The Yelm Hydroelectric Project was commissioned in the 1920s by the City of Centralia at a cost of $995,000 and generated approximately 4 MW of power. Over the decades, the project was expanded and upgraded, now generating over 12 MW and providing 25-30% of the city's electricity, with additional power supplied by BPA. The project diverts water from the Nisqually River via a diversion dam and 9 mile canal to the powerhouse containing three turbine generators.