Hydro One Expands Its Role in Northern Ontario Energy Partnership with New Acquisition

Hydro One Strengthens Its Presence in Northern Ontario

In a significant move for the energy sector, Hydro One Limited, through its subsidiary Hydro One Networks Inc., announced the completion of its acquisition of a 48 percent stake in the East-West Tie Limited Partnership. This acquisition, valued at approximately $261 million, bolsters Hydro One's influence and operational capabilities in serving Northern Ontario's electricity transmission needs.

The Importance of the East-West Tie Line

The East-West Tie Line, a substantial 450-kilometer double-circuit transmission route, connects Wawa to Thunder Bay along the scenic north shore of Lake Superior. Regulated by the Ontario Energy Board (OEB), this infrastructure is crucial for ensuring reliable electricity supply throughout the region. Hydro One now partners with the Bamkushwada Limited Partnership, which consists of six First Nations communities, and affiliates of NextEra Energy Canada—owners of a 48 percent stake in the partnership.

David Lebeter, President and CEO of Hydro One, emphasized the vital role of electricity in supporting and sustaining economic activity, remarking, "Electricity is the backbone of the economy... this investment will continue to support the reliable delivery of electricity that powers daily life and contributes to shared long-term prosperity in the region."

The acquisition reinforces Hydro One's commitment to the growth and development of northern communities, promoting economic stability and cooperation among local stakeholders.

A Historical Context

Hydro One's involvement with the East-West Tie Line traces back to its collaborative efforts with the Bamkushwada Limited Partnership. This partnership is formed by the Fort William First Nation, Michipicoten First Nation, Biigtigong Nishnaabeg (Ojibways of the Pic River First Nation), Pays Plat First Nation, Netmizaaggamig Nishnaabeg (Pic Mobert First Nation), and the Red Rock Indian Band. Such collaborations reflect Hydro One's dedication to fostering inclusive economic empowerment and supporting Indigenous communities through shared ownership and responsibility over vital infrastructure.

Hydro One's Operational Footprint

As Ontario's largest electricity transmission and distribution provider, Hydro One serves approximately 1.5 million customers with an impressive asset base of around $36.7 billion. The company reported an annual revenue of approximately $8.5 billion in 2024. In recent years, Hydro One has invested significantly in enhancing its transmission and distribution networks, totaling about $3.1 billion in 2024 alone. This commitment highlights Hydro One's focus on modernizing its operations and addressing infrastructure needs to meet the province's growing energy demands.

Economic Contributions

In addition to enhancing the electricity grid, Hydro One plays a crucial role in the economy, spending approximately $2.9 billion on local goods and services, fostering job creation, and contributing to economic growth across Ontario. Their workforce of around 10,100 skilled professionals works diligently to build and maintain a safe and reliable electricity system, crucial for supporting thriving communities.

Commitment to Communities

Hydro One's strategy doesn’t just end at providing electricity; it extends to committing to sustainability, diversity initiatives, and investing in the communities where they operate. By aligning their objectives with those of the local populations, Hydro One ensures that its growth and success are mirrored by the prosperity of these communities.

Conclusion

The recent acquisition marks a pivotal step for Hydro One in reinforcing its commitment to Northern Ontario's energy landscape. By securing a substantial role in the East-West Tie Limited Partnership, Hydro One not only augments its operational capabilities but also exemplifies its dedication to collaboration, community involvement, and sustainable growth. For further details on Hydro One's initiatives and investments, visit Hydro One's official website.