Supporting Critical Transmission Infrastructure in Northeastern Ontario

The Ministry of Energy and Electrification (ministry) is proposing, subject to required approvals, to declare the Wawa to Porcupine line as a priority project and designate Hydro One Networks Inc. as the transmitter. These actions are intended to facilitate the timely development of a new 230-kilovolt, 260 km transmission line (built to 500 kV standards) in Northeastern Ontario from Wawa Transformer Station (TS) to Porcupine TS to be in service for 2030. The proposed transmission project is intended to:

• Support the transmission project to be built cost-effectively and on time in response to rapid electricity demand growth in Northeastern Ontario due to economic development priorities, electrification and decarbonization initiatives.
• Advance a shared goal of reconciliation by providing economic and partnership opportunities for Indigenous communities.

Our proposed actions for public feedback and rights-based consultation (as detailed further below) are as follows:

1. Prioritize The Wawa to Porcupine Transmission Project

   In October 2022, the Independent Electricity System Operator (“IESO”) published its plan titled Need for Northeast Bulk System Reinforcements. The study forecasted electricity demand in Northeast and Eastern Ontario to grow at a rapid pace over the next 10 years due to economic development priorities (e.g., Ontario’s Critical Minerals Strategy) and electrification of industry (e.g., Algoma Steel) initiatives. To support this demand growth, the IESO recommended four new transmission lines in Northeast and Eastern Ontario:

   • Mississagi to Third Line Line – a 230-kilovolt transmission line that will run approximately 75 kilometers from Mississagi Transformer Station (west of Sudbury) to Third Line Transformer Station (Sault Ste Marie);
   • Hanmer to Mississagi Line – a 500-kilovolt transmission line that will run approximately 205 kilometers from Hanmer Transformer Station (Greater Sudbury) to Mississagi Transformer Station (west of Sudbury near Wharncliffe);
   • Greater Toronto Area East Line – a 230-kilovolt transmission line that will run approximately 50 kilometers from either Cherrywood Transformer Station (Pickering) or Clarington Transformer Station (Oshawa) into Dobbin Transformer Station (Peterborough).
   • Wawa to Porcupine Transmission Line - a new single circuit 230-kilovolt transmission line running approximately 260 kilometres from Wawa Transformer Station (south of Wawa) to Porcupine Transformer Station (Timmins area).

   The first three transmission lines are under development (Environmental Registry of Ontario (ERO) # 019-7336, 2023) and, subject to approvals, are expected to be in service by 2029. A withheld designation of a transmitter for the Wawa to Porcupine Transmission Line was due to interest from multiple transmitters and the evaluation of proposals submitted by the interested transmitters.

   This new transmission infrastructure will enhance Ontario’s electricity system, improve resiliency and enable new customers to access Ontario’s clean electricity supply. It will also support rapidly increasing demand in Northern Ontario as residential, industrial and mining operations sectors grow and electrify.

   The ministry is proposing to bring forward an Order in Council that would, if approved, declare the Wawa to Porcupine Transmission Line, which is recommended to be in service by 2030, to be a priority project under s. 96.1 (1) of the Ontario Energy Board Act, 1998 (OEBA).

   Per s. 96.1 (2) of the OEBA, this declaration would require the Ontario Energy Board (OEB), the provincial economic regulator of the energy sector, to accept that the line is needed when assessing whether the project is in the public interest as part of its Leave to Construct review process. This would streamline the OEB’s review process and prevent delays so the project is brought online on time. The OEB would still be required to consider the interests of electricity consumers with respect to project costs and the reliability and quality of electricity service.

   Declaring this transmission line to be a priority project would not impact the transmitter's requirement to obtain all required government approvals, including under the Environmental Assessment Act and obtaining Leave to Construct from the OEB. These approvals include requirements for the transmitter to conduct rights-based consultation with Indigenous communities and to consult with the public, and stakeholders on the proposed project and require the transmitter to carry out a Class Environmental Assessment for the Wawa to Porcupine Line under the Environmental Assessment Act.

