Agreement reduces the reliance on coal and adds incremental renewables to the grid without increasing cost
GLENWOOD SPRINGS, Colo. — Tues., Jan. 8, 2019 — Holy Cross Energy (HCE), a nonprofit rural electric cooperative based in Western Colorado, announced today a renewable energy swap agreement with Colorado wholesale energy company Guzman Energy. This two-way power purchase agreement (PPA) will enable the development of a new 100-megawatt (MW) wind farm to serve HCE’s members. Once the new wind resources enter service in 2021, the PPA will fulfill HCE’s commitment to clean energy and greenhouse gas reduction goals as outlined in its seventy70thirty plan earlier this year.
“With today’s announcement HCE continues to lead the responsible transition to a clean energy future, while maintaining affordable and reliable electricity to our members,” said Bryan Hannegan, President and CEO of HCE.
“Our new partnership with Guzman Energy will raise the amount of renewable energy in our power supply mix to almost 70 percent by 2021 – nine years earlier than promised. We are gratified that our agreement with Guzman Energy will also allow them to increase the amount of renewable energy in their power mix.”
Additionally, Guzman Energy will utilize, as necessary, HCE’s stake in Unit 3 of the Comanche Generating Station in Pueblo, Colo., a 750MW coal-fired generating unit. This resource will supplement the 250MWs of renewable energy that will be built as part of Guzman’s recent renewable RFP, and all resources will be used to serve Guzman’s wholesale customers in New Mexico and Colorado and together will result in a capacity mix that is approximately 75 percent renewable.
“This deal allows HCE to meet their renewable energy goals without increasing cost, adds more renewables to the grid in the West, and supplements Guzman’s overall resource mix with reliable baseload, as needed,” said Jeff Heit, managing director with Guzman Energy. “It’s another example of what can be accomplished if stakeholders work together to find innovative ways to transition to the new energy economy.”
Founded in 1939, Holy Cross Energy is a non-profit rural electric cooperative that provides safe, reliable, affordable and sustainable energy and services that improve the quality of life for more than 43,000 members and their communities in Western Colorado. We are committed to leading the responsible transition to a clean energy future. For more information on HCE and our future objectives, please visit https://www.holycross.com/seventy70thirty/.
About Guzman Energy
Guzman Energy is a wholesale power provider that supplies and trades power across North America. Guzman Energy created a new type of energy model, one designed specifically to help transition an outdated energy economy into the renewable age. We enable customers — principally rural electric cooperatives and municipal power companies — to achieve lower rates and price-stability from renewable, sustainable energy. Headquartered in Denver, Colo., Guzman Energy has unique expertise in serving customers in the bilateral power markets of the Western United States and conducts its business through two practice areas: Energy & Environmental Trading and Energy Hedging & Risk Management. To learn more, visit www.GuzmanEnergy.com.