United Power, Guzman Energy reach wholesale power pact

BRIGHTON – United Power Inc., an electric cooperative serving Colorado’s northern Front Range, and Guzman Energy, a Denver-based wholesale power provider, on Wednesday announced the signing of a 15-year contract to deliver wholesale power to the cooperative.

The power supply agreement features fixed wholesale power pricing that provides the cooperative predictable and stable power supply costs. Under the agreement, Guzman will deliver approximately one-third of the cooperative’s power needs, beginning next May.

“As we move forward with our plan to diversify our power portfolio, this contract is an important part of our strategy,” said Mark A. Gabriel, president and CEO of United Power, in a prepared statement. “Guzman has an excellent track record of providing economical resources for cooperatives, and their commitment to integrating renewables will help us control costs while still keeping our eye on environmental impacts.”

United Power’s planned exit from its current power contract will take place May 1, 2024. The move was motivated by a desire to stabilize power costs and provide greater flexibility to the cooperative and its members.

“Wholesale power continues to be United Power’s largest expense, accounting for over 70% of our costs,” said Gabriel. “Having more predictable power purchase costs will offer many benefits to United Power members today and into the future.”

United Power serves nearly 110,000 meters and maintains and operates more than 6,500 miles of distribution line. The 900-square mile service territory wraps around the north and west borders of Denver International Airport. It includes the Carbon Valley, Brighton, Hudson, Keenesburg, the north and northeast metropolitan development corridors along Interstates 25 and 76, U.S. Highway 85, and E-470 and the Golden Gate and Coal Creek canyons. As a result of its geographic location, United Power’s system is experiencing significant demand and energy growth, averaging approximately 6% annually.

This article was first published by BizWest, an independent news organization, and is published under a license agreement. © 2023 BizWest Media LLC.

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