United Power, Inc. and Xcel Energy have entered into a strategic relationship to explore maximizing the value of their combined portfolios and advancing the State of Colorado’s progress toward a low-carbon energy footprint. The utilities companies are entering a power supply arrangement that would provide United Power access to Xcel Energy’s increasingly carbon neutral portfolios. The working agreement will allow both utilities to leverage cost savings through power purchases while continuing to invest in new, clean renewable resources.
“This is a win-win for both utilities,” said Mark A. Gabriel, President and CEO of United Power in a press release. “The ability of two large utilities working toward a common goal will benefit everyone. Together we will plan our energy needs, negotiate lower pricing, and assure reliability for our members and customers. This is an important step as we enter the new future of electric procurement and delivery.”
The agreement aims to facilitate a shared strategic vision for electric power delivery. Xcel Energy seeks to leverage its renewable energy resources by making sales to United Power at times when excess energy is available, providing United Power with access to Xcel Energy’s portfolio at attractive prices.
“The electric industry is changing, and United Power is working with Xcel Energy to help lead this revolution,” said Gabriel. “Meeting federal and state requirements, keeping costs economical, and making certain our load is predicable are planned outcomes of this strategic relationship.”
The two utilities hope to develop a long-term relationship in which both will work in tandem to drive down power costs, understand how best to serve the future load of the cooperative’s members and Xcel Energy’s customers, and work toward the mutual goal of integrating more renewable energy in support of the State of Colorado’s renewable resource goals.
“Today’s announcement solidifies our close working relationship with United Power, one of the largest and fastest-growing cooperative utilities in Colorado, by supplying increasingly carbon-free energy from Xcel Energy’s generation resources,” said Robert Kenney, President of Xcel Energy-Colorado. “Our strategic relationship will maximize the value of both companies’ combined generation towards achieving our goal of reducing carbon emissions by 80% by 2030, from 2005 levels, and providing 100% carbon-free electricity by 2050.”