Yellowknife (May 01/06) - Hydro power could be an essential part of the NWT's energy strategy for the future, according to Premier Joe Handley.

Premier Joe Handley: "Mining companies still need huge amounts of power, especially if they go underground."

He sees the potential to sell clean hydroelectric power to mining companies that are using expensive diesel-generated juice.

"Mining companies still need huge amounts of power, especially if they go underground," he said.

Within the next six month Handley is expecting a decision on a proposed 500-km power line linking the Taltson Twin Georges dam to the diamond mines.

"The numbers work now," he said. "They didn't when you could buy diesel for 40 cents to 50 cents, but now we're paying closer to a dollar."

The Taltson river dam isn't the only hydro project that is being talked about in the NWT.

A number of organizations are working together to turn the Great Bear River's St. Charles Rapids between Deline and Tulita into the territories' next great powerhouse.

The Deline Land Corp., the Tulita Yamouria Secretariat and Sahdae Energy want to provide hydro to the Sahtu and the Mackenzie Gas Project.

"Initially, what we're looking at is supplying power to the pipeline project," said Leroy Andre, project manager of hydro for the Deline Land Corp.

The project could generate 124 megawatts of power and has a $600 million price tag, he said.

Imperial Oil has said in the past that natural gas-powered compressors would be used in the pipeline, however, spokesperson Hart Searle said using hydro is possible.

"There is potential for application of hydro after the initial facilities are constructed," said Searle.

While providing power to companies may be an end goal, Andre said it will be up to the communities of Tulita and Deline to decide if they want hydro power.

"People are concerned about the impact. We have to make sure we have some guidance," said Andre.

A number of presentations and workshops and are being carried out to inform people about the pros and cons of a hydro dam.

The Sahtu region would enjoy significantly reduced power rates if the dam moves forward, and that appeals to Seymour Jacobs, manager of the Great Bear Co-op in Deline.

"If it was cheaper, I'm sure we would be interested," he said.