Yellowknife (Nov 01/04) - Premier Joe Handley says it's "decision time" for hydroelectric development in the South Slave.

Whether it's the GNWT-backed expansion of Taltson River's existing power plant, or a project by Lutsel K'e First Nation (LKFN) and its partner, Regional Power Ltd. -- one of two proposals has to move ahead soon, Handley said,

"The only real problem right now is not knowing whether Lutsel K'e and their partners have a project," he said.

The Taltson project will not go ahead if the other one proceeds, Handley says, because the Regional project is closer to the prime market -- the NWT's diamond mines.

However, if the competing proposal "diddles around" for a couple of years, it will make both projects less feasible, he cautioned, explaining each month's delay cuts into the amount of power that can be sold to the mines, which have a limited life span.

It is time for a decision to be made, LKFN Chief Archie Catholique said.

He added that Regional Power Ltd. will report to Lutsel K'e in another month or so, whether or not the company is willing to go ahead.

"We're still talking about the project we want to put together with Regional Power," he said.

Premier Handley, as the minister responsible for the NWT Power Corporation, questioned whether LKFN and Regional Power even have a viable project unless they develop the Lockhart River.

The Lockhart is the only river in the area with consistent water flow, he noted, adding development of the Lockhart is opposed by Lutsel K'e elders.

Catholique says the LKFN/Regional Power idea does not involve the Lockhart.

Possible sites for the project are the Snowdrift or Hoarfrost rivers; and Pike's Portage, a creek running out of Artillery Lake.

"We're not going to touch the Lockhart," the chief promised.

Expenditures halted

A couple of weeks ago, Handley halted expenditures on the Taltson proposal.

"What I've done is put things on hold until April," he said. "We're not going to spend any more money on it for the time being."

So far, the GNWT and the NWT Energy Corporation have spent more than $1 million. It will take another $2 million to determine if the $300-million project is viable.

The Taltson expansion was proposed by the NWT Energy Corporation, the Akaitcho Territory Government and the Metis Energy Corporation Ltd.