Photo: Grand Valley Power Chief Executive Officer Tom Walch poses in front of generator at Grand Valley Power on Feb. 13.
Grand Valley Power, a rural electric cooperative in Mesa County, Colorado, has made a major shift by choosing to end its longstanding relationship with Xcel Energy and instead contract with Guzman Energy for wholesale electricity starting in 2028. Motivated by rising and unpredictable power costs from Xcel—especially after events like the 2021 Texas freeze—Grand Valley Power sought more stability, cost savings, and flexibility. Guzman offered a 15-year fixed-rate contract, promising more predictable pricing and support for local renewable projects, such as the Garnet Mesa solar installation. This move follows a trend among Colorado co-ops, including Delta-Montrose Electric Association, which previously left traditional power suppliers like Tri-State to work with Guzman and have since reported cost savings and stable rates.
Founded by Cuban-American entrepreneur Leo Guzman, Guzman Energy has quickly built a reputation for offering innovative power solutions to smaller, often rural communities. While Guzman does not own generation facilities outright, it secures long-term rights to wind and solar energy through strategic contracts, enabling it to supply renewable power competitively. Despite concerns about the growing demand for electricity from data centers and the limitations of Colorado’s transmission grid, Guzman is expanding its generation partnerships and prides itself on responsiveness and customer collaboration. Grand Valley Power’s leadership acknowledges the risks of switching but believes the potential benefits—financial and operational—outweigh those of remaining with Xcel.
