STEAMBOAT SPRINGS, Colo. & DENVER–(BUSINESS WIRE)–Yampa Valley Electric Association (YVEA) today announced that it has signed a 15-year agreement with Guzman Energy to provide wholesale power to the cooperative. This agreement is expected to save YVEA members tens of millions of dollars over the 15-year term. To honor existing contracts, the transition from current wholesale provider Xcel Energy will take approximately five years.
“Our decision to transition to Guzman Energy to provide wholesale power was guided by the ‘Four Rs’ – Rates, Reliability, Renewables and Relationships,” said YVEA CEO Steve Johnson. “We have listened to our members, and this agreement powers us forward to deliver reliable and affordable electricity that incorporates more renewable sources and helps us stabilize rates.”
YVEA has faced consistent increases in wholesale costs over the past few years, including a rate hike of 14% in 2023. The agreement with Guzman Energy will stabilize member energy costs through predictable, fixed wholesale power rates. In contrast, YVEA’s current contracted rate structure fluctuates with variable market conditions with the power cost adjustment, leaving members vulnerable to spikes in dynamic pricing.
Guzman Energy will either own the generation assets used to provide power for YVEA or secure power purchase agreement commitments for energy directly from generation assets. With these resources, Guzman Energy will provide wholesale power to YVEA members safely and reliably. While Guzman Energy will be the wholesale provider of electricity, YVEA will continue to partner with Xcel Energy to deliver this power to YVEA members through the Xcel transmission system. That means YVEA’s service will remain just as reliable as it is today.
Increasing Renewable Sources
Today, 42% of YVEA’s power comes from renewable sources, including an agreement with Xcel Energy that allows the cooperative to generate 3% of its power with local renewable energy. In partnership with Guzman Energy, YVEA is on track to become 84% carbon-free by 2030, including the opportunity to meet an additional 15% of its load with power from YVEA’s contracted local renewable energy projects. Guzman Energy has a proven track record of working flexibly with cooperatives to reach renewable energy goals.
Guzman Energy has significant experience in the cooperative energy market. The company has partnered with numerous other cooperatives across North America to reduce wholesale power supply costs and keep rates stable for their members. Additionally, Guzman Energy understands and values communities like those in northwest Colorado and southern Wyoming, as exhibited by its history of being a good community partner that invests in the communities it serves.
“It’s important for local communities to have decision-making control over their electricity portfolio and to have certainty around the cost,” said Robin Lunt, Chief Commercial Officer of Guzman Energy. “Guzman Energy is proud to be part of YVEA’s solution for its membership and we look forward to our partnership.”
“All YVEA members depend on affordable power, and we have a responsibility to our members to deliver the most value,” Johnson added. “Whether you are a retired member on a fixed income, a young family with new expenses, an agriculture business with high demand or a large business with hundreds of employees, our new partnership with Guzman will help us keep your rates more stable in the future.”
For more information about this transition, visit www.poweringYVEAforward.com.
About Yampa Valley Electric Association
Yampa Valley Electric Association (YVEA) is a member-owned electric cooperative serving nearly 27,000 customers over 2,840 miles of line covering a 7,000 square-mile service territory in northwest Colorado and southern Wyoming. We provide safe, affordable, reliable power and efficient energy services to members. We help our communities thrive by striving to provide innovative, affordable and environmentally sound solutions, while fostering leadership and growth throughout our region. More information is available at www.yvea.com.
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.