Xcel Energy partners with United to provide low-carbon, renewable electricity
Colorado’s Xcel Energy will combine efforts with electric cooperative United Power to provide low-carbon, renewable electricity for its members in the North, the two companies announced.
United Power and Xcel signed into a strategic partnership to combine efforts to expand a carbon-neutral portfolio meant to provide value to their customers.
“This is a win-win for both utilities,” Mark A. Gabriel, United Power president and CEO, said in a Sept. 14 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.”
United Power’s agreement with its current wholesale power supplier expires in May, so the electric cooperative continues securing various power generation contracts. According to officials, Xcel Energy will sell renewable energy to United Power at a discount price when excess energy is available.
The agreement lets the utilities move into a long-term partnership meant to drive down power costs and expand renewable energy offerings to both United Power and Xcel Energy customers. It’s specifically meant to match the State of Colorado’s goals for renewable energy, according to officials.
“The electric industry is changing, and United Power is working with Xcel Energy to help lead this revolution,” Gabriel said. “Meeting federal and state requirements, keeping costs economical, and making certain our load is predictable are planned outcomes of this strategic relationship.”
United Power Electric Cooperative services the northern front range, and Xcel Energy is the United States’ largest investor utilities company. United Power services more than 110,000 meters and operates and maintains 6,500 miles of distribution lines. Its service territory covers 900 square miles north and west that borders Denver International Airport.
“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.”