Embracing the Wind
TCEC hedges against volatile energy prices with new power purchase agreement
Providing affordable electricity to its member owners is one of the corner stones of TCEC.
Last year, TCEC chose Golden Spread Electric Cooperative as its sole power supplier. That agreement included a provision for TCEC to enter into a renewable power purchase agreement managed by Golden Spread.
Embracing the Wind
TCEC has signed a long-term power purchase agreement with wind farm project, called Diamond Vista, for 84 megawatts of power and renewable energy credits.
“TCEC is always looking for ways to meet rising demand and control rates for our members,” said Zac Perkins, chief executive officer for TCEC. “This agreement with the Diamond Vista wind project is an innovative way to achieve those goals and an added benefit to our membership.”
Diamond Vista is an approximately 300-megawatt project located in the counties of Marion and Dickinson in Kansas. It is expected to enter service by the end of 2018. Enel Green Power North America (EGPNA) acquired the Diamond Vista wind project from its long-term strategic partner Tradewind Energy. EGPNA owns the project, is constructing it and will be the project’s long-term operator.
TCEC, through Golden Spread Electric Cooperative, buys power from a market. A physical transmission line from the project to TCEC’s members is not necessary.
Wind has long been a significant part of the mix of energy served to members of TCEC. However, the base load of electricity generation for the cooperative is natural gas.
While the arrangement is complex, the outcome is that TCEC has hedged against the volatility of natural gas fuel prices which drives market prices for electricity generation. About 30 percent of the total energy purchased by TCEC from Golden Spread will be further hedged from volatility in fossil fuel prices as a result.
“We anticipate a savings from 10 to 20 percent annually on our wholesale energy costs over the term of the contract,” said Perkins. “Savings realized from this agreement will be passed onto the members’ monthly bills in the Power Cost Adjustment line item.”
Looking out for you
At TCEC, your local board of trustees and leadership team is working to keep your electricity safe, reliable and affordable. The Diamond Vista power purchase agreement helps to achieve this.
Visit www.tcec.coop or call 580.652.2418 for more information.
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Photo Cutline: A TCEC lineman climbs a pole near a wind farm in the cooperative’s service territory. Photo by James Pratt Photography.