The Economy Light and Power Company was incorporated in 1901, under the laws of Illinois, as a re-incorporation of a company of the same name that was established in July 1890. In 1906, the company again was re-incorporated after the Channahon Power Company was purchased.
The power needs for local consumers was produced by the dam near the Jackson Street bridge that helped to operate the large generators that supplied the power to the city.
In the first decade of the 20th century, the company owned a generating plant in Joliet and a substation at Lemont, having a total daily capacity of 7,000 kw.
In 1905, the Economy Light and Power Company of Joliet obtained permission from the Illinois and Michigan Canal Company to lease and build a small power dam across the Des Plaines River at Dresden Heights (Channahon).
State and local officials objected, claiming it would impede navigation on a proposed Deep Waterway that would make Chicago accessible to ocean-going vessels via the Mississippi River.
Economy Light and Power responded by bringing its own suit to seize a large tract of land surrounding the Dresden site, claiming a private business that was an essential utility provider should enjoy the right to eminent domain.
When utility mogul Samuel Insull and his Commonwealth Edison company took control of Economy Light and Power, and began construction on a new dam in 1907, the Sanitary District of Metropolitan Chicago responded by trying to halt the construction through an act in the state legislature. Local and state governments also joined in a lawsuit against Economy, and focused their argument on the navigability issue.
The Grundy County Court and the state appellate court both sided with the company. On Oct. 26, 1909, the Supreme Court of Illinois held that the title of the Economy Light & Power Company to “water powers” of the Des Plaines River was valid.
In December of the same year, the U.S. Government began suit in Federal Court against the company over the construction of the same dam at Dresden Heights. The Federal Government believed the Des Plaines River is a navigable stream, and objected to the attempt of the company to construct a dam across the river in Channahon.
On June 22, 1914, the Supreme Court ruled in favor of Economy and Insull, and the ruling was based on riparian rights arguments and the validity of the original lease.
In 1911, Samuel Insull acquired five companies and formed a new holding company, Public Service Company of Northern Illinois (Public Service). The $25 million organization game him the electricity market surrounding Chicago, including the communities of Waukegan, Evanston, Maywood, Blue Island, Oak Park, Kankakee, Streator, Ottawa, Morris, Wilmington, Crystal Lake and Joliet.
Looking east across the Des Plaines River, the then photograph shows the Jackson Street dam in the foreground and the powerhouse plant of the Economy Light and Power Company on the left. The image also shows part of the raceway and dam that carried water from the Des Plaines River to help produce power to operate the electric plant.
The power needed to run the company generators was created by the 12-foot drop in water level from the upstream headrace to the downstream tailrace. The old Jackson Street Bridge, the dam and the I&M Canal were cleared and removed in 1932, as part of the deep water Illinois Waterway Project.
The now photograph shows a similar view looking across the Des Plaines River today.