OURAY – Ouray Mayor Bob Risch revealed efforts to expand the city’s hydroelectric capabilities at Monday’s city council meeting that could reduce energy bills and educate school children.

Risch said the city has applied for a grant from the Governor’s Energy Office for about $20,000 to use water from the old Biota water line to generate electricity near the city-owned Ouray Hot Springs pool.

Discussions had been held about ways to take advantage of Ouray’s ample water supply, Risch said, and consideration had been given to using city water that comes down from the mountains.

But the idea for using the former water bottling plant line came from Eric Jacobson, owner of the Ouray Hydro Electric Plant and Bridal Veil Falls Generator Plant in Telluride. Jacobson has offered to donate an electric generator and turbine to the city, Risch said.

The Ouray pool is a huge user of electricity, Risch said, and putting a small hydroelectric plant nearby could save money by using “net metering,” or deducting the energy generated from the city’s bill.

The energy generated, about 20,000 kW, is not great, but would reduce what the city has to pay to San Miguel Power Association.

“Anyway we can save energy is good,” Risch said.

Risch said he expects to hear about the grant in about six weeks. If the plan goes through, Risch said it would be a good opportunity to educate school children about energy sources and hydroelectric generation.

“It could be a demonstration project, maybe with a glass window and meters on how much is saved,” he said.

There’s also a possibility the city could get more hydro electric power from treated waste water being put back into the river, he said.

If the plan goes ahead, it won’t be the first hydroelectric plant in Ouray. The Ouray Hydro Electric Plant, which dates back to the 1880s, and is one of the oldest operating power plants in the world. Jacobson’s Bridal Veil Falls plant is the second-oldest alternating current generator in the country and provides Telluride with about 25 percent of its electricity.