The Department of National Defence has agreed to pay $1.83 million to the Northwest Territories Power Corporation for damages resulting from a Canadian Forces helicopter cutting a power line near Yellowknife in February.

The incident occurred during Exercise Arctic Ram, when a Griffon helicopter practising low flying surveillance struck a transmission line from the Snare hydroelectric system. The helicopter landed safely, but the damage cut power to the Yellowknife area.

Three high-voltage transmission lines near Yellowknife were cut by a Canadian Forces helicopter in February, knocking out power to the city. (CBC)

The claim submitted by the power corporation covered the costs of repairing three transmission lines and of providing the communities with backup diesel-generated electricity for 10 days after the incident.

"This is good news for NTPC and its customers, our objective was to recover the full costs," said Bob Kelly, a representative for the corporation.

"DND was very helpful and co-operative throughout. They showed us the process that needed to be followed to submit the claim and assured us that it would be forwarded through the proper channels at DND. And three months later, less than three months actually, we have a settlement."

Back in April, the power corporation said it was submitting a claim for $2.4 million.

But Kelly said they did an internal review and lowered the claim. He said the military is paying the full amount.