I wonder why existing hydro isn't utilized to it's potential. For instance, the Grand Coulee Dam has the highest capacity of any power station in the US of almost 7 MW but usually puts out about a third of that.
Lake Powell behind Glen Canyon Dam is currently at 23.6% of capacity. Lake Mead behind Hoover Dam is currently at 29.7% of capacity.
Given the current state of the Upper Colorado River basin snow pack, there is a not-insignificant chance that Lake Powell will recede below a minimum power generating level by the end of this year for the first time ever.
It turns out that "releasing immense amounts of water downstream" can have side effects.
Looking at the data for lake that goes through the dam, it seems like they keep it at the same level. So it probably CAN make 7MW with more flow, but generally only flows at a state that puts out 2.
Limited water resource. In recent drought years, gas-fired power plants in California had to make up for reduced hydro generation.
Vogtle is probably producing the most electricity out of any generating plant in the US once you consider capacity factor.
They are used as dispatchable sources. Capture value by being able to provide enormous amounts of power when needed compared to the watershed flow.
Niagra falls doesn't run at full capacity because it takes away from the attraction of the falls themselves, and tourism is important there. They turn up capacity after hours, and the falls slow down.