In 2000, thermoelectric power plants accounted for 39 percent of total U.S. freshwater withdrawals. Traditionally, power plants have withdrawn water from rivers and other water sources to cool the steam used to produce electricity, so that it may be reused to produce more electricity. Some of this water is consumed, and some is discharged back to a water source. In the context of growing demands for both water and electricity, this report discusses: (1) approaches to reduce freshwater use by power plants and their drawbacks; (2) states' consideration of water use when reviewing proposals to build power plants; and (3) the usefulness of federal water data to experts and state regulators. Includes recommendations. Charts and tables.