The proposal involves the construction and operation of a hydro-electric power generation facility next to the main dam on the Ord River, using facilities established during initial dam construction for such a purpose.

When the dam wall was built, two tunnels were built to allow for provision and control of irrigation water, and the possibility of utilising waters from Lake Argyle to generate electricity.

The hydro-electric generating station would be built at the downstream "toe" of the dam. Two turbines would be installed with a combined generating capacity of 40MW at a lake level of 82m AHD or greater. While the majority of the structures would be below 'datum ground level', the superstructure, transformers and switching station would be above this level.

To de-water the site, a temporary coffer dam would be built some 100m downstream of the irrigation outlet, and would incorporate culverts to allow water through during this period.