Hydro One Files for Approval on Two Major Ontario Transmission Projects Totaling $3 Billion
According to the Daily Commercial News, Hydro One Networks Inc. has filed two leave-to-construct applications with the Ontario Energy Board (OEB) seeking approval to build the Northeast Power Line and the Longwood to Lakeshore Transmission Line, two major 500-kilovolt transmission projects spanning Ontario.
Project Scope and Timeline
The Northeast Power Line would run as a single-circuit 500-kV line between Hanmer Transformer Station in Greater Sudbury and Mississagi TS near Wharncliffe, at an estimated cost of approximately $1.8 billion, with construction planned for completion in 2029. The Longwood to Lakeshore Transmission Line would connect Longwood TS in the Municipality of Strathroy-Caradoc to Lakeshore TS in the Municipality of Lakeshore, at an estimated cost of approximately $1.2 billion. That project is expected to bring roughly 550 MW of electricity to the Southwest Ontario region, with completion anticipated in 2030.
“Electricity demand in Ontario is increasing. These lines are part of one of the largest transmission line infrastructure investment portfolios in Canada that we are advancing together with First Nations,” said Ryan Docherty, executive vice-president of capital portfolio delivery at Hydro One.
Both projects include a First Nation Equity Partnership component, giving proximate First Nations the opportunity to invest in a 50% equity stake in the transmission line portion of each project. Leave-to-construct applications filed under Section 92 of the Ontario Energy Board Act, 1998 must include details on route, design, timing, and cost.
What It Means for Subcontractors
- Two separate project corridors mean distinct procurement opportunities. Northern Ontario subcontractors should watch the Hanmer-to-Wharncliffe corridor, while Southwest Ontario firms should track the Strathroy-Caradoc to Lakeshore route.
- OEB approval is still pending, so construction timelines are not locked in. Monitor the OEB process closely before committing resources or bids.
- The First Nations equity partnership structure may influence contracting and subcontracting requirements on both projects. Firms with existing relationships or experience working alongside First Nations partners may have an advantage.
- With a combined project value of approximately $3 billion and completion targets in 2029 and 2030, early positioning with Hydro One’s supply chain is advisable for civil, electrical, and transmission line specialty contractors.
