Investing in Transmission

Transmission planning and upgrades are driven by system reliability needs, load growth, and integration of generation resources, including renewable resources. Maintaining the high voltage transmission lines that form the backbone of the electricity system is vital to ensure reliability of the grid.

Having the transmission we need to enable our supply mix goals is a key driver of electricity planning. The existing transmission system, including projects in progress, will be sufficient to enable supply mix targets identified in this LTEP.

A Focus on Northwestern Ontario

Northwestern Ontario has recently received a lot of attention when it comes to electricity planning. That’s in part because while provincial demand is generally flat, there could soon be a significant increase in energy demand in northwestern Ontario, largely because of an expected increase in mining activity.

In 2010, Ontario began moving forward with a plan for the northwest, when the new East-West Tie transmission line was identified as a priority project. As part of an integrated plan to meet the needs of the Northwest, work on that new line has begun. The new East-West Tie line will reduce transmission constraints and allow a greater two-way flow of electricity across Northern Ontario. Efforts are currently focused on detailed engineering work and seeking necessary approvals such as the Environmental Assessment and engagement with First Nation and Métis communities. The proposed project is expected to be finished in 2018 and will create hundreds of jobs in the service and construction industries for the duration of development and construction.

While the new East-West Tie line will provide a new source of supply for the northwest, the 2013 LTEP anticipates that new resources may also be needed to make sure that users in specific parts of the northwest have the power they need.

Planning for the northwest has a number of different facets, some of which focus on areas within the region. The OPA’s analysis of the needs and solutions for the North of Dryden area identified the need to meet the increased electricity demand from mining. Among other things, the report assessed what needs to be done to the electricity system serving Red Lake and Pickle Lake to increase capacity to serve new demand. The OPA’s report looked at transmission and generation options.

Ring of Fire

The Ring of Fire, 540 km northeast of Thunder Bay, has the potential to become a significant economic development driver for Northern Ontario and First Nation communities.

To help realize this potential, Ontario has:

• Announced its intention to partner with industry, First Nations and the federal government to create an infrastructure development corporation.
• Appointed former Supreme Court of Canada Justice Frank Iacobucci as lead negotiator on behalf of Ontario in community-based discussions with Chiefs of the Matawa Tribal Council on regional considerations in resource development in the Ring of Fire.

Energy is part of the successful development in the Ring of Fire region. We are committed to working with key partners to meet energy needs and maximize benefit for communities.

Ontario has taken a leadership role in planning for development, however, the federal government must step up and provide support. Ontario will continue to work on the smart, sustainable and collaborative development of the Ring of Fire.

The Ring of Fire, the vast mineral-rich area north of Long Lac and east of Pickle Lake on the edge of the Hudson Bay Lowlands, could be a game-changer for the northern economy. Mining developers have shown significant interest in this area in recent years. The province is committed to ensuring its plans reflect the long-term potential for demand at the Ring of Fire while recognizing the role of electricity customers in planning for their supply needs.

However, mining demand is not limited to the area north of Dryden or the Ring of Fire. There is additional mining potential elsewhere in the northwest, including, for example, in the areas near Fort Frances and Atikokan. Working with Aboriginal communities, local municipalities and businesses, the province will ensure adequate supply across the region.

As part of the longer-term set of solutions for the area, the government expects Hydro One to begin planning for a new Northwest Bulk transmission line, west of Thunder Bay, with the project scope to be recommended by the OPA. A new line would increase transmission capacity and provide a means for new customers and growing loads to be served with the clean and renewable sources that comprise Ontario’s supply mix. Over the long term, it would also enhance the potential for development and connection of renewable energy facilities, which can be factored into future plans. Because of its importance to the region, this new line has been identified as a priority project. Hydro One and Infrastructure Ontario will be expected to work together to explore ways to ensure that the project is developed and delivered in a cost-effective manner, and results in value for Ontario electricity customers.

Another driver for transmission investment in the northwest is the move toward a cleaner supply of power in Ontario’s First Nation remote communities.

Following up on a commitment made in the 2010 LTEP, the OPA has looked at the costs of connecting the remote First Nation communities in the northwest; these communities are currently not connected to the province’s electricity grid and rely instead on expensive diesel fuel to generate their electricity. Connecting the remote First Nation communities in Northwestern Ontario is a priority, but federal commitment and co-operation will be required to make it a reality. For those communities where grid connection is not feasible, the province, working with key stakeholders, will explore options to reduce reliance on diesel. Chapter 6 - First Nation and Métis Communities discusses the connection of remote First Nation communities in more detail.

