The next step was construction by the Manchester Light and Power Company of a plant on the west bank of the Battenkill south of Union Street bridge. This was nearly completed May 23, 1901 with a promise of lights by June 10, but the first light did not go on until September 28. It was at the end of the sidewalk in front of the Dellwood Cemetery cottage.

The first directors of the Manchester Light and Power Company were John Marsden, M. L. Manley, William F. Orvis, George Smith, and John Blackmer. The officers were John Marsden, president; John C. Blackmer, vice-president; George Smith, treasurer; and William F. Orvis, secretary. Marsden was manager of the company for ten years and manager of its successor company, the Colonial Light and Power Company, for one year.

At about the time the Marsden enterprise was getting under way, the Vail Light and Lumber Company started construction of a chair stock factory on the site of the present Bennington Co-operative Creamery, intending to use its surplus power for generating electricity. Manchester then had two competing power companies until 1904, when the Manchester Light and Power Company purchased the transmission system of the Vail Company. This was fortunate, as the Vail plant burned in 1905.

The Colonial Light and Power Company was succeeded by the Vermont Hydro-Electric Corporation, which in turn was absorbed by the Central Vermont Public Service Corporation. The latter now furnishes the area with electricity distributed from a modern sub-station at Manchester Depot which was put into operation February 19, 1930 and was improved in January 1942 by the installation of larger transformers.