FORT SMITH - A delegation from two large southern companies mulling over building an 1,800-megawatt hydroelectric project on the Slave River was in Fort Smith recently.

The officials from ATCO Power and Trans-Canada Corporation held separate meetings with the Town of Fort Smith, Salt River First Nation, the Fort Smith Metis Council and Smith's Landing First Nation on Feb. 21.

Mayor Peter Martselos: hydroelectric development on Slave River would have big impact on Fort Smith. - NNSL file photo

Mayor Peter Martselos said the idea is still in the very early stages with construction a dozen years away, if it ever happens.

"We can't say we support it or don't support it, when we don't know what would be taking place," Martselos said.

However, he is optimistic the project could proceed with no back-up of water or diminishment of water flow, and no damage to the rapids and pelican colony.

"The information I received from them is very positive," he said, noting technology has changed since the idea was last proposed 25 years ago.

The project just upstream from Fort Smith on the Alberta side of the border would create about 1,500 construction jobs and 30-75 full-time jobs.

"It would have a big impact in our community," Martselos said. "It would really give a boost to our economy." The mayor said he understands the project could be completed without a dam.

However, that is not the understanding of Ken Hudson, president of the Fort Smith Metis Council, who said a dam is being considered.

"At this point, they don't know what kind of dam they're going to build," Hudson said.

The Metis leader has other concerns about the project, saying water levels in the river have been low over the past few years.

"The Slave River has been at the lowest point it's ever been at," he said.

The low water is partly blamed on upstream industrial use in the Mackenzie River basin, including by oil sands development.

Claudio Perrella, manager of communications with Trans-Canada Power, said the process is in the pre-feasibility study stage.

"We want to take this one step at a time," he said.

Perrella said no decision has been made on whether there will be a dam on the river.

"For sure, there will be a physical structure of some sort," he said, adding that might be a run-of-the-river installation.

"Nothing has been decided," he said, noting the companies are in the process of listening to community concerns.