Rising Cost Estimates Prompt Ontario to Rethink Private-Sector Power Project

 

August 17, 2017

On July 31, NextBridge Infrastructure submitted an application to the OEB for permission to build the proposed transmission line.

Included in the filing is the estimated development and construction cost of the project: approximately $777.2 million, a good deal more than the original estimate of about $419 million.

The filings say the project could increase the average Ontario home hydro bill by approximately 30 cents per month over a 25-year period.

The latest price tag evidently raised eyebrows around Queen’s Park, as Ontario Energy Minister Glenn Thibeault wrote an Aug. 4 letter calling on the Independent Electricity System Operator (IESO), which manages the province’s power grid, to update its “need assessment” for the project.

In doing so, Thibeault cited “significantly higher” cost estimates for the project, which would bolster northwestern Ontario’s electricity supply, especially for the mining industry.

“The scale of the cost increases is very concerning to the Ontario Government and it would be appropriate for the IESO to review all possible options to ensure that ratepayers are protected,” wrote Thibeault, who asked for the findings to be delivered to his ministry by Dec. 1.

Outrage over Ontario’s hydro rates spurred the Liberal government to roll out a plan this spring to lower electricity bills by an average of 25 per cent by July 1.

Steven Stengel, a spokesperson for NextBridge Infrastructure, said costs jumped because of factors outside its control. As one example, the project’s target in-service date was bumped to 2020 from 2018 at the request of the province. 

The project’s design was also updated to better suit the terrain in northwestