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Benton PUD was organized by a local vote of the people in 1934. On September 12, 1946 it became an operating utility and assumed operation of the electrical distribution system from Pacific Power and Light serving 3,754 customers. Benton PUD now serves over 45,000 customers in Kennewick, Finley, Benton City, Prosser, and outlining areas.

During Benton PUD's first year of operation, manager John Whitehead, also managed the Benton REA. At that time Benton PUD's main office was in Prosser and the Kennewick office was in downtown Kennewick on Kennewick Avenue. On November 20, 1947, Mr. Whitehead resigned because the REA Management Division recommended dissolution of joint management and operation of Benton REA and Benton PUD. In the spring of 1955, Benton PUD moved to new headquarters at 524 S. Auburn in Kennewick.

In 1957 Manager Owen Hurd left Benton PUD to become the first managing director of the Washington Public Power Supply System (WPPSS), now called Energy Northwest.

In January 1994, Benton PUD moved its Kennewick headquarters to its present location of 2721 W. 10th Avenue.  The Prosser office opened a new facility in 2007 at 250 N. Gap Road.

Benton PUD purchases the majority of its power from the Bonneville Power Administration.  Over 85% of the power is from clean, renewable hydropower.

Benton PUD is recognized throughout the Northwest for its progressive attitude and capable employees.