Mountain Parks links with Guzman Energy

Company continues to add smaller utilities in Colorado and New Mexico

Granby-based Mountain Parks Electric has committed to a 20-year wholesale power and energy-management services contract with Denver-based Guzman Energy. The contract begins Feb. 1, 2025, when Mountain Parks leaves Tri-State Generation and Transmission.

Virginia Harman, the general manager for Mountain Parks, cited rate stability, increased flexibility for local renewable power generation, and reliability as being the priorities that caused the electrical cooperative to choose Guzman.

The cost of wholesale power has accounted for approximately 60% of Mountain Park’s nearly $40 million annual operating budget.

The cooperative serves 18,000 members through 22,000 meters spread across Grand and Jackson counties. That includes Kremmling, partially seen in the above photo.

The utility will have to pay Tri-State to break its existing contract, which requires Mountain Parks to purchase 95% of its power from Tri-State through 2050. How much Mountain Parks must pay remains uncertain pending a final ruling by the Federal Energy Regulatory Commission about exit fees.

Formed in 2015, Guzman has peeled away business from both Tri-State and Xcel Energy and picked up a few other utilities, too. The most important early coup occurred during 2016 when New Mexico’s Kit Carson Electric left Tri-State after paying $37 million with the aid of Guzman and set out to develop local solar capacity. In June 2022, it paid off that exit fee and simultaneously completed enough new solar to enable the cooperative to meet the daytime demands of its customers. See: Kit Carson Electric crosses the finish line.

Delta-Montrose Electric left Tri-State and joined Guzman in 2020. United Power will get some power from Guzman beginning in May. It also is a partial provider for Holy Cross Energy.

Guzman has also taken market share from Xcel Energy. It picked up contracts for Steamboat Springs-based Yampa Valley Electric and Grand Junction-based Grand Valley Electric beginning 2028. It is also set to begin deliveries to the Arkansas River Power Authority, which serves six municipal utilities in southeastern Colorado. This is in addition to the municipality of Fountain.

In New Mexico, it has contracts with the municipalities of Aztec, Raton, and Gallup, the Pueblo of Acoma and the Jicarilla Apache Nation Reservation.

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