Energy
Jul 24, 2026

Colorado River hydropower declines as drought strains Western power system

Lower water levels reduce electricity generation as utilities face rising demand


July 24, 2026

Colorado's only share of the federal Colorado River Storage Project is expected to generate nearly 30% less electricity than its historical average this year as declining water levels reduce hydropower production, according to reporting from Colorado Newsline. The Wayne N. Aspinall Unit, which includes Blue Mesa, Morrow Point and Crystal dams on the Gunnison River, supplies power to municipalities, cooperatives, tribes and irrigation districts across the West. The Blue Mesa Reservoir will end the year at about 17% of its live storage capacity.

The decline comes as electricity demand grows, driven in part by new data centers, according to the Colorado Newsline reporting. The Western Area Power Administration has increasingly relied on more expensive replacement power as hydropower generation falls. Colorado Newsline also reported that some tribal utilities, including La Plata Electric Association, continue to receive hydropower allocations tied to the Southern Ute Indian Tribe, though the cooperative said its diversified power portfolio limits its exposure to rising hydropower costs.

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