Taken together, the tasks of connecting remote communities and meeting the demand from new mining development are likely to require significant investment in transmission capacity. In fact, Ontario has initiated planning that could lead to about $2.2 billion in transmission investments in the northwest over the long term. Projects that are in the planning stage include:

• East-West Tie Expansion;
• A new Northwest Bulk transmission line;
• A new line to Pickle Lake;
• Red Lake Area transmission upgrades; and
• Grid connection of remote communities – depending on federal contributions.

These transmission projects, if implemented, would increase the reliability and flexibility of the system in the northwest. They would also help to ensure sufficient supply to meet the forecast load growth in the region, or provide new connections for remote communities.

Transmission investment of this magnitude would be expected to support a total of about 1,800 jobs in the services and construction industry and its supplier industries over the course of development and construction.

A new line to Pickle Lake, first identified as a priority in the 2010 LTEP, is integral to regional needs and economic development. It will help serve new demand in the area north of Dryden, as well as provide increased capacity to connect remote communities north of Pickle Lake. Given its importance to the connection of remote communities, this project continues to be a key priority for Ontario.

Ontario’s northwest has been a focus for transmission planning because of the complexity and size of the needs there, but it is not the only place in Ontario where transmission planning and investments have been made.

Many of Ontario’s distributors in other areas, such as York Region, Toronto, Ottawa and Leamington, are also seeing growth. They are engaged with the IESO and the OPA on regional planning for specific areas where demand growth and intensification are leading to new needs and pressures on the electricity system. The focus here is on identifying needs and the options to meet those needs. This is further discussed in Chapter 5 - Regional Planning.

In other regions across the province, planning is complete and new equipment is being put in place. For example, Hydro One’s Wood Pole Replacement program is driven by the need to replace and refurbish existing assets that have been in place for decades. Hydro One’s re-wiring of a line west of London is ensuring that additional power from clean and renewable sources can be safely and reliably integrated into the transmission system. Some projects, such as transmission reinforcement in Guelph, are being driven by growth in demand and the need to maintain the dependable, reliable power supply we’ve come to expect.

These essential investments in new and refurbished transmission and distribution infrastructure ensure the reliable delivery of power, keeping the lights on for customers and supporting jobs and local economies. All told, Hydro One alone has invested more than $11 billion in its transmission and distribution systems since 2003 - nearly $1.5 billion in each of 2011 and 2012, and more than $600 million in the first half of this year. Hydro One’s capital investments since 2003 supported an average of 8,000 jobs, both directly - including through Hydro One’s own employees and those of its contractors - and indirectly, through broader supply chains. They have also contributed to Ontario’s gross domestic product by an average of $835 million annually. Some examples of these recent investments are:

Ontario

Wood Pole Replacement Program

Province wide
Est. Cost: $56.8 million
Exp. In-Service: 2013/2014

Hydro One has about 7,000 km of transmission lines that use wood pole structures, most of which are in Northern Ontario. There are about 42,000 of these wood poles in all.

Wood structures deteriorate over time due to environmental factors such as weather, and even the presence of insects and wildlife. Hydro One regularly tests the condition of poles and replaces them as needed.

A total of 1,700 wood pole structures that have reached the end of their service life will be replaced in 2013 and 2014.

Central Ontario

Peterborough-Ottawa Area

C25H Line Refurbishment
Est. Cost: $80.8 million
Exp. In-Service: 2017

The 170 km high voltage transmission line between Peterborough and the Ottawa area is 84 years old and is at the end of its useful life.

Refurbishing the line will help maintain reliable electricity service for customers and serve future load growth.

South Georgian Bay/Muskoka

Circuit Breaker Replacement at Orangeville Transformer Station
Est. Cost: $28.1 million
Exp. In-Service: 2014

The Orangeville Transformer Station is a key station that enables the flow of power between south-western and central Ontario. Circuit breakers are being replaced to maintain the reliability of the local system, and reduce the risk of further equipment deterioration.

Northeastern Ontario

Sudbury/Algoma

Circuit Breaker Replacement at Hanmer Transformer Station
Est. Cost: $26.1 million
Exp. In-Service: 2013

Hydro One is investing $26 million to replace the circuit breakers in the important Hanmer Transformer Station. The Hanmer Transformer Station is critical for getting electricity from hydroelectric dams in northeastern Ontario to where it can be used.

The project will, among other things, help ensure a reliable supply of electricity for mining and associated operations in the Sudbury area. The work is expected to be completed this year.

North/East of Sudbury

Replacement and Relocation of Circuit Breakers from Abitibi Canyon Switching Station to Pinard Transformer Station
Est. Cost: $47 million
Exp. In-Service: 2013

Additional circuit breakers are being replaced and moved from the Abitibi Canyon Switching Station to the Pinard Transformer Station. The Abitibi Canyon Switching Station is a key station for getting clean, renewable water power from generation sites in the northeast to places where the power is needed.

