Enhancing Hoover Dam’s Infrastructure and Energy Reliability

WASHINGTON - The Bureau of Reclamation is investing approximately $52 million from the Hoover Dam Post Retirement Benefit fund in critical infrastructure, operations, and maintenance at Hoover Dam, including replacement of up to three older turbines with wide-head turbines designed to operate at lower lake elevations. This determination comes at a pivotal moment as prolonged drought and declining Lake Mead elevations continue to affect hydropower generation that supports people and industry throughout the American Southwest.

"This action ensures Hoover Dam remains a cornerstone of American energy production for decades to come," said Assistant Secretary for Water and Science Andrea Travnicek. "By investing in critical infrastructure upgrades and advanced wide-head turbine technology, we are increasing the dam's resilience to drought, protecting reliable hydropower generation for communities across the Southwest, and delivering on President Trump's commitment to strengthen America's energy security through modernized infrastructure and responsible resource management."

Reclamation's proactive review of the fund, which was previously unavailable for operational use, resulted in confirmation that these dollars can now be directed to essential Hoover Dam operation and maintenance projects. The funding will play a crucial role in strengthening the facility's reliability and supporting long-term hydropower production for customers in Nevada, Arizona and California.

"Unlocking these funds allows us to move forward with critical upgrades at one of the nation's most important hydropower facilities," said Acting Commissioner Scott Cameron. "We look forward to working with the Lower Colorado River Basin power customers on this needed upgrade."

The approximately $52 million is coming from the Post Retirement Benefit Fund, which was collected by the Western Area Power Administration from power customers to pay for unfunded retirement benefit costs for Hoover employees. After the fund was established, the employees began receiving benefits under the Federal Employees Retirement System or Civil Service Retirement System. As a result, the Post Retirement Benefit fund was not needed for this purpose.

Since it is impossible to use the funds for pension purposes, the funds may now be used for other purposes consistent with the authorization such as operation and maintenance. A notable portion of the newly available funding will be used to purchase and replace up to three older turbines with wide-head turbines, which are designed to operate effectively at lake elevations below 1035'. These turbines are expected to restore at least 160 megawatts of hydropower capacity and will help mitigate impacts caused by the ongoing drought.

Recent technical assessments show that older turbines are expected to sustain severe cavitation damage below Lake Mead's elevation of 1,035 feet, significantly reducing generation capability. Updated operational data indicated that at 1,035 feet, Hoover Dam's capacity could drop from earlier estimates of 1,302 megawatts to just 382 megawatts. Wide-head turbines, however, can continue operating to elevations near 950 feet without excessive damage, extending the dam's ability to generate power even under critically low reservoir conditions.

"Hoover Dam's power customers and Reclamation have worked collaboratively for decades," Cameron added. "We will continue that partnership as we prioritize how the remaining Post Retirement Benefits funds can best support Hoover Dam's infrastructure and operations."

As one of the nation's largest hydropower facilities, Hoover Dam historically has delivered up to 2,074 megawatts of hydropower capacity - supplying electricity to roughly 1.3 million people across the Southwest. Due to the unprecedented drought, generation has decreased by about 30%. Without intervention, additional declines would risk the facility's long-term financial viability and could place added pressure on customer rates.

The use of the Post Retirement Benefit funds will help address these challenges, advance crucial infrastructure improvements, and support Hoover Dam's continued role as a crucial part of the region's energy system.

Reclamation will continue to coordinate closely with power customers, external partners, and regional stakeholders as the project planning and prioritization move forward.