When you flip on a light switch, charge your phone, or run your air conditioner, it’s easy to think of electricity as simply coming from Grand Valley Power, your electric cooperative. But behind every kilowatt-hour delivered to your home or business is a much larger energy system designed to provide reliable, affordable power.
One term you’ll hear us talk about often is wholesale power. It’s common language in the electric utility industry, but what it means — and why it should matter to you — isn’t always clear. Understanding wholesale power may help explain many of the decisions we make.
In simple terms, wholesale power is the electricity that distribution cooperatives purchase before delivering it to homes and businesses. Think of it like a grocery store. The store purchases fruits and vegetables from suppliers and then makes them available to customers. Similarly, Grand Valley Power purchases electricity at wholesale pricing and delivers it through our distribution system to the members we serve. Today, Grand Valley Power purchases its wholesale power from Xcel Energy. Beginning June 1, 2028, GVP will transition to Guzman Energy as its wholesale power supplier.
This partnership allows Grand Valley Power to focus on what we do best: maintaining and improving our local electric system and serving members. From investing in reliability and maintaining substations and power lines to managing vegetation and servicing meters, our focus is on providing the hometown service our members expect. Meanwhile, wholesale power providers focus on the complex work of generating electricity and planning the large transmission networks that move power across the state. Wholesale power providers also offer access to diverse energy resources and broad transmission networks. This diversity can improve reliability by providing multiple sources of power when weather conditions, equipment issues, or transmission outages affect a particular generation source. A larger, more flexible energy portfolio can also create opportunities to more effectively manage power costs.
Because wholesale power accounts for more than half of Grand Valley Power’s total expenses, choosing the right wholesale power partner is one of the most consequential decisions we make. Our responsibility is to be careful stewards of our members’ resources while balancing affordability, reliability, and long-term value. Those priorities were a significant factor in the board’s decision to transition to Guzman Energy in 2028.
A key benefit of the new partnership is greater price certainty. Guzman Energy will provide Grand Valley Power with fixed wholesale power rates, reducing exposure to fluctuating energy prices. That certainty will help us plan for the future and budget for infrastructure improvements, strengthen our system against wildfire risks, invest in new technologies, and continue providing reliable service through fair and transparent rates.
Looking ahead, Grand Valley Power is also exploring ways to increase flexibility in how we serve our members. As we begin working with Guzman Energy, we will have opportunities to evaluate whether local generation resources could complement the electricity we purchase at wholesale. These opportunities could further diversify our energy portfolio while advancing the cooperative’s long-term goals for reliability, affordability, and local control.
Wholesale power may not be something you think about, but it impacts every aspect of your electric service. From the rates you pay to the reliability of the grid, wholesale power influences how Grand Valley Power plans for the future and fulfills its commitment to serving you. By understanding how wholesale power works, members can better appreciate the many partnerships and strategic decisions that help keep the lights on across the Grand Valley.
By Chrystal Dean, Chief Executive Officer
