The hydro plant – the utilities’ fourth – will have the capacity to generate 850 kilowatts of electricity and help the company to comply with the state’s renewable energy standards.

Colorado's utilities must provide 3% of retail energy sales from renewable sources through 2010. The RES increases to 10% beginning in 2015.

"It is very important to develop renewable energy sources, and we are excited to get this project off of the ground," Utilities Jerry Forte said.

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