Toronto: Six companies have served notice of their interest in developing an important new part of Ontario’s transmission grid. The East-West Tie Line, which is expected to run from near Wawa to near Thunder Bay, is the province’s first foray into an open competition model for development of major transmission infrastructure.
“It’s good news for the province that there is this kind of interest in the project,” says APPrO Executive Director Jake Brooks, “because it suggests that there will be competitive pressure on the transmission developers.”
In 2010 the Ontario Energy Board set out a new process for development of major transmission infrastructure. The Transmission Project Development Process provides for an open competitive process to take place before the developer of a new transmission line is chosen by the regulator. The process was refined through consultation with industry stakeholders in 2009 and 2010. Although some transmission projects in Ontario will continue to be developed through the previous process, the development of the East West Tie Line was chosen as an appropriate project on which to test the new, more competitive process.
On August 22, the Board released a notice indicating that it was looking for formal expressions of interest in developing the East West Tie Line. It noted that it had recently received a report from the Ontario Power Authority recommending construction of the line. The OPA’s report, titled “Long Term Electricity Outlook for the Northwest and Context for the East-West Tie Expansion,” was filed on June 30.
The applicants responding to the OEB’s notice included Canadian Niagara Power Inc., EWT LP (a limited partnership composed of East-West Tie Inc., Hydro One Inc., Bamkushwada LP and Great Lakes Power Transmission EWT LP), Iccon Transmission Inc., Oncor Electric Delivery Company LLC, RES Canada Transmission LP., TransCanada Power Transmission (Ontario) L.P., and Upper Canada Transmission Inc.
Brooks noted that the level of interest can also be interpreted as an indication that potential developers have confidence in the newly-designed development process, even though this will be the first time it will be applied in practice.