SOMBA K'E/YELLOWKNIFE - Something needs to be done at the Bluefish hydro dam site, and soon, senior Northwest Territories Power Corporation officials told city councillors Monday.

Ideally, Power Corp. would like to build a new dam downstream of the current location rather than continuing the extensive repairs the existing dam requires, said Judy Goucher, Power Corp.'s chief financial officer, who made a presentation to city council on the proposed project.

"We need to do something at Bluefish one way or another" or NTPC won't have power at the site at all, she said.

If that happens, Power Corp. will be forced to rely on the Jackfish Lake diesel facility, which acts as a back-up to the Bluefish and the Snare River hydro systems. Bluefish and Snare both provide hydro power to Yellowknife, Dettah and Behchoko.

"Doing nothing is not really an option," said Goucher. "Ultimately, this is a 60-year-plus dam and it needs some work done."

The current dam is located at Bluefish Lake, which sits on the Yellowknife River. It was built between 1939 and 1942 for mine use and has undergone several major upgrades and repairs over the years, the latest a $1.1 million upgrade by Power Corp. in 2007.

However, "the existing dam is at the end of its useful life and requires replacement," said Goucher.

The corporation's concern is if the current dam fails costs to build a new dam will soar.

Instead, Power Corp. would like to start construction on the new dam while continuing to operate the current one. That way, it will be able to supply power from the site during, and after, construction.

The project would need to pass environmental regulations under Power Corp.'s current water license with the Mackenzie Valley Land and Water Board before it can start.

If given the go-ahead, Power Corp. expects the new dam will be completed by 2012. Construction costs are expected to reach up to $18.5 million.

Long-term costs could be much more if the new dam is not completed, warned Goucher. If the new dam is not given approval, the corporation will need to add more diesel capacity to the Jackfish system.

Which means building a new dam is the better way to go economically, added Robert Schmidt, Power Corp.'s hydro region director.

"(About) 1.6 gigawatts of power will not have to be generated by diesel" if the new dam is built, he added.

A gigawatt is equal to about one billion watts.