2. Designate Hydro One as the Transmitter to Develop the Priority Project

   The ministry is also proposing to bring forward an Order in Council (to be recommended by the Minister of Energy and Electrification) and companion Directive, to be made pursuant to s. 28.6.1 of the OEBA. If approved, this would direct the OEB to amend Hydro One Networks Inc. (Hydro One)’s transmitter licence to require it to undertake development work and seek all necessary approvals to construct the transmission project listed above.

   Designating Hydro One as the transmitter would provide Hydro One with the regulatory clarity it needs to initiate project development work and advance Indigenous partnership discussions on the specified project. This would help to avoid the possibility of delays in the approvals process which can add to development timelines and increased costs that are ultimately borne by electricity ratepayers.

   The ministry received Information Packages from two transmitters who were interested in developing this transmission line. A Review Committee comprising members from the Ministry of Energy and Electrification, Ministry of Natural Resources and Forestry (MNRF), Ministry of Indigenous Affairs and First Nations Economic Reconciliation (IAFNER)), Ontario Financial Authority (OFA) and the IESO assessed the Information Packages against broader policy objectives and evaluation criteria set by the ministry. The purpose of the Committee was to assess the two Information Packages and provide an independent recommendation to inform the ministry’s proposal for transmitter designation. Based on its assessment, the Review Committee unanimously recommended Hydro One as the transmitter for this transmission line. The framework used by the Review Committee to assess the Information Packages and make its recommendation was based on 3 primary policy objectives:

   • Maximize the likelihood that the project can be built on time.
   • Maximize value to / minimize impact on ratepayers.
   • Maximize benefits to Indigenous communities.

   Further, the development of this transmission line is expected to advance reconciliation in a meaningful and inclusive way by creating economic opportunities for Indigenous communities, such as equity participation and jobs. The proposed designated transmitter, Hydro One, established a First Nations equity partnership model in 2022, which offers First Nations a 50% equity stake in new transmission lines exceeding $100 million. ​The proposed transmission line exceeds this capital threshold, and Hydro One has already formed a partnership with 6 Indigenous communities, and it is expected that they will work with other impacted Indigenous communities on economic or partnership opportunities.

Consultation with Indigenous Communities on this Proposal:

The provincial Crown is committed to fulfilling its duty to consult Indigenous communities regarding any conduct that may have the potential to impact Aboriginal and treaty rights. The ministry will provide information to potentially impacted Indigenous communities about how they can participate in rights-based consultation at the early stage of project development for the transmission line.

This will include an opportunity to review and provide comments about this proposal through the ERO or Regulatory Registry, as well as opportunities for targeted consultation to share input about these proposed actions and potential impacts on Aboriginal and treaty rights directly with ministry staff.

In addition, the province expects to delegate the procedural aspects of rights-based consultation to the transmitter in respect of the transmission line, which may be fulfilled through environmental approvals and/or other provincial regulatory approvals and permits as appropriate.

Depending on the outcomes of consultations and rights-based consultation with Indigenous communities, the ministry anticipates bringing this proposal forward for a possible decision in Fall 2024 to ensure the transmission line is in service in 2030, as recommended by the IESO.

NOTE: As demand for electrification increases, the need for new transmission lines can be expected. The ministry recognizes the need for a more transparent and predictable approach to transmitter selection in the future. As such, the ministry is working with the IESO to develop a formal transmitter selection framework, which may incorporate a competitive process, to select transmitters in the future. This work may also consider whether to include additional components to assess socioeconomic impacts in the future transmitter selection framework. For more information on the transmitter selection framework, please visit the IESO website: Transmitter Selection Framework (ieso.ca).

The proposed Orders in Council and Directive, if approved, are intended to provide regulatory clarity and streamline the Leave to Construct approval hearing process for the project to avoid project delays, as well as begin early development work to achieve potential cost efficiencies, and advance Indigenous partnerships discussions. The proposal is not expected to have significant impacts on electricity ratepayers and other aspects of the approvals process for the project, including under the Environmental Assessment Act.