A proposed hydroelectric dam on the Similkameen River near Princeton has been shelved by Fortis.

The company said it based its decision on the results of its most recent project feasibility studies.

“We believe that building a water storage hydroelectric facility on the Similkameen River would create many benefits for the area,” project manager Joseph Sukhnandan said in a news release. “However, based on the results of our latest engineering and economic studies, we determined the project is not financially viable at this time.”

Fortis may re-evaluate the viability of the project in the future based on customer demand and market conditions.

The proposed 165-metre-high concrete dam was to be located about 15 kilometres southwest of Princeton. It would have delivered 45 to 65 megawatts of electricity and provided associated water management benefits.

Sukhnandan and local FortisBC representative Bob Gibney appeared before the Regional District of Okanagan-Similkameen board Thursday to outline the dam decision and update the board on the utility’s plan to introduce smart meters. However, the details were deemed to be privileged information and the news media was asked to leave the meeting.

Officials and Fortis and directors however  were hashing over details of what should be in a budget for such a project – like environmental protection.

In January, the provincial government issued a two-year “investigative permit” for Fortis to carry out further assessments, studies and site investigations into the proposed dam.