Fort Smith (Mar 06/06) - A large southern company is looking into harnessing the hydroelectric potential of the Slave River.

However, TransCanada Corporation stresses it's nothing more than an idea right now.

If development at the NWT/Alberta border ever does become reality, it would likely have significant impacts on the environment and the Fort Smith economy.

One Fort Smith leader, Chief Jim Schaefer of Salt River First Nation (SRFN), says the impacts would be "monstrous."

Mayor Peter Martselos and council wants to hear more about the idea. "Our position is wait and see what's going to happen, if anything."

However, Martselos says any development would have to mean economic benefits for the town and protection of the environment.

The development would be on the Alberta side of the border, just upstream from Fort Smith where the river tumbles through a series of rapids.

A TransCanada spokesperson says the company has not made any formal proposal.

"We have an interest in the project, but we are at the very, very early stage," says Jennifer Varey, the company's senior communications specialist in Calgary.

According to a briefing note Alberta Environment sent to members of the Mackenzie River Basin Board, the run-of-the-river project would generate 1,800 megawatts of electricity and may require two transmission lines to the Fort McMurray area.

The idea of a Slave River hydroelectric dam was looked at in 1984, but was abandoned.

At the time, the project raised concerns about wildlife and effects on the Peace/Athabasca Delta and Wood Buffalo National Park.

Judy McLinton, a spokesperson for the NWT Department of Environment and Natural Resources, says the GNWT has not been contacted about the project.

Jacques Van Pelt, a well-known Fort Smith environmentalist, is not worried about TransCanada's interest.

"These proposals are nothing new," he says.

Previous studies showed the project to be unattractive, with serious problems involving transmission lines, financing, the environment and aboriginal rights, he notes.

Smith's Landing First Nation has reserve land along the river in northern Alberta, but Chief Jerry Paulette could not be reached for comment.

Van Pelt believes people are more aware these days of the potential hazards of such projects.

Chief Schaefer says the project would be a double-edged sword.

"We need that type of power, but what's it going to do to our environment?" he says."It's pretty hard to make an official stand until they tell us what they're going to do," says Schaefer.