delivering electricity to homes, farms, and businesses throughout Colorado’s northern front range. The cooperative is one of the fastest-growing electric co-ops in the nation, and in June 2021 joined the elite ranks of cooperatives serving more than 100,000 meters. The 900-square mile service territory extends from the mountains of Coal Creek and Golden Gate Canyon, along the I-25 corridor and Carbon Valley region, to the farmlands of Brighton, Hudson, and Keenesburg. United Power is also a founding member of the NextGen Cooperative Alliance, which is dedicated to expanding the power supply and procurement options available to distribution co-ops and reforming the traditional generation and transmission business model. For more information about United Power, visit www.unitedpower.com or follow the cooperative on Facebook, X, LinkedIn, YouTube, and Instagram.

About TEA Solutions

TEA Solutions provides community-owned utilities with a full suite of services to manage and maximize their wholesale energy load. TEA Solutions leverages the talent, systems, and tools of The Energy Authority which provides trading and risk management services to over 70 clients – with combined generating assets of over 25,000 MW.

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Increase to Fund Wholesale Power Contract Exit

United Power members will see a rate increase effective for usage beginning on June 1, 2024. The rate increase, which is being spread across all rate classes, is intended to offset the contract termination costs paid by the cooperative to leave its current wholesale power contract on May 1. The average household on the standard residential rate using about 850 kwh per month with a demand of 7 kW will see their bill rise from $124.82 to $136.85, an increase of $12.03.

United Power’s Board and leadership signed a historic funding agreement last month to fund the contract termination payment with the co-op’s wholesale power supplier. The agreement provided $627 million toward its exit fee, with at least $179 million of that amount for prepayment for use of the Tri-State Generation and Transmission’s transmission system. The prepayment amount will be credited back monthly with interest against United Power’s transmission bills.

“We are proud of the work that went into this effort to leave our wholesale power contract,” stated Mark A. Gabriel, President and CEO of United Power. “We envision a future with more locally produced power, more predictability in rates, and the flexibility to meet the changing needs of our members. We will have control over the largest single component of our members’ bills – their wholesale power costs. Leaving this contract gives us the ability to design the future we want.”

What is Changing?

The average residential member will see increases in both the demand charge and in the energy charge, while the fixed charge will remain the same. The demand charge will increase from $2.50 to $4.00 per kW, while the energy charge will increase from 10.39 cents per kwh to 10.57 cents. 

Residential time-of-use members will see a similar increase, with an increase in demand from $2.50 to $4.00 per kW. On-peak energy charges will drop from 16.07 cents to 15.25 cents, while off-peak energy charges will increase from 5.5 cents per kwh to 6 cents. All other rates will see similar increases.

See full menu of rate changes. 

How to Control Your Demand 

The structure of United Power’s rates provides members the ability to keep costs lower by both reducing use and controlling demand. Lowering demand is as simple as not using electric appliances at the same time. Additionally, setting timers on dryers and dishwashers so they start after the family goes to sleep moves the demand of that appliance to a lower use period and actively reduces demand costs.

Learn more about demand and how you can reduce the impact of this portion of your bill.

Members who need assistance managing their monthly bills are encouraged to contact United Power’s member services team about billing options such as Budget Billing, which provides the same predictable payment each month. The team can also provide information about assistance organizations in the co-op’s service territory that can provide counseling and resources for those having trouble paying their bill. 

The member services team can be reached during normal business hours by phone at 303-637-1300 or via online chat, located in the bottom right hand corner of the United Power website. Likewise, members may email the United Power team at memberservices@unitedpower.com.