When constructed, each of the Treadwell Mine’s four mines and five mills ran seasonally by direct waterpower from the Treadwell Ditch, using Pelton water wheels. Eventually, each mine built its own power plant that provided energy in the winter when streams were low – allowing the mines and mills to run year-round. The plants burned coal to generate steam in water tube-boilers. Steam was also piped throughout the community to provide heat for residential and support facilities.
In November 1906, J.S. Boyle of San Francisco began building Southeast Alaska’s first large oil-fired plant at Treadwell. Three riveted steel plate 30,000-barrel tanks, and two smaller day-tanks of 10,000 barrels each were initially installed in 1907, capable of storing 110,000 barrels of crude oil. Two additional tanks were eventually added bringing total storage to 180,000 barrels. The mines burned 700 barrels of oil per day to produce steam in 35 boilers. Annual consumption totaled 200,000 barrels. The plant provided a 6-month supply of oil, enough to operate all machinery, the locomotives and the machine shops.
The first oil tanker arrived in Treadwell in May 1907. A 1913 map of the Treadwell Complex shows one very large “Receiving Tank” at the southernmost Ready Bullion Wharf: three 30,000-barrel tanks adjacent to the Ready Bullion Mill, the Mexican mill and at the top of the main Treadwell Wharf. The map also shows three 10,000-barrel “day tanks” near the 240 Hoist, the Central Steam Plant, and the 700 Foot Central Hoist (this tank collapsed during the 1917 cave in). The tanks were painted bright red to prevent rusting and all of the tanks throughout the four-mine complex were connected by pipes. The conversion from coal to oil cut the cost of energy in half during the winter months. Coal was still used for domestic purposes. Two steel tanks were also used to store water for use in the mills and for firefighting.