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
Date: 4/29/2022
United Power filed a non-conditional Notice of Intent to Withdraw from our power supplier in compliance with a recent Federal Energy Regulatory Commission ruling. This changes our previously announced Tri-State exit date of Jan. 1, 2024 to May 1, 2024.
Reducing Costs, Leveraging Clean Resources Among Reasons for the Move
Brighton, Colorado/Washington D.C. — United Power, a rural electric cooperative based in Brighton, Colorado, today filed its Notice of Intent to withdraw from the membership of Tri-State Generation and Transmission Association at the Federal Energy Regulatory Commission (FERC) in Washington, D.C., effective January 1, 2024. The two-year notice period was accepted by FERC in an October 29, 2021 ruling.
United Power is the largest member of Tri-State and accounts for nearly 20% of the G&T’s annual revenue. United Power has unsuccessfully attempted to modify its all requirements contract with the G&T for more than three years. In the last nine months alone United Power has tendered three formal term sheets and held numerous high-level meetings, but leadership at the G&T has been unresponsive to the contract modification requests.
“Sadly, our power supplier has been ignoring our efforts to come to an amicable arrangement that better supports the needs of our members while guaranteeing that our prior commitments are met,” said Mark A. Gabriel, United Power President and Chief Executive Officer. “Instead of working with us in the pursuit of lower-cost, cleaner options, Tri-State has resisted these developments. Tri-State recently purchased additional coal generation, is limiting our members’ ability to add more carbon free generation and is penalizing additional storage on our system. They also offer non-members preferable transmission rates over those of us who have invested in the system for decades.”
United Power has been a leader in the deployment of innovative technologies and in the integration of renewable energy resources. Currently United Power has 84 megawatts of renewable generation on its system including 46 megawatts of utility scale solar, Colorado’s largest battery storage project and more than 6,800 roof top systems. Tri-State’s policies include penalties if a utility exceeds 5% of generation other than from the G&T.
There are a number of cases currently in front of FERC, Denver Courts, Adams County Courts and the U.S. Court of Appeals that will ultimately decide the exit fee for United Power. United Power joins Delta Montrose Electric Association and Kit Carson who have exited the G&T in the last five years. At least six other cooperatives are considering a potential exit.
“When I came to United Power nine months ago, I was extremely optimistic that we would be able to come to an agreement that lives up to our commitment for past investments and allows us to provide lower cost, cleaner options to our rapidly growing communities in the future,” Gabriel said. “Our decision to depart is not made lightly but follows the cooperative principles of voluntary participation and member’s economic participation by choice,” added Gabriel.
United Power will be seeking alternative power supply and the use of transmission as outlined by FERC as part of Open Access Transmission Tariffs.
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 cooperatives in the nation, and in June 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, dedicated to expanding the power supply and procurement options and reforming the traditional Generation and Transmission (G&T) business model. For more information about the cooperative, visit www.unitedpower.com or follow them on social media Facebook, Twitter, LinkedIn, YouTube and Instagram.
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Message From United Power's President & CEO
There has been much written in recent months about the dynamics between United Power and Tri-State Generation & Transmission. This has resulted in a significant amount of unneeded expense and tension between the two organizations as well as among at least seven other Tri-State members.
It is important to understand United Power’s position in this conversation:
- We need a strong Tri-State G&T, and we need a Tri-State that recognizes the issues faced across our industry and communities.
- We need a powerful transmission organization like Tri-State to assure our place as a Regional Transmission Organization (RTO) comes to the West, and as additional resources are added to our fuel mix and the grid becomes more critical and complex.
- We need our G&T to be responsive in driving down costs to help our rural economies and to support the growing membership demand for a cleaner, carbon-reduced future. And we need to make sure the exit from coal is rapidly executed while supporting the communities that will suffer in the short term from job and revenue loss.
- We need Tri-State to realize the dynamics of a changing industry mean more of our members want to generate electricity locally, to be untethered from fossil-based resources and released from the paradigm of centralized generation that is decades old. This will require a dramatic new business model, deep cost cutting and jettisoning of inefficient generation even in the face of financial hurdles.
