It forms a reservoir called Lake Shannon which stretches 7.5 miles (12.1 km) upstream.

The dam is operated by Puget Sound Energy as part of the Baker River Hydroelectric Project.

At full capacity the dam's hydroelectric plant can generate 79 megawatts of power.

[4] The other dam on this river, Upper Baker Dam, lies about 8 miles (13 km) upstream, and serves a similar purpose to Lower Baker.

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