Basalt, Holy Cross finalize deal for micro-hydro plant
October 17, 2010
BASALT – Holy Cross Energy is providing Basalt with a $180,000 interest-free loan to help finance construction of a small hydroelectric plant in the hills above the town, under terms of a deal approved last week.
Basalt will repay the loan by using proceeds of selling power back to Holy Cross. The energy company will purchase the first 6 million kilowatt hours produced by the small generating facility. The town will sell the power for 5 cents per kilowatt hour. Holy Cross will retain 3 cents per kilowatt hour and apply it toward repayment of the loan; the remaining 2 cents will be paid to the town.
The facility will generate power from the Basalt and Lucksinger springs, which the town already taps for domestic water supply. The hydroelectric facility will take advantage of the drop of the water from the springs to town infrastructure.
The facility is expected to be operating within one year.