After four years in operation, Whitefish’s hydroelectric power system is producing energy above estimates.

The system has already generated enough electricity to pay off 61 percent of the original pre-purchase loan with Flathead Electric, according to City Manager Chuck Stearns.

A $400,000 pre-payment from Flathead Electric Co-op helped fund the project, along with a $200,000 federal grant.

“The original estimate was that the loan would be paid off in a maximum of eight years and we should beat that target easily,” Stearns said. “Once the loan is paid off, the electricity generated will go to offset the electricity requirements of the water treatment plant, the wastewater treatment plant, and other electrical bills at the city.”

Flathead Electric began accepting power into their grid from the facility on Reservoir Road in September 2012.

The water for the hydro plant comes out of Haskill Creek before passing though the hydro generator at the city’s water-supply reservoir. A small 25-square-foot building houses the controls and generator.

The generator has a capacity of 200 kilowatts, enough to generate electricity to power a few hundred homes.