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RPS Agreements and the Future

By Marty Mayfield

KRTN Multi-Media

 

During the special joint meeting Tuesday evening with the Raton City Commission and Raton Public Service Board of Directors, they approved the transfer of assignment to Guzman Energy LLC and postponed a decision on an agreement with Twin Eagle Resources Management, LLC.

With the transfer of assignment to Guzman Energy retroactive to February 8, 2019, Guzman took over the Raton portion of the agreement with Twin Eagle. Meaning that Guzman now purchases power from Twin Eagle and RPS will purchase power from Guzman.

Commissioners also requested that attorneys start talks with Twin Eagle to resolve issues that they have with RPS and once those issues are remedied the commission and RPS can then approve the sale of the RPS, Twin Eagle agreement to Excel Energy which the RPS board hopes will be within the next month or so. Should the issues not be resolved Twin Eagle could then take RPS into litigation.

The agreement with Twin Eagle is set to expire in about five years so you ask why is Guzman in the mix now? According to Bloomberg, Guzman Energy LLC operates as a multifaceted energy service provider, specializing in the purchase and sale of electric power, natural gas, and range of environmental products and services. The company markets to utilities, retail providers and large end users. Guzman Energy operates in the United States with offices in Florida and Colorado. Kathy McQuery, RPS Board President, told KRTN that Guzman is in for the future.

Guzman Energy has put out a request for 200 megawatts of wind power and 50 megawatts of solar power. Guzman web page says “This is a significant expansion of our commitment to help facilitate the transition of the energy landscape in the West to a more sustainable and competitive future,” said Jeffrey Heit, Guzman’s Head of Origination. “The renewable resources will be used to serve Guzman’s loads throughout the West, primarily in Colorado and New Mexico.”

Guzman is requesting at least 100 megawatts of wind power be in commercial production by July 1, 2021 and has obtained a $200 million capital commitment to help facilitate implementing the additional renewable energy. Will Raton be able to benefit from this in some way, only time will tell.

Coming up February 27 at the regular RPS board meeting there will be a presentation on solar power, specifically a presentation about a solar project near Aguilar Colorado. The project is expected to produce 35 megawatts of power at peak and cover 66 acres of land. Completion of phase 1 is planned for January 2019.

A small group of Raton residents met last week to start a grass roots movement to encourage RPS to move toward renewable energy. As the contract with Twin Eagle nears an end where will RPS shop for a new agreement and what will it include as far as renewable energy. Could it also include a solar farm south of Raton?

 

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