FORT SMITH - It is still a proposal, but a significant step has been taken towards eventually expanding the Taltson River hydroelectric project.

The hydroelectric facility on the Taltson River would be expanded under a proposal from Deze Energy Corporation. - photo courtesy of Deze Energy Corporation

In early May, Deze Energy Corporation applied to the Mackenzie Valley Land and Water Board (MVLWB) for permits to expand the Taltson hydroelectric station, located about 50 kilometres northeast of Fort Smith.

"It's significant in that we feel we have enough information to provide to the stakeholders," said Dan Grabke, managing director of Deze Energy Corporation.

Grabke said the process will allow interested parties to provide feedback on the proposal, including 690 kilometres of transmission line to the NWT diamond mines.

"We're at the point where we think we have a viable project," he said.

Grabke said there will be no additional flooding and the project will basically mean the addition of two turbines at the existing Twin Gorges generating site.

The proposal is to expand the site from its current maximum of 18 megawatts to 54 megawatts.

The estimated cost of the project is more than $300 million.

The Taltson expansion is a business venture of Deze Energy Corporation, which is owned equally by the Akaitcho Energy Corporation Ltd., the Metis Energy Company and the NWT Energy Corporation (03) Ltd.

Vern Jones, the president of the Northwest Territory Metis Nation, said the project will be significant for his organization, which owns one-third of the project.

"It's a ways down the road, but we're looking forward to the point when we can go ahead with it," Jones said.

Deze Energy's submission to the MVLWB is a continuation of over three years of study, evaluation and information sessions.

A decision from the board is expected within two years.

Currently, power from the Taltson is used in the South Slave communities of Fort Smith, Fort Resolution and Hay River.

"They'd get first rights to the power," Grabke said, adding whatever remains would be sold elsewhere.

The hydroelectric site was built in the 1960s to provide power to the former Pine Point Mine.

Grabke noted the expanded project would reduce greenhouse gas emissions in the NWT by 15 per cent.

That reduction would be caused by the diamond mines using less diesel-generated power and fewer trucks carrying fuel to the mines over winter roads.

No agreement has yet been reached with Lutsel K'e First Nation about transmission lines across its traditional territory.