Hydro One invests $257 million in the East-West Tie line in Ontario
Hydro One purchases a 48% stake in the East-West Tie line for $257 million, strengthening energy infrastructure in Northern Ontario and collaborating with First Nations and private partners.
| Sectors | Power Grids, Distribution |
|---|---|
| Themes | Investments & Transactions, Corporate Investment |
| Companies | Enbridge |
Hydro One Limited has announced the acquisition of 48% of the shares in the East-West Tie Limited Partnership for a total of $257 million, subject to adjustments. This transmission line, stretching 450 kilometers between Wawa and Thunder Bay, is a strategic asset for Ontario’s electricity grid and is regulated by the Ontario Energy Board (OEB).
An essential infrastructure for Northern Ontario
The East-West Tie line connects communities and industries in Northwestern Ontario to the provincial grid. With an OEB-approved rate base of $880 million, this acquisition reinforces the electricity transmission capacity in a key region for economic and energy development.
Hydro One joins the existing partnership, which includes the Bamkushwada Limited Partnership representing six First Nations, as well as NextEra Energy Canada, LP, which also holds 48% of the remaining shares.
A partnership model with First Nations
The Bamkushwada Limited Partnership represents Indigenous communities from Fort William, Michipicoten, Biigtigong Nishnaabeg (Ojibways of Pic River), Pays Plat, Netmizaaggamig Nishnaabeg (Pic Mobert), and the Red Rock Indian Band. This partnership model aims to ensure active inclusion of First Nations in regional energy projects.
The prior management by OMERS Infrastructure and Enbridge highlighted the importance of collaboration with these Indigenous communities. The arrival of Hydro One, a dominant player in Ontario’s electricity infrastructure, is expected to continue this partnership approach and contribute to grid reliability.
Financial aspects and regulatory framework
The transaction, which remains conditional on the fulfillment of customary criteria, reflects Hydro One’s strategy of consolidating assets within the province. This project was advised by CIBC Capital Markets as financial advisors for Hydro One and Gowling WLG for legal aspects. On the other side, OMERS and Enbridge were advised by TD Securities and Torys LLP.
With this acquisition, Hydro One reaffirms its key role in Ontario’s energy network while contributing to the economic inclusion of First Nations.
