5 Shocking Ways Kit Carson Electric Is Redefining Taos’s Energy Future (The $231M Clean Power Revolution)
Kit Carson Electric Cooperative (KCEC) in Taos, New Mexico, is not just a utility provider; it is a national model for rural energy independence and technological transformation. As of late 2025, KCEC has firmly established itself as a pioneering force, successfully achieving its ambitious goal of providing 100% of its daytime power needs from local solar generation, a feat that has dramatically lowered wholesale power rates for its members. This incredible progress is now set to accelerate following a massive $231 million investment award, positioning the cooperative at the forefront of the clean energy transition in the American West and cementing its commitment to the Taos, Colfax, and Rio Arriba Counties it serves.
The story of KCEC is one of bold independence, driven by a desire to provide affordable, reliable, and sustainable services to its member-owners. Since breaking away from its former wholesale power supplier, Tri-State Generation, the cooperative has pursued a multi-faceted strategy encompassing solar power, battery storage, and fiber optic internet expansion. This strategy, spearheaded by long-time CEO Luis A. Reyes Jr., has not only stabilized energy costs but has also brought essential modern infrastructure to Northern New Mexico's most remote communities, ensuring the region’s economic vitality for generations to come.
The Architect of Independence: Luis A. Reyes Jr. and the KCEC Transformation
The dramatic shift in Kit Carson Electric Cooperative’s trajectory is inextricably linked to its long-serving leadership and a pivotal decision made nearly a decade ago. The cooperative’s move from a traditional power model to a clean energy leader is a case study in member-driven innovation.
Biography of KCEC CEO Luis A. Reyes Jr.
- Full Name: Luis A. Reyes Jr.
- Title: Chief Executive Officer and General Manager, Kit Carson Electric Cooperative (KCEC).
- Tenure as CEO: Since 1993.
- Early Career: Began working with KCEC in 1984 as a System Engineer.
- Education: Graduated from Taos High School and earned an Associate of Arts in Electrical Engineering.
- Native Roots: A native Taoseño, he has deep ties to the Taos County community.
- National Role: Serves as Chairman and Director of the National Rural Telecommunications Cooperative (NRTC).
- Pivotal Decision: Led the cooperative’s historic exit from its contract with Tri-State Generation to partner with Guzman Energy in 2016, a move that allowed KCEC to aggressively pursue its renewable energy goals.
The Breakup with Tri-State and the Rise of Guzman Energy
For years, KCEC was constrained by a restrictive wholesale power contract with Tri-State Generation and Transmission Association, which capped locally-generated renewable energy at a mere 5%. This limitation prevented the cooperative from capitalizing on Northern New Mexico's abundant solar resources and forced members to pay higher rates. In a landmark decision, KCEC, under Reyes’s leadership, negotiated an exit from the contract and partnered with Guzman Energy, a wholesale power provider, in 2016.
This strategic move was immediately beneficial. The new power purchase agreement with Guzman Energy resulted in an immediate 15% drop in the annual wholesale rate, saving members money and allowing KCEC to accelerate its solar power initiatives. This transition was the essential catalyst for the cooperative’s current success as a leader in clean energy and a blueprint for other rural electric cooperatives seeking energy independence.
5 Key Pillars of Kit Carson Electric’s Current and Future Success
KCEC’s current operations and future plans are built on five interconnected areas of investment, all designed to enhance service reliability, reduce costs, and improve the quality of life for its members across its service territory.
1. Achieving 100% Daytime Solar Power (The Clean Energy Benchmark)
The cornerstone of KCEC’s success is its achievement of generating 100% of its member’s daytime power needs from local solar arrays. This milestone was celebrated in partnership with Guzman Energy and is a direct result of an aggressive buildout of solar infrastructure across Taos, Colfax, and Rio Arriba Counties. KCEC currently owns and operates 18 solar arrays, totaling over 18.6 MW of power, with key projects including the Taos Mesa Solar Array and the Taos Charter School Community Solar project.
This achievement is not just symbolic; it translates directly into lower power costs and greater energy security for the region. By generating power locally, KCEC minimizes costly transmission losses and insulates its members from the price volatility of fossil fuels, fulfilling the vision of local generation saving money.
2. The $231 Million Renewable Energy Expansion (104 MW of New Power)
Looking ahead, the commitment to clean power is set to skyrocket. In January 2025, Kit Carson Electric Cooperative was awarded a monumental $231 million for the construction of 104 MW of new renewable energy. This massive investment will dramatically increase KCEC’s generation capacity and is part of a plan to move toward a 24/7 renewable energy future, not just a daytime one. This funding is crucial for developing the next phase of utility-scale solar projects and integrating advanced energy storage solutions.
3. The Critical Role of Battery Storage and Green Hydrogen
To support its 100% daytime solar goal and the new 104 MW expansion, KCEC is making significant advancements in energy storage. Recent projects, such as the Amalia II Solar project, are making steady progress and include pairing solar power with battery storage. One major project is set to deliver 8.75 megawatts (MW) of solar power paired with an equal 8.75 MW of battery storage, which is vital for providing reliable power after sundown and during peak demand. Furthermore, KCEC is actively involved in discussions and innovations surrounding the use of green hydrogen, positioning the cooperative to leverage cutting-edge technology for long-duration energy storage.
4. The Fiber Optic Broadband Revolution
KCEC's commitment to its members extends beyond electricity. Recognizing that reliable, high-speed internet is essential for modern life, the cooperative has heavily invested in fiber optic broadband service under the name Kit Carson Internet. This massive infrastructure project is transforming the economy of Northern New Mexico by connecting previously underserved rural areas.
The expansion has been fueled by major federal grants, including an $18 million grant from the FCC's Rural Digital Opportunity Fund (RDOF) and a $24 million grant from the U.S. Department of Agriculture (USDA) Rural Utilities Service. These funds are enabling KCEC to bring state-of-the-art fiber internet to homes and businesses, closing the digital divide and supporting telehealth, remote work, and education across Taos, Colfax, and Rio Arriba Counties.
5. Safety and Wildfire Mitigation Efforts
Operating in the rugged terrain of Northern New Mexico requires a strong focus on system resilience and safety. Kit Carson Electric Cooperative is continuously making significant advancements in wildfire mitigation and overall system safety. These efforts include vegetation management, infrastructure hardening, and proactive maintenance to protect the electric grid from environmental threats, ensuring continuous service to its members and protecting the natural beauty of the Taos region.
What This Means for Taos and Northern New Mexico
The multifaceted transformation led by Kit Carson Electric Cooperative is creating an economic and environmental ripple effect across the region. By achieving 100% daytime solar power and securing hundreds of millions in funding for future renewable projects, KCEC is providing its members with some of the lowest power rates compared to other former Tri-State member co-ops. The cooperative’s transparent approach to rates and tariffs, including a clear comparison between approved and present rates, underscores its commitment to member benefit.
The dual focus on clean energy and fiber optic internet expansion is a powerful engine for rural economic development. KCEC is not just a utility; it is a catalyst for technology adoption, a champion of environmental stewardship, and a model for how a member-owned cooperative can successfully navigate the complexities of the 21st-century energy market, all while keeping the Taos community at the heart of its mission.
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