Ames started as a stage stop and post office, however it is mostly known as the first industrial power plant in the United States that used alternating current (AC). It was built in 1891 by Lucien Nunn, the Manager of the Gold King Mill, who wanted to find a way to reduce costs since it was expensive to transport coal to the mill. Nunn built the power plant and connected it to the mill with wires, which cost around $500 per month to run. A plaque on the highway above the mill commemorates Nikola Tesla’s contribution to the development of AC power.