The Corps first became involved in hydropower in 1909. Since then, it has become the nation's largest producer of hydropower, developing more than 70 hydroelectric plants capable of generating almost 20 million kilowatts a year.

The Vicksburg District first became involved in hydroelectric generation in 1950 with the construction of Narrows Dam on Lake Greeson in Arkansas. It was the fifth Corps power plant in the nation, and started with only two generating units. A third unit was added later. Blakely Mountain Dam on Lake Ouachita became the second district power plant in 1956, and DeGray Dam became the third in 1972. In recent years, the three plants have produced up to 360 million kilowatt hours of electricity, enough to supply the needs of almost 40,000 homes. The power produced represents about 577,000 barrels of oil or 144,000 tons of coal.

The Vicksburg District acts only as a source of electric power, not a distributor. Any power surplus to the needs of the project is marketed by the U.S. Department of Energy, Southwest Power Administration.. Narrows' electricity is sold to Southwestern Electric Power Company. DeGray and Blakely furnish power to Entergy Corporation. Power companies usually hold the lakes in reserve to supplement other electricity sources during peak use periods.