Our Vision in a Rapidly Evolving Energy Industry
The electric utility industry is undergoing a significant refocus on everything from technology to power supply. The delivery model of today will look vastly different in the next decade. Grid technology is improving, energy markets are evolving, and member demands and expectations are changing. United Power must be prepared to adapt quickly and respond proactively to shifts in an ever-changing environment. We recognize the wealth of opportunities - and challenges - that come with these changes.
Our mission as your local electric cooperative is to safely and responsibly deliver reliable electricity and excellent service to our members. To continue delivering on that promise, we must identify the range of potential futures that we need to prepare for, harness our strengths, recognize where growth and investments are required, and develop innovative approaches to proactively address challenges.
It is, therefore, critical United Power ensures all the pieces work together to optimize financial investments, operating efficiencies, and resources. The intent of our cooperative roadmap is to document organizational objectives to create an alignment from the Board of Directors to every employee and, in turn, our members.
Empower and Engage with Members and Communities
Electric cooperatives are owned by the members they serve, which means the members are not just consumers but stakeholders in the cooperative’s success.
Provide Flexible, Affordable, Responsible Power and Services
As the needs of the distribution system have increased, so has the need for United Power to evolve and optimize the supply of power and services to its members.
Continuously Optimize the Electric Distribution System
The optimization of the electric distribution system is paramount as the cooperative confronts increasing demands and complexities driven by rapid electrification, the integration of DERs, and the evolving expectations of members.
Achieve and Maintain Business Agility and Resilience
Business agility and resilience are key investments of United Power’s strategic and operational plan.
Guiding Principles
The following guiding principles were used to develop this roadmap. They are the lenses through which United Power evaluates options, particularly when there are trade-offs.
Recent Roadmap Posts
Brighton, CO - United Power, an electric cooperative based in Brighton, Colorado, is the first distribution utility in the Western Interconnection to join the Southwest Power Pool (SPP). SPP is a regional transmission organization (RTO), a nonprofit corporation mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure, and competitive wholesale electricity prices on behalf of its members.
“Since United Power is leaving our current wholesale power supplier in 2024, it is important that we seek out memberships and partnerships that will help us assure a reliable power source at the lowest cost possible,” stated Mark A. Gabriel, United Power President and CEO. “Our membership with SPP is one of the critical pieces we wanted in place as we move toward a new energy future for our members.”
SPP works as an aggregator of generation resources, dispatching the power where it is needed. The value of belonging to an RTO is multi-pronged for cooperatives like United Power. The power pool is charged with building reliability and predictability into their power marketplace and helping to reduce the risks that come with varying weather conditions. It is also committed to providing the lowest cost power available to serve its members, minute by minute.
The SPP is responsible for identifying power needs for the region it serves. Members of SPP will have an active role in determining where new transmission is built and will be able to have their interests represented directly.
“Membership matters. Our membership in SPP means we will have a meaningful say in the strategic direction of the organization,” stated Gabriel. “Members have an active role in determining how this new energy market develops and how the organization grows. We will be able to directly represent the interests of all United Power members.”
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 cooperatives 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, Twitter, LinkedIn, YouTube, and Instagram.
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United Power held a member forum on June 7 to discuss the upcoming exit from its current wholesale power contract and highlight opportunities to purchase low cost, high reliability power that is produced in an environmentally responsible manner. In April, the cooperative filed a nonconditional Notice of Intent to Withdraw from Tri-State Generation and Transmission, reaffirming its decision to leave its wholesale power supplier. The withdrawal is effective May 1, 2024.
Mark A. Gabriel, United Power’s President and Chief Executive Officer, and Dean Hubbuck, the cooperative’s Chief Energy Resources Officer, discussed the exit process, goals of the transition, and impact to members with both in person and virtual attendees. Gabriel reassured members the shift in power suppliers would not affect their status as members of the cooperative and the exit was ultimately about controlling costs and potentially lowering rates.
“We’re working diligently so that we can save money,” Gabriel said. “If we can control costs and if we can manage to get better pricing out in the market, we are able then to lower rates. I think that’s something that’s critical as a member-owned cooperative.”
