The Palestine Electric Company was founded in 1923 by Pinhas Rutenberg, who was granted two concessions by the Mandatory government - one for the Jordan River and the other for the Yarkon River - to exploit water sources for irrigation and production of electric power. The company's main power station at Naharayim, where the Jordan and Yarmouk rivers meet, was completed in 1930 and supplied electricity for all of Palestine. During the War of Independence, the Jordanians destroyed the plant. With the establishment of the state, the company, renamed the Israel Electric Corporation, became a state-owned enterprise. New power plants were built in several locations and production of electricity increased manifold.
Sources: Israeli Foreign Ministry