The electric utility operation of Freeport, a privately financed entity, originated as a department of the Grand Bahama Port Authority Limited (GBPA), the founders of Freeport in 1956. For the first seven years, the operations were intermingled with the other activities of the Port Authority in developing Freeport. In the early 60s, however, it was apparent that Freeport was growing rapidly and a separated company was formed to handle power generation, transmission and distribution. This company, Freeport Power Company, was formed in 1964, with 12 employees.

The first generation plant was at Cedar Street and consisted of two small diesel generators. This was the sole generation plant until 1963, when three more diesel units were installed at Peel Street, and was the start of the current generation base.