The City's Bureau of Hydroelectric Power was established in 1979 to supervise the construction and administer the ongoing operation of the Portland Hydroelectric Project (PHP) located in the Bull Run Watershed. Construction was completed and commercial generation began in early 1982. Under the original 35-year Power Sales Agreement, Portland General Electric (PGE) agreed to purchase all power generated by the PHP and took responsibility for PHP facility maintenance, operations, and repair . In 2017, the City and PGE entered into a new agreement. PGE continues to purchase all power generated by the PHP, but operation, maintenance, and repair of PHP facilities, as well as scheduling and dispatching power from the PHP, became the responsibility of the PHP and are now covered by additional new contracts.
Since 1989, the Bureau of Hydroelectric Power has reported directly to the Portland Water Bureau. In the City's budget system, the finances of the PHP are kept separate from the rest of the Water Bureau. Proceeds from the sale of power generated by the PHP pay for the City’s costs associated with the PHP, and any remaining profits are distributed to the City’s General Fund.