Three planned transmission lines in northeastern Ontario to cost $1.5B | CBC News

There are three new transmission lines in the works for northeastern Ontario, that will cost an estimated $1.5 billion to build. 

Ahmed Maria, director of transmission planning with Ontario’s Independent Electricity System Operator (IESO), said the lines are needed primarily to meet growing electricity demand from the mining industry and Algoma Steel in Sault Ste. Marie. 

“Algoma Steel is electrifying its operations by connecting to electric arc furnaces and that will almost double the demand for electricity that we’re seeing in Sault Ste. Marie today,” said Maria.

The IESO operates Ontario’s electricity system, and also looks ahead 20 years to predict what demand will be, and help decide how to meet it.

Maria said that the switch away from fossil fuels, as more people get electric vehicles or switch to heat pumps to warm their homes, will drive up some demand in northeastern Ontario, but it’s minimal compared to industry.

One of the planned transmission lines will cover 260 kilometres connecting the Wawa Transformer Station and the Porcupine Transformer Station in northeastern Ontario.

The other two will connect Sudbury and Sault Ste. Marie. One will go from Sudbury to Blind River, and the other will continue from Blind River to Sault Ste. Marie.

Ahmed said the transmission lines connecting Sault Ste.Marie and Sudbury are planned to be completed by 2029. The line connecting Wawa and Porcupine is expected to be finished by 2030.

All three lines will carry electricity generated in northern Ontario and other parts of the province, Ahmed said.

Partnerships with First Nations

The three transmission lines will also involve First Nations in the respective regions, who will be partners in their construction and maintenance.

The province is still accepting bids for the Wawa to Porcupine line, but at least two First Nations coalitions have applied.

The Wabun Tribal Council – which represents Mattagami, Brunswick House, Matachewan, Flying Post and Chapleau Ojibwe First Nations – is partnering with Hydro One to bid on the transmission line.

Another coalition, called the Transmission Infrastructure Partnerships 9 (TIP-9) coalition has also bid on the same project. It represents Taykwa Tagamou Nation, Michipicoten First Nation, Chapleau Cree First Nation and Missanabie Cree First Nation.

For the more southern lines, connecting Sault Ste. Marie and Sudbury, Batchewana First Nation, Garden River First Nation, Thessalon First Nation, Mississauga First Nation, Serpent River First Nation, Sagamok Anishnawbek, Atikameksheng Anishnawbek, and Wahnapitae First Nation have formed a consortium to partner with Hydro One on the projects.

The province has named Hydro One its preferred partner for the two lines.

In 2022, Hydro One launched its First Nations 50-50 equity model, and is using it for all future projects.

Penny Favel, Hydro One’s vice-president of Indigenous relations and sustainability, said on any transmission line that costs more than $100 million, impact First Nations will have the opportunity to invest 50 per cent of the equity in that line.

With that investment they’ll earn the Ontario Energy Board rate of return between eight and 10 per cent, once the line is up and running. 

“It’s one of those great things where doing the right thing is really good for your business as well.– Penny Favel, Hydro One vice-president of Indigenous relations and sustainability

“Those nations are going to be helping us build the project, giving us advice on routing, they’re going to have procurement opportunities for their businesses and they’re going to be part of our project committees as we construct,” Favel said.

The projects will also create job opportunities for participating First Nations.

Favel said that because these projects have a long lead up time, it gives Hydro One time to train people on construction and maintenance of the infrastructure.

The new 50-50 equity model also sets a baseline before Hydro One even partners with First Nations, and that helps projects get off the ground faster, she said.

“It’s one of those great things where doing the right thing is really good for your business as well,” Favel said.

“So it absolutely makes projects easier to build, faster to build, and you end up with better projects at the end.”