Colorado River Hydropower Production Drops Nearly 30% Amid Drought

The Wayne N. Aspinall Unit, Colorado’s sole stake in the federal Colorado River Storage Project, is expected to generate almost 30% less electricity than its historical average dating back to 1978. Blue Mesa Reservoir, the largest lake entirely within Colorado, is projected to end the year at only about 17% of its live storage capacity, reducing the unit’s generating capacity by roughly 18% below its design level. The system, which supplies about 3% of Colorado’s electricity, is facing higher‑cost replacements for the lost hydro power, contributing to residential electricity price increases of more than 7% and prompting Xcel Energy to seek rate hikes that could exceed 50% by decade’s end. At the same time, the western United States is preparing for a surge in demand from artificial‑intelligence data centers, leading the Federal Energy Regulatory Commission to order faster transmission connections for these large users. Officials warn that continued water declines could push reservoirs like Glen Canyon below the minimum level needed for turbine operation, threatening further power losses.