HomeMy WebLinkAbout20020197.tiff 1NIT- p UNITED POWER, INC.
�0 � P.O. Box 929, Brighton, CO 80601 • Telephone:303-659-0551 • 1-800-468-8809
Fax:303-659-2172 • http://www.unitedpower.com
January 10, 2002
Mr. Glenn Vaad
Weld County Commissioner
915 10th Street
Greeley, CO 80632
Dear Mr.Vaad:
United Power values our partnership with your county so we wanted to personally contact you regarding a
rate adjustment, which will go into effect next month. Effective in February 2002 all United Power
customers will see an increase in the rates they pay for electricity. The increase will help to cover the
cooperative's increase in the cost of wholesale power, and to cover the ever growing costs of operating
our business — including materials, labor costs and siting of new facilities. The rate changes were
approved at the December 2001 board meeting, but most customers won't see the increase on their
statements until their February billing.
About two-thirds of the increase is due to more expensive wholesale power rates. Tri-State Generation
and Transmission, our power supplier, announced an increase of more than 10% in the cost of the power.
Tri-State G & T has been working hard to react to a more volatile marketplace in terms of pricing, while
maintaining their outstanding record of power availability. This increase will help them provide us with a
reliable source of electricity in the coming years. United's corresponding adjustment will raise our
revenue approximately 8.8 percent. However, individual accounts will vary somewhat from this figure.
As you know, the cost of doing business is climbing. Costs for equipment, labor, and siting new facilities
has climbed dramatically in the last 10 years. The cost to acquire land for substations, the easements to
place facilities and the resulting legal costs when there are problems with a site add to our costs of doing
business. Uncontrollable employee costs, such as the growing cost of medical insurance and workers
compensation, even the growing cost of items like trucks, heavy equipment, materials, and insurance are
forcing up the cost of doing business. While we were able to absorb these costs in the past through
innovative cost cutting programs, the increases expected in 2002 can no longer be readily absorbed.
Ultimately, we understand that your concern rests with how this will affect your citizens. With the new
rates,the average residential customer will realize an increase of under$7.00 a month.
Rest assured that no matter what direction the marketplace takes in the future, United Power remains
committed to providing quality service at reasonable rates. If you have any questions about the rate
change, or the exact effect on your accounts, please contact Dick Bussing, Troy Whitmore or me at 303-
659-0551.
Sincerely,
UNITED POWER, INC.
Robert Broderick h,eta3
General Manager
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