Talla Burn Generation Ltd is constructing a run-of-river hydro-electric scheme on the Talla Burn at Beaumont Station, 20km from Millers Flat and 10km from Beaumont.
It has the capacity to generate 2.6MW of electricity using a maximum water take of 1.5cumecs as permitted by natural flow.
Talla Burn project engineer Paul Wilson told the Otago Daily Times the company's powerhouse on the Talla Burn would end up below water if either of Contact's proposals to dam the Clutha at Beaumont or Tuapeka went ahead.
Despite this, Mr Wilson said Talla Burn was supportive of Contact's plans, and would consider relocating the power station if need be.
The powerhouse was located about 200m from the Clutha and about 12m above the present river level, he said.
"Water would be about 5m above the floor level of the powerhouse, but my understanding is should one of the two Beaumont options be selected, we are still between 15 and 20 years away from that happening.
"We are certainly not opposed to it going ahead and we have the option of shifting the powerhouse up the hill," he said.
Contact is consulting the public on four proposals for dams on the Clutha, at Luggate, Queensberry, Beaumont and Tuapeka.
Mr Wilson said Talla Burn asked Contact about its proposals two years ago, to find out what lake levels would be after damming.
"Structurally, everything would already be in place [by the time Contact implemented any plans], and our scheme should be paid for within that period anyway, so it's not a great concern at this stage," he said.
Mr Wilson said it would cost "quite a bit" to move the powerhouse, but he had not looked into exactly how much.
"I am all for hydro power. I think it would be really good actually if [Contact's proposal]) went ahead. It's needed and I personally believe it would add to the area," he said.
