The MDC's Colebrook hydro project is located at the U. S. Army Corps of Engineers Colebrook River Dam and Reservoir. While flood control is the facility's primary purpose, the reservoir also is used for recreation, maintenance of Farmington river flows and, of course, hydropower.

The Colebrook hydro facility is equipped with two sets of Kaplan turbines (six in all) that look much like ship propellers. Unlike Goodwin, the turbines at Colebrook are not contained in a conventional powerhouse. Instead, they are located under water on the upstream (front) side of the dam, making Colebrook one of the most unique hydro facilities in America. When the turbines need maintenance, they can be raised from the reservoir by a large crane mounted permanently on the intake tower. Each set of turbines weighs approximately 20 tons, so they must be carefully controlled while they are lifted.

The Colebrook hydro facility operates 16 hours per day during the week, when demands for electricity are at their peak. Colebrook generates enough clean hydropower to serve nearly 1,000 homes (approximately 5,700,000 kilowatt hours annually).