Category: Guzman Energy

Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power

5/28/2019

By Joe Smyth | [email protected] | @joesmyth

Guzman Energy is proposing a deal that would help Tri-State Generation and Transmission Association meet Colorado and New Mexico's new clean energy policies, by replacing nearly half of Tri-State's remaining coal fleet with 1.2 gigawatts of new wind and solar power projects, along with a mix of energy storage and natural gas. Guzman Energy executives said that the proposal would also immediately lower costs for Tri-State, and could allow member co-ops to increase the amount of local renewable energy they can build.

“Rapidly changing economics, combined with new carbon reduction goals in states that include the majority of Tri-State’s members, mean there’s a lot at stake for those who own and are served by Tri-State," said Guzman Energy President Chris Riley in a press release. "We’ve put a proposal on the table that would help Tri-State and its members lower costs right now while simultaneously reaching compliance with new laws. We look forward to taking the proposal directly to Tri-State’s owners and facilitating an open and transparent dialogue.”

In an interview, Riley explained that the company had presented the deal to Tri-State executives, as well as to several Tri-State member co-ops. Riley said that while some member co-ops expressed support for the proposal, Tri-State executives indicated they did not plan to continue exploring the proposal until after rulemakings and implementation of the new climate legislation in Colorado and expanded renewable energy standard in New Mexico. That will likely take several months, and could increase costs as federal tax credits for wind and solar projects begin to expire. Guzman Energy executives hope instead that its proposal will be reviewed in parallel with the rulemakings, and decided to publicly announce the proposal so that it can be considered by Tri-State member co-ops and their members.

Reports examine the impacts of Tri-State's high wholesale power costs

4/27/2019

By Joe Smyth | [email protected] | @joesmyth

Two reports this month provide new details about the impacts of the high wholesale power costs that Tri-State Generation and Transmission Association charges electric cooperatives in Colorado, New Mexico, Wyoming and Nebraska.

One of the reports, “How Kit Carson Electric Engineered a Cost-Effective Coal Exit,” was published by the Institute for Energy Economics and Financial Analysis (IEEFA). It includes an overview of the history and reasons for the co-op's departure from Tri-State in 2016, such as interest in pursuing more local solar projects and frustration with Tri-State's increasing rates.

The IEEFA report also includes some key new information: the price that Kit Carson Electric Cooperative (KCEC) expects to pay for wholesale power from Guzman Energy over the next seven years.

KCEC had endured 12 rate increases from 2000-2016 under Tri-State, increases that doubled the price KCEC was paying for power from Tri-State over the full 16-year period, from $39.06/MWh to $79.17/MWh. These increases were predictable in only one sense—that they could be expected year after year. The unknown piece of the puzzle was by how much (Tri-State had unilateral discretion to change rates).

KCEC’s new power purchase agreement also sets the price bar markedly lower than Tri-State’s, which in its most recent annual report put its average 2017 wholesale rate to members at $75/MWh.

The KCEC-Guzman deal, by comparison, after setting 2017 rates at about $67/MWh, more than 10% below Tri-State’s wholesale rate to KCEC in 2016, put them even lower in 2018, at $66.66/MWh. From 2019-2022 the Guzman wholesale rate to KCEC will average about $75/MWh as the co-op pays off its exit-fee loan. After that, it plummets for the final four years to an average of about $47/MWh through 2026.

More Colorado co-ops announce clean energy goals

2/11/2019

Electric cooperatives have shifted their approach to renewable energy amid declining prices and growing public support, but wholesale power providers are key

By Joe Smyth | [email protected] | @joesmyth

Three electric cooperatives in Colorado have now set clean energy goals, reflecting co-ops' growing recognition of the opportunities presented by declining prices for renewable energy and increased public support for wind and solar power development.

The latest announcement came last week from Grand Valley Power, an electric cooperative that delivers electricity to more than 18,000 members mostly in Mesa County, Colorado. Grand Valley Power established a target of 60% clean energy by 2030, which the co-op described as "one of the most aggressive environmental targets of any electric cooperative in the nation."

In a press release, Grand Valley Power noted that the "announcement comes at a time when home- and business-owners are increasingly interested in having renewable energy and reducing carbon emissions." Grand Valley Power CEO Tom Walch said:

“With cost-effective advances in clean renewable energy technology, we’ll be able to meet this 60 percent target by 2030 while maintaining rate stability and our excellent reliability standards. This is one of the best ways we can deliver value to our consumers.”

Grand Valley Power 2018 Energy Mix, and 2030 Estimated Energy Mix, from Grand Valley Power fact sheet

Poudre Valley Electric requests Tri-State policy changes and fuel mix study

10/4/2018

By Joe Smyth | [email protected] | @joesmyth

The Poudre Valley Rural Electric Association board of directors is urging Tri-State Generation and Transmission Association to develop new policies to respond to a changing utility industry, and to study if adjusting its fuel mix could lower costs. In a resolution passed unanimously on September 19, the electric cooperative requested that Tri-State “work expeditiously in a transparent process to determine if significant cost savings are achievable by adjusting Tri-State’s fuel mix and provide the findings to Tri-State’s members by the end of calendar year 2018.”

Poudre Valley Rural Electric Association (PVREA) provides electricity to nearly 40,000 members in Larimer, Weld, and Boulder Counties, and this June was recognized as “Electric Cooperative Utility of the Year” by the Smart Electric Power Association for a community solar project that helped expand solar power opportunities for low and moderate income members.

PVREA is also Tri-State’s second largest member cooperative by electricity sales, and the resolution emphasizes PVREA’s partnership with Tri-State, noting that it helped form Tri-State and “has a vested interest in Tri-State to be successful."

Guzman Energy proposal would finance retirement of Tri-State coal plants, add 1.2 gigawatts of new wind and solar power

Reports examine the impacts of Tri-State's high wholesale power costs

More Colorado co-ops announce clean energy goals

Poudre Valley Electric requests Tri-State policy changes and fuel mix study

Recent Articles

Categories

Archives