Energy and water systems are intrinsically interconnected. Due to an increase in climate variability and extreme weather events, interdependency between these two systems has been recently intensified resulting significant impacts on both systems and energy output. To address this challenge, an Integrated Water-Energy Systems Assessment Framework (IWESAF) is being developed to integrate multiple existing or developed models from various sectors. In this presentation, we are focusing on recent improvement in model development of thermoelectric power plant water use simulator, power grid operation and cost optimization model, and model integration that facilitate interaction among water and electricity generation under extreme climate events. A process based thermoelectric power water use simulator includes heat-balance, climate, and cooling system modules that account for power plant characteristics, fuel types, and cooling technology. The model is validated with more than 800 power plants of fossil-fired, nuclear and gas-turbine power plants with different cooling systems. The power grid operation and cost optimization model was implemented for a selected regional in the Midwest. The case study will be demonstrated to evaluate the sensitivity and resilience of thermoelectricity generation and power grid under various climate and hydrologic extremes and potential economic consequences.