Construction on the Puntledge Powerhouse began in 1911 by contractor Grant Smith and Company and was supervised by hydraulic engineer H.K. Owens. The plant was operational in August 1913 with its two 6,000 horsepower turbines producing 4,000 kilowatts of power.

The power generated was used to replace outdated steam plants that powered Nos. 4, 5, 6 and 7 mines. Substations for the new system were built at Nos. 4, 5 and 7 mines and at Union Bay. Excess hydro-electric power was sold to Courtenay, Cumberland, Royston, Union Bay and surrounding area for the next 30 years.

After WWII, the population in the Comox Valley increased, which meant that the Puntledge Power System and its 25-cycle power was insufficient for the needs of the area. Communities switched over to the 60-cycle power from the new John Hart complex in Campbell River. Only the mines, offices, machine shops and staff houses remained on the old Puntledge system.

After the Puntledge power complex was sold to B.C. Power Commission in May of 1953, one 25-cycle generator was kept operational to service Union Bay machine shops and Tsable River Mine. It was operational until 1966, when Tsable River Mine was finally shut down.