New partnership to deliver contracted wholesale power prices and greater flexibility for development of local energy generation projects
Mountain Parks Electric (MPE) has entered into a power sales agreement (PSA) with Guzman Energy to provide wholesale power and energy management services to the northern Colorado based electric cooperative.
The total requirements contract includes the total energy and capacity needed to meet MPE’s power needs. The 20-year agreement is expected to stabilize wholesale power costs for the non-profit member-owned cooperative by providing contracted prices for the duration of the PSA. Power services from Guzman Energy commence on February 1, 2025.
“Mountain Parks Electric is excited to announce this new partnership with Guzman Energy, which will deliver on the priorities set forth by the MPE board when they began exploration of power supply options a few years ago – rate stability, increased flexibility for local renewable power generation, and reliability,” said MPE General Manager Virginia Harman.
Key aspects of the PSA include:
- Contracted wholesale power rates. The agreement with Guzman Energy will stabilize energy costs through contracted wholesale power rates over the contract term. Historically, the cost of wholesale power has been MPE’s single biggest line-item expense, accounting for approximately 60% of its nearly $40 million annual operating budget.
- Flexibility to develop local community renewable power generation assets. The PSA with Guzman Energy includes flexibility for MPE to add new local renewable energy generation projects that were previously limited to 5% of generation needs.
- Maintaining Reliability. Delivery of power to member owners and other MPE-provided services will not change.
“Providing local communities with the ability to stabilize their cost of power is an important aspect of managing the broader energy transition that’s underway,” said Robin Lunt, Chief Commercial Officer of Guzman Energy. “Working with MPE, we saw an opportunity to create wholesale price certainty for the cooperative while offering the community greater decision-making control over their electricity portfolio. Guzman Energy is proud to be MPE’s comprehensive energy partner.”
About Mountain Park Electric
Mountain Parks Electric, Inc. (MPE) is a member-owned electric utility cooperative. Established in 1946 in Walden, Colorado, MPE has been headquartered in Granby since 1953 with a service center in Walden. MPE serves approximately 18,000 members through more than 22,000 meters across approximately 4,000 square miles of Rocky Mountain terrain, including all of Grand and Jackson counties, as well as parts of Larimer, Routt and Summit counties.
About Guzman Energy
Guzman Energy is a wholesale power provider dedicated to communities in search of affordable and reliable energy. We partner with cooperatives, municipalities, companies and tribes across North America to customize energy portfolios that make economic and environmental sense for today and tomorrow. Together, we are lighting the way forward. To learn more, visit www.GuzmanEnergy.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240229643611/en/
Contacts
MPE
Aaron Street
astreet@mpei.com
Guzman Energy
Regan Petersen
regan@fitzgeraldpetersen.com
