The plant was built entirely underground, and located about up the Connecticut River from Turners Falls Dam. A stretch of the Connecticut River, extending some north from this dam to the Vernon Dam, Vermont, serves as the station's lower reservoir. During periods of lower electrical power demand, the plant pumps water from this lower reservoir through the Northfield Mountain Tailrace Tunnel to a man-made upper reservoir. At times of high demand, water is released to flow downhill from this upper reservoir through a turbine generator, where it then collects in the lower reservoir to be stored until again pumped to the upper reservoir.