On September 10, 1886 the plant and all the machinery burned during the disastrous fire of that date. It is significant that when the plant was rebuilt two 45 arc dynamos were installed to meet the growing demand for service, and also that during the year 15 arc lights and 4 incandescent laps were installed on the street lighting circuits and rented to the citizens.
From 1886 to 1893 no changes were made at the plant. However, on August 1, 1893, the Council contracted with the Council of North Danville (Neapolis) to move the North Danville 30 arc dynamo to the Danville plant and to operate it at an annual charge of $900.00. In 1895 a new 50 arc dynamo was added and the total street lights numbered 90 at that time. In 1896 North Danville was annexed to the city and the number of arc lights was increased to 119 on the streets with 15 arc lights and 50 incandescent lamps rented to citizens.
In 1899 the city bought the Crews and Westbrook water power lot and installed a 200 H.P. wheel which was leased out for the day and used on the street light system at night. By 1902 the load had increased beyond the capacity of the water power plant and a steam plant of 300 H.P. was built to supplement the water power. Step by step the plant was enlarged until in 1910 the capacity of the plant was 650 kW. The increasing demand and the necessity for reliable service was so great that in 1911 the city voted to issue bonds for a modern steam station. Construction was started in 1912 and the plant put in service in 1913.
In 1934 the demand for service exceeded the reliable capacity of the
plant, in that year the Citizen's Power Committee, a committee appointed
by the City Council, made an exhaustive study to locate a suitable source
of power for the city. As a result of this study the Pinnacles Hydro-Electric
Development was initiated. The city entered into a contract on October
15, 1935 with Charles T. Main, Inc., Consulting Engineers of Boston, Mass.,
for the design of the development. Thereafter the city entered into contracts
for the construction of the Power House, Townes Dam, Talbott Dam, the Transmission
Line, and other component parts of the Development. By June 5, 1938, construction
had progress to such a point that on that day the power plant was placed
in operation and power was supplied to Danville over the transmission line.
After minor adjustments the power plant was placed in commercial operation
on August 10, 1938.
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