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The Total Value of Hydropower

Technical Working Group April 23, 2018

S. Clayton Palmer

CRSP
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Non Market Value of Hydropower 

and Developed Water Project

• Initiated in 2012 to be included the DOI EIS on the 

operation of Glen Canyon Dam

• Reclamation’s The Principles and Guidelines (P&Gs) 

states: 

• “The conceptual basis for evaluating the benefits from [a 

water project’s] water supply is society's willingness to 

pay for the increase in the value of goods and services 

attributable to the water supply”

• The scope of evaluations for benefits and costs of 

federal decisions is the national view 

• Economic – not financial – analyses are required

The Total Value of Hydropower – TWG, April 23, 2018 2
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Research Completed

• WAPA partnered with 

• University of Oklahoma Center for Energy, Environment 

and Society (CESS)

• Sandia National Laboratory

• Reports/Analysis prepared:

• Market and Non-Market Values of Water Resources and Non- Market Values of Hydropower Associated With Glen Canyon 

Dam: A Theoretical Framework and Literature Review, 2015

• Estimating Non-Use Values for Alternative Operations of the 

Glen Canyon Dam: An Inclusive Value Approach, 2016

• Measuring Non-Market Values for Hydropower Production 

and Water Storage on the Colorado River, 2017

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Scientific Conclusions

The scientific evidence indicates: 

• A meaningful proportion of survey respondents place a 

positive value on less restrictive hydropower operations 

at GCD

This implies that: 

• A non market value exists for hydropower at Glen 

Canyon Dam

• The total economic value of hydropower includes a non 

market component

• GCD hydropower has dimensions of value beyond its 

value as a source of electricity

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Study Limitations

• The reports by Loomis & Sandia focused on the theory 

and concepts of non market values and hydropower

• The quantitative work by CESS scientists focused on 

application of these concepts to explore the 

dimensions of value associated with modifying GCD 

operations

• The scope of the research did not include the 

quantification of non market hydropower values for the 

wide array of information needs of the GCD AMP as 

related to hydropower values

• The evaluation was limited to the proposed change in GCD 

operations to the preferred alternative of the LTEMP EIS

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Additional Research is Needed

• A broader-scoped scientific effort might provide a 

“template” for applying new research to practical 

applications and to assist decision makers 

• A proposed GCD operational experiment should 

attempt to quantify the change in total value of 

hydropower 

• This would be extremely helpful for evaluating proposed GCD 

experiments

• This broader-scoped science may also be adaptable to 

assist stakeholders, water project managers and 

decision makers working in other water and 

hydropower systems

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