How Will Guzman and Dakota Energy Deliver Electricity to Your Home?

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The executives and board of directors at Dakota Energy are trying to obtain a buyout number to exit their contract with East River Electric Power Cooperative to purchase energy off the spot market through Guzman Energy.

If Dakota were to leave our cooperative family to instead purchase energy from Guzman there would be a lot of uncertainty about the future power supply members receive. Buying energy is only the first step in an intricate journey that is currently managed by Basin Electric Power Cooperative and East River Electric Power Cooperative. After electricity is generated, it then has to be transferred to your home. Unfortunately, Guzman Energy is only an energy broker. They don’t own any generating units and they also don’t own any of the electric infrastructure that is required to get electricity from a generation unit to your home. They buy energy off the spot market. That’s it.

Once electricity has been generated, it travels over high-voltage transmission lines to substations, where the voltage is reduced to a lower level. The electricity then travels over distribution power lines and the voltage is reduced again to safely find its way into your home. In our cooperative network, East River Electric owns and maintains the substations and transmission power lines that carry electricity from generation units to their member systems, including Dakota Energy. When severe weather strikes, East River’s local crews in South Dakota and Minnesota are at the ready to quickly make repairs and restore power to the grid.

What is included in the whole sale price being quoted by Guzman Energy? And what is being left out?

Generating and distributing power is an intricate business and involves a lot more than purchasing electricity. East River Electric will always meet the necessary demand to provide safe, reliable and affordable electricity to the region’s consumers.

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