The water would change the climate as a cooling factor. As far as the electricity produced... Do you know how much electric power hover dam puts out?
( 565 million kilowatt hours per year. )
Smaller Dams pumping water
http://www.usbr.gov/lc/hooverdam/parkerdam.html
Hover Dam power out put...
http://www.howstuffworks.com/hydropower-plant.htm
More on Hover Dam
http://www.physics.umd.edu/perg/abp/aha/hoover.htm
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Hell, why not just spend the time and money in wells. There are lots of freshwater aquifers available in the desert from the judean desert to the thar desert, albeit unavailble for most to get too in areas such as that, they can still be tapped.
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Wells would not help the land to turn fertile...