To achieve this goal means a radical re-envisioning of the G&T model, one in which utility members can purchase as much – or as little – power as they need to support their communities; one in which Tri-State operates its grid on the basis of formalized tariffs, such as an Open Access Transmission Tariff (OATT), rather than “Hotel California” rules, where you can get in but never leave; one in which the G&T is the hub for renewable aggregation while not crippling the spokes; and one that is focused on the lowest possible costs and the needs of all its members, big and small.
It is important to be clear that the drive to remove coal from the fuel mix is only tangentially connected to regulation and political whim. It is tied 100% to the low cost of natural gas, coupled with the decreasing costs of renewable energy. This is economics, not politics. This disagreement has resulted in significant legal expenditures, tensions and burdens on staff and has not helped move the needle toward a low-cost, flexible, carbon-reduced environment.
United Power does not necessarily want to terminate its contract with Tri-State, although obtaining a reasonable price for termination would be a starting point for any analysis.
- United Power wants to continue to buy a defined amount of generation (capacity and energy) from Tri-State and has offered to do so.
- United Power wants to be an OATT customer and has offered to make this transition.
- United Power wants to buy additional energy from Tri-State at competitive prices when markets come to the West in the next 24 months.
- United Power wants to be able to buy as much energy generated in its service territory as its members want to provide. Our current Tri-State contract limits us to purchasing no more than 5% of our total power from local renewable resources.
It is illogical in a world that is moving to carbon-free resources that our members are not permitted to build and offer such resources. United Power intends to continue to be a leader in storage technology, which helps Tri-State avoid peaks and high demand, allows Tri-State to reduce its carbon footprint and smooths our transmission congestion.
In sum, United Power wants a strong, responsive and low-cost partner in Tri-State and the freedom to support our members with low-cost, clean and reliable power. Tri-State should be leading the change to a new G&T structure to address the energy needs of the future and help its member cooperatives better serve the individuals and families on their lines.
Please feel free to reach out to me if you have any questions or comments.
Brighton, CO – United Power is now a member of the GridWise Alliance, a national organization which helps foster relationships among a diverse group of industry stakeholders and advocates for public policy changes that benefit grid modernization. The group’s executive committee unanimously approved the cooperative’s membership with the organization in July.
Grid modernization is a moving target that evolves over time as new technology is developed and changes the way energy is produced and managed and how consumers use energy. It typically refers to the system of interconnected devices on a grid that improve reliability and efficiency while ensuring safety. The GridWise Alliance is a collaborate effort among members to develop industry best practices used to direct public policy supporting grid modernization by leveraging their different experiences and perspectives.
“We are a comparatively small player next to some of the larger utilities involved with the GridWise Alliance,” said Dean Hubbuck, United Power’s Chief Energy Resource Officer. “But we’re also extremely progressive. These types of organizations help us accomplish our goals and what we’re trying to achieve for our members.”
As a member, United Power will be able to contribute its unique perspective on the industry as a fast-growing cooperative serving members in suburban and rural communities northeast of Denver. In June, the Brighton-based co-op became just the 31st electric cooperative nationwide to surpass 100,000 meters and is on past to add several thousand more before the end of the year. The unprecedented growth and progressive reputation of the cooperative have earned it a seat at the table helping direct local and national policy conversations.
“United Power stands out from its cooperative peers for its commitment to grid modernization and deployment of emerging technologies,” said President and Chief Executive Officer Mark A. Gabriel. “As a member of the GridWise Alliance, we have a platform to advocate for policies beneficial to both the cooperative and its members.”
United Power joins Rappahannock as the only other electric cooperative member of the GridWise Alliance. Other prominent members include Con Edison, Dominion Energy and Duke Energy. Non-utility members also include IBM, Intel and General Electric. For more information about the GridWise Alliance, go to www.gridwise.org.
About GridWise Alliance:
The GridWise Alliance (GWA) represents the broad and diverse stakeholders that design, build, and operate the electric grid. Since 2003, the GridWise Alliance has been at the forefront of educating key industry stakeholders on the critical need to modernize our nation’s electricity system. For more information about the GridWise Alliance, visit: www.gridwise.org.
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 cooperatives in the nation, and in June 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. For more information about the cooperative, visit www.unitedpower.com or follow them on social media Facebook, Twitter, LinkedIn, YouTube and Instagram.
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