The reservoir (not reservior! ) of a dam is the higher part of the river. It is blocked by the dam so that the dam can control when to let go of the water to produce electricity.
The picture is the penstock for Ohakuri Dam in New Zealand. The penstock is the tube that allows water to flow to the turbine in the powerhouse.
The powerhouse is where the electrical energy is produced. It contains the turbine and the generator. The turbine spins when water flows through, and the generator produces electricity from the spinning motion of the turbine. Then some powerlines take the electricity and plug it into the transformer.