Hubbuck provided a high-level overview of various steps the cooperative has taken to negotiate a fair and equitable contract termination fee through the Federal Energy Regulatory Commission, including several recent decisions in favor of United Power, and its recent request for proposal (RFP) for new power supply.
“We are expecting a healthy response to our RFP, which is due in the early part of August,” Hubbuck said. “We’ll spend about two months evaluating proposals before selecting a handful of suppliers to work with directly. We hope to select a supplier, or group of suppliers, and begin contract negotiations early next year.”
United Power has attempted to negotiate contract modifications with its wholesale power supplier, including an option for partial requirements, but has been met with resistance. The current contract no longer makes economic sense for the cooperative or its members. It limits local generation and member flexibility while rates are well above market price.
“Historically, our wholesale power contract was entered into because, at that time, our most pressing issue was to secure a reliable source of power when very few viable options were available,” said Beth Martin, United Power’s Board Chairman. “Our situation has substantially changed, with more affordable, reliable, and environmentally sustainable power supply options now available. We believe we should deliver electricity that is more reflective of the current market price, ultimately helping our members save."
More information about United Power’s contract negotiations and transition to new power suppliers is available on the Power Supply page. Members who were unable to attend the Power Supply Forum can watch it here.
FERC Rules in Favor of United Power
Brighton, Colo. — United Power, a member-owned, not-for-profit electric cooperative based in Brighton, Colorado, filed its non-conditional Notice of Intent to Withdraw from Tri-State Generation and Transmission Association, Inc. (Tri-State) with the Federal Energy Regulatory Commission (FERC) in Washington, D.C., on April 29.
The electric cooperative previously filed a similar notice of intent late last year. That notice, which included a proposed Jan. 1, 2024 departure date, was conditioned upon the assessment of a just and reasonable exit fee by FERC. With this latest action, United Power’s Board of Directors reaffirmed its decision to depart from its wholesale power supplier with a non-conditional notice.
“After careful consideration, our Board stands committed to securing more affordable, more flexible, and lower carbon power,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “We expect this will bring economic benefits and lower rates to our communities, along with greater flexibility to generate power closer to home,” he added.
The latest filing moves the cooperative’s previously announced departure date to May 1, 2024. The modification to the exit timing comes after a recent FERC ruling that required departing utilities to provide non-conditional notices. Central to FERC’s decision is that United Power and its power supplier both require certainty regarding actual departure dates and contracting obligations for power supply. The non-conditional notice of United Power’s departure will allow Tri-State to plan for its reduced supply obligation and assess the economic viability of its higher cost coal generation units.
A FERC hearing to determine a just and reasonable exit fee begins May 3 in Washington, D.C. A ruling from the presiding FERC Judge on exit fees for Tri-State’s members is expected by the end of the summer, with a final Commission decision expected in 2023. Contract disputes between United Power and its power supplier have been ongoing as the cooperative seeks a just and equitable exit fee.
United Power is one of several electric cooperatives in the Tri-State system seeking more flexibility, lower cost power, and fewer contract constraints. Two others, Kit Carson Electric Cooperative and Delta-Montrose Electric Association, have already exited, while three other cooperatives have filed to reduce their participation by 50%. Current power rates through Tri-State are 20% above market, and contract requirements permit only 5% locally sourced power. Economic benefit for its members and the ability to generate local power continue to be the primary reasons United Power seeks to leave the Tri-State membership. United Power believes its withdrawal is in the best interest of its members.
Simultaneously, United Power today issued a Request for Proposals (RFP) for wholesale electric power supply to serve a peak load of up to 600 MW and retail sales of approximately 3,000 GWh. Commitments of intent to participate in the RFP are due by May 16, with questions and clarifications due by June 13. Proposals for part one of the process are due by Aug. 8.
The complete RFP and information for interested respondents can be found at www.unitedpower.com/RFP. Questions about the RFP or selection process may be submitted to United_Power_RFP@enervision-inc.com.
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 cooperatives 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, Twitter, LinkedIn, YouTube and Instagram.
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