Enhancing Transmission Capacity Between Northern and Southern Ontario - The Barrie to Sudbury Transmission Lines

The Government of Ontario has recently issued and published its Integrated Energy Plan, Energy For Generations: Ontario’s Integrated Plan to Power the Strongest Economy in the G7 (the Plan), which outlines the actions being proposed or taken by the provincial government to meet the challenge of generating and delivering the affordable, secure, reliable and clean energy Ontarians need. The Plan highlights electricity transmission projects that should proceed with early planning and development work to alleviate existing transmission bottlenecks identified by the Independent Electricity System Operator (IESO) in their ongoing regional and bulk planning studies.

Consistent with this plan, and based on recommendations of the IESO, the Ministry of Energy and Mines (ministry) is proposing to take actions to facilitate the development of two new single-circuit 500-kilovolt transmission lines that will run approximately 290 kilometers from Essa Transformer Station (TS) near Barrie, to Hanmer TS in Sudbury, and associated station facilities.

The proposed actions, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving required approvals, are intended to:

• Support the planned transmission project so that it may be built on time and cost-effectively to meet rapidly growing electricity needs that would enable economic development and clean generation initiatives in Northern Ontario.
• Advance a shared goal of reconciliation with Indigenous communities by enabling economic, partnership, and leadership opportunities that can bring prosperity and security to the region.

Our proposed actions for public feedback are as follows:

1. Prioritize one of the Barrie to Sudbury Transmission Lines

The ministry is proposing to bring forward an Order in Council that would, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving required approvals, declare one of the single-circuit transmission lines, recommended to be in-service by 2032, to be a priority project under section 96.1 (1) of the Ontario Energy Board Act, 1998 (OEBA).

Per section 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 this 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 requirement for the transmitter 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 consult with Indigenous communities, the public, and stakeholders on the proposed project.

Only one of the single-circuit lines is being recommended by the IESO to proceed to construction in the near-term, and thus requiring prioritization. However, by designating Hydro One Networks Inc. (Hydro One) as the transmitter on both lines, per our proposed action below, the ministry will provide the regulatory clarity needed to initiate development work for the second line to ensure that it can be built on time when it is needed in the future. The ministry will consider whether further actions are necessary to prioritize the second line as transmission needs in the region evolve.

2. Designate Hydro One as Transmitter for the Barrie to Sudbury Transmission Lines

The Government is also proposing, subject to fulfillment of applicable consultation obligations, including Duty to Consult and receiving required approvals, to direct the OEB, pursuant to section 28.6.1 of the OEBA, to amend Hydro One’s transmitter licence to require it to undertake development work on the Barrie to Sudbury Transmission Lines and seek all necessary approvals to construct one of the two lines in the near-term.

The IESO has stated that this project is urgent and complex due to the number of local communities affected, therefore indicating that it is not suitable for competitive procurement.

As the local transmitter in the region, Hydro One is best situated to promptly undertake development work for this project to meet the IESO’s recommended in service date. Hydro One’s ownership of the connecting infrastructure, their familiarity with Ontario’s regulatory and permitting processes, and its established relationships with local and Indigenous communities, best positions Hydro One to advance the development of this project.

Furthermore, Hydro One’s First Nation Equity Partnership Model, launched in 2022, offers First Nations the opportunity to advance the project together in partnership and a 50% equity stake in new transmission lines exceeding $100 million. This model is expected to advance reconciliation by creating economic opportunities for First Nation communities, such as equity participation, procurement opportunities and jobs.

Consultation with Indigenous Communities on this Proposal:

The provincial Crown is committed to fulfilling its duty to consult with Indigenous communities in respect of its conduct that may have the potential to adversely impact Aboriginal and treaty rights protected under Section 35 of Canada’s Constitution Act 1982 (section 35 rights). The ministry will provide information about the proposed transmission projects and the above policy actions to potentially impacted Indigenous communities, including information about how they can participate in the consultation process at this early stage of project development.

This would include an opportunity to review and provide comments about this proposal through the Environmental Registry of Ontario (ERO), as well as targeted consultation opportunities for potentially impacted Indigenous communities to share their input about the proposed actions and any potential for impacts to section 35 rights directly with ministry staff.

In addition, should the proposal move forward, the province expects to delegate the procedural aspects of Crown consultation to the transmitter in respect of the transmission line, which may be fulfilled through the Ministry of Environment, Conservation, and Parks’ (MECP) environmental approvals and other provincial regulatory approvals and/or permits as appropriate.

Timing:

Depending on the outcomes of consultation, including consultation with Indigenous communities, the ministry anticipates bringing this proposal forward for a possible decision later in 2025, to ensure the transmission line identified above can meet the IESO’s recommended in-service date.

Environmental Impact:

Like all infrastructure projects, transmission projects have the potential to impact land (e.g., impacts to farmland), local environments and ecosystems, such as watersheds. These proposed actions do not impact the requirement for the transmitter to obtain all required government permits and approvals, including under the Environmental Assessment Act, prior to proceeding with the project’s construction. These approvals include requirements for the transmitter to consult with Indigenous communities, the public, and stakeholders on the proposed project, including in the determination of the exact path of the line, its impacts to the environment, and any appropriate mitigation measures.

Building transmission infrastructure is essential for maintaining Ontario’s affordable, secure, reliable and clean energy advantage. Success in achieving these objectives could have significant positive impacts on the environment.