From the Mountain Town News (Allen Best):
In 1909, President William Howard Taft arrived in Montrose on a train to dedicate one of the federal government’s first reclamation projects. With aid of federal funds, a 5.8-mile tunnel was bored from the Black Canyon of the Gunnison River to divert water onto the fertile fields of the Uncompahgre Valley.
Even when the portly president (he weighed 340 pounds and once overflowed a bathtub), there was talk in Montrose about harnessing the power of fast-moving water to produce electricity. Emerging from the Bureau of Reclamation’s tunnel from April through October, the time of irrigation, the water churns with great power as it tumbles toward the 80,000 acres of irrigation around the towns of Montrose and Delta.
At long last, electrical production began last year. The first small hydroelectric plant began generation in June 2013 and the second two months later. Both were developed by Delta-Montrose Electrical Association. Together, the two units can produce 7.5 megawatts of electricity.
Two more are now being built, both by a private company called Shavano Falls Hydro. They are expected to be completed in spring of 2015 and produce a maximum 7.6 megawatts.
The four units altogether will produce 15.1 megawatts.
Delta-Montrose will sell the power to co-op members, while Shavano will sell the power to Municipal Energy Agency of Nebraska. Among others, MEAN sells energy to the municipalities of Delta and Aspen.
Jim Heneghan, renewable electricity engineer for Delta-Montrose, says the return on investment is 11 years. However, a better way of calculating the investment may be that it produces electricity for 3 cents per kilowatt hour more cheaply than the power delivered by wholesale supplier Tri-State Generation and Transmission.
Both these figures are without a rate increase in the wholesale price. Coal-fired electricity has been rising rapidly in cost, however. The water will be essentially free and the turbines should last at least 50 years before they need to be retooled.
More hydroelectric/hydropower coverage here.