Quoting from the first Colorado Breeding Bird Atlas:
Bailey & Niedrach did not regard the breeding of this species as documented adequately, and discounted the nineteenth century reports of freeing. During the [first] Atlas, however, ducks of this specie summered in Englewood for several years. In 1996, on 29 April, Cat Anderson observed a female with five ducklings swimming on a pond next to the Highline Canal. The next winter, as she cleaned a next box at the pond, she found four eggs--two of Wood duck and two of Hooded Merganser. These two observations at last verify breeding by Hooded Mergansers in Colorado.
Hugh Kingery