MONTROSE, Colo.--(BUSINESS WIRE)--Delta-Montrose Electric Association (DMEA) announced today it has completed the transition with its new energy partner, Guzman Energy, a Denver-based wholesale power supplier. The partnership was formalized in April, and the new power supply was officially transitioned today. The 12.5-year partnership agreement will provide millions of dollars in power cost savings, as well as added cost stability for DMEA and its members.
To celebrate the beginning of the partnership and a new era of affordable, reliable, and clean energy for the community, Guzman Energy invited DMEA members and local residents to enjoy complimentary coffee and bagels to-go at Backstreet Bagel in Montrose this morning. More than 100 members stopped by to enjoy the event and celebrate “the switch.”
“This partnership will make a significant impact on our local community, in the form of price stability, increased local generation, and local economic development,” said Jasen Bronec, DMEA’s Chief Executive Officer. “We expect to save millions of dollars over the next 12 years. In fact, we have no plans to increase energy rates for our members through 2021, thanks to this beneficial agreement.”
Guzman Energy paid the $62.5 million exit fee to Tri-State Generation and Transmission to assume DMEA’s power supply contract. Guzman is now providing power to DMEA at a more competitive rate. Over the life of the contract, DMEA will also have the flexibility to develop local renewable energy sources to make up as much as 20% of the cooperative’s power supply. DMEA’s ability to generate local energy was previously capped at just five percent of its supply.
Guzman and DMEA will immediately kick off a new, large-scale joint initiative to develop at least 10MW of local renewable generation. This project is a great step toward both organizations’ goal of supplying DMEA with at least 40% renewable energy. Both organizations are excited to announce that the renewable mix will continue to increase over time.
“Local associations, like DMEA, are leading the nation in driving a cleaner, more sustainable energy future by exiting the agreements that limit their ability to innovate and better serve their members,” said Robin Lunt, Chief Strategy Officer of Guzman Energy. “We are proud to see this partnership come to fruition and look forward to helping DMEA with this transformative solution.”
Guzman has helped multiple energy cooperatives and municipalities exit their agreements with large-scale generation and transmission companies and move to a more stable, renewable energy mix that benefits their members and local communities.
About Delta-Montrose Electric Association
Delta-Montrose Electric Association is a member-owned and locally controlled rural electric cooperative, incorporated in 1938. Located in Southwest Colorado, DMEA energizes and serves 28,000 members in Montrose, Delta and Gunnison counties. DMEA is a progressive and forward-thinking electrical distribution cooperative. To learn more, visit www.dmea.com.
About Guzman Energy
Guzman Energy is a full-service wholesale power provider focused on providing market-based solutions to address our customers’ energy challenges by delivering reliable, clean and affordable power. We work closely with communities to identify their initial and ongoing energy goals and customize solutions based on increased economic competitiveness and sustainability. Our platform is leading a transformation from the legacy energy economy to the renewable and distributed age. To learn more, visit www.guzmanenergy.com.