Evaluations of the hydroelectric potential of the Rutherford Creek site have evolved over the years. In the early 1990s, pre-development studies were conducted by a local engineering consulting firm, which established that a smaller-scale facility on Rutherford Creek would have a potential production of 15 MW. Follow-up studies undertaken by Cloudworks, a private developer of energy projects in British Columbia, amended the site's potential capacity to 34 MW.
In 2001, Cloudworks obtained construction permits for a 42 MW hydroelectric development, and entered into a contract with BC Hydro for long-term electricity purchase.
In the spring of 2002, Innergex II entered into an agreement with Rutherford Creek Power Limited (Cloudworks), becoming a funding partner, and providing assistance and expertise for the project's engineering and management components.
Innergex II subsequently created a working group along with engineering firm Knight Piésold and contractor Kiewit, which considerably advanced the engineering on the project, and increased the facility's installed capacity to 49.9 MW.
Construction began in August 2002, with the agreement of surrounding communities, including First Nations (Mount Currie Band). The work took place over a period of 21 months, generating about $7 million in economic benefits for the region. The commissioning of the first group of turbines took place on May 31, 2004. Then, in August 2005, the installation of a second group of turbines was completed, enabling the facility to reach its optimal production capacity.
In September 2005, Innergex Power Income Fund announced that it was interested in purchasing the power plant, and on December 15, 2005, the agreement between Innergex Power and Innergex II was formalized.