We use a three-dimensional nonhydrostatic unstructured-grid code to simulate internal tides within Monterey Bay. The predicted water surface, barotropic and baroclinic velocities, and internal tides in the greater coastal region agree with observations. The agreement is due to the use of a high-resolution mesh, alongshore prescription of the barotropic M2 tidal velocities, and specification of initial conditions consistent with field data. Results of depth-integrated, M2-period-averaged energy flux and energy flux divergence are presented in order to identify locations of significant internal wave generation and dissipation. Based on the results, there is a domain-wide power surplus of +52 MW due to internal tides that is available for pelagic mixing, yet isolated bathymetric features, such as Monterey Submarine Canyon and Smooth Ridge, are net dissipative, with dissipation rates of -8.3 and -1.5 MW, respectively.