Kit Carson Electric, Guzman Energy secure 15-year contract extension

Estimate savings between $150-170M over life of agreement

Kit Carson Electric Cooperative and Guzman Energy announced this Monday (Jan. 9) the extension of their wholesale power supply agreement through June 30, 2041. The partnership is expected to save Kit Carson $150-170 million over the course of the contract.

Based out of Denver, Colorado, Guzman Energy is a wholesale power provider “dedicated to communities in search of affordable and reliable energy,” according the company’s website. Taos’ local electric cooperative partnered with Guzman Energy in 2016.

That past August, Kit Carson exited its contract with its previous power provider, Tri-State Generation and Transmission, after making a final payment on a $37-million-dollar deal it reached with Tri-State, also in 2016.

Luis Reyes, KCEC’s CEO, previously said he wanted to transition to a power provider whose vision aligned with his own goals of generating more sustainable energy. He also stated that Tri-State had raised its rates 10 times in 12 years, whereas Guzman is expected to provide steadier rates.

“Established in 2016, the Guzman Energy partnership with KCEC provides KCEC with fixed wholesale power rates delivering savings and member rate stability,” reads a press release announcing the contract extension with Guzman. “The existing contract has also enabled local decisionmaking for KCEC to expand local solar power generation and storage operations as they reach their goal of generating 100% summer daytime solar energy.”

The press release states an estimated 60 percent of Kit Carson’s retail power load will be provided through renewable energy sources. The new partnership also helped Kit Carson deliver on its goal of completing 41-megawatts of distributed solar energy sources, along with 15 megawatts of accompanying battery storage last year. Kit Carson’s Taos Mesa solar array went online in June and was expected to save customers as much as 25 percent monthly on their energy bill starting last fall.

“The value that Guzman Energy provides our membership goes beyond cost savings. They have been consistent supporters of our community and share the KCEC Board vision to develop modern, resilient and locally managed renewable energy assets,” Reyes said. “Guzman Energy is a true partner for energy transition strategy and execution, helping KCEC become one of the cleanest, most cost-effective power distribution cooperatives in America.”

Founded in 1944, Kit Carson is one of 16 electric cooperatives serving rural areas in New Mexico and is the second-largest in the state. Beyond Taos, it also provides energy to Colfax and Rio Arriba counties.