The enhancement is expected to cost $47 million, and will be in service in 2013.

East Lake Superior

Replacement of Wooden Line Support Structures in Sault Ste. Marie
Est. Cost: $4.9 million
Exp. In-Service: 2014

Great Lakes Power is replacing wooden transmission poles and towers with metal structures in Sault Ste. Marie. Many of the deteriorating wooden structures are located close to residences and institutions, so their replacement will enhance public safety, as well as maintain reliability.

Southern Ontario

Hamilton Area

Station Equipment Replacement
Est. Cost: $13.2 million
Exp. In-Service: 2015

The Kenilworth Transformer Station in Hamilton serves an industrial area vital to the local economy. Hydro One is investing $13 million to replace equipment that is nearing the end of its expected service life to ensure customers in the Hamilton area continue to receive a reliable supply of electricity.

Southwestern Ontario

Chatham/Lambton/Sarnia

Equipment Replacement at Wallaceburg Transformer Station
Est. Cost: $26 million
Exp. In-Service: 2013

Transformer equipment at Wallaceburg Transformer Station required replacement to reduce operational risks and maintain local system reliability.

Greater Toronto Area

Toronto Area

Station Upgrades at Leaside, Hearn and Manby
Est. Cost: $148 million
Exp. In-Service: 2014-2015

With more than 700,000 customers in Toronto, efforts are under way by Hydro One to upgrade equipment at its Hearn Switching Station and the Manby and Leaside Transformer Stations in Toronto. These three major transmission stations provide Toronto with about 40% of its electricity needs.

The changes will improve local reliability and increase the amount of new and renewable generation that can be connected to distribution systems in the Greater Toronto Area.

Toronto Area

Richview Transformer Station - Air Breaker Replacement
Est. Cost: $61.2 million
Exp. In-Service: 2017

The City of Toronto relies on eight major supply points for its electricity – seven large transmission facilities and one generating plant.

Hydro One is replacing aging equipment at the Richview Transformer Station, a critical station for the city’s west end. This will help maintain the reliability of electricity supply for residents living and working in the west end and downtown Toronto.

Toronto Area

Midtown Transmission Reinforcement
Est. Cost: $115 million
Exp. In-Service: 2015

A joint effort between Hydro One and Toronto Hydro, the Midtown Transmission Reinforcement project will strengthen the transmission system through midtown Toronto. Replacing aging equipment and building a new transmission line, part of which is underground, will ensure a safe and reliable supply of power to customers and provide adequate supply to meet future load growth through midtown Toronto.

Construction has been underway since 2011.

Toronto Area

New Copeland Transformer Station (formerly Bremner Transformer Station)
Est. Cost: $195 million
Exp. In-Service: 2014^{footnote 1[1]}

Downtown Toronto’s power distribution system is currently served by five transformer stations. The new Copeland Transformer Station will ensure reliable supply for the fast-growing downtown core, and take stress off the existing Windsor Transformer Station, which currently serves 9 of the 10 largest buildings in Toronto. It will also provide power to the redeveloped waterfront.

This new station in downtown Toronto will help to alleviate the strain on neighbouring stations and will help to serve the growing customer base. It will also permit critical asset renewal at neighbouring stations to take place.

Clarington Transformer Station

New Transformer Station
Est. Cost: $297 million
Exp. In-Service: 2017

The Pickering Nuclear Generating Station is a critical source of electricity for the eastern part of the Greater Toronto Area. The Clarington Transformer Station, which will connect high voltage 500 kV lines and 230 kV lines in the area, will be required to come into service before Pickering Generating Station can be shut down, to ensure reliable supply for customers in the Eastern Greater Toronto Area.

The station will also enhance the reliability of supply to parts of Durham region. The project is pending a decision from the Minister of the Environment on whether an individual Environmental Assessment is required.

In Summary

• Hydro One will be expected to begin planning for a new Northwest Bulk Transmission Line to increase supply and reliability to the area west of Thunder Bay. The area faces growth in demand, some of which is beyond what today’s system can supply. Hydro One and Infrastructure Ontario will be expected to work together to explore ways to ensure cost-effective procurement related to the line.
• Connecting remote northwestern First Nation communities is a priority for Ontario. Ontario will continue to work with the federal government to connect remote First Nation communities to the electricity grid or explore on-site alternatives for the few remaining communities where there may be more cost-effective solutions to reduce diesel use.
• All regions of the province can expect timely local transmission enhancements as needs emerge. Upgrades and investments will meet system goals, such as maintaining or improving reliability or providing the infrastructure necessary to support growth.