In addition Reclamation has a 546,750 kW share of the installed capacity of the coal-fired Navajo Steam Powerplant. Reclamation powerplants annually generate over 42 billion kilowatt hours of hydroelectric energy, enough to meet the annual residential needs of over 14 million people or the energy equivalent of over 80 million barrels of imported crude oil. Reclamation is a National leader in managing and developing hydropower and the continued stream of benefits derived from Reclamation power facilities are of vital importance to the Federal Government and National, State, and local economies. Reclamation powerplants account for 23 percent of the hydroelectric generating capacity in the Western United States. Revenues from the sale of power and energy not only pay the costs allocated to power, but also pay a variety of certain other costs such as irrigation aid and salinity control, which are assigned to power for repayment.
Federal power is marketed at the lowest possible rate consistent with sound business principles.
Reclamation is obligated to repay the capital costs within 50 years. Power revenues have provided over 10 billion dollars in project repayment to the Federal Treasury and are responsible for repayment of more than 90 percent of Reclamation project costs. Every Reclamation project includes many types of facilities that can generally be classified as power, water storage and conveyance, or joint use. Once the facilities are classified, the allocation process begins. Where facilities are used jointly by power, irrigation, and possibly other purposes such as flood control or recreation, the relative investment in each type of facility is allocated in accordance with established methods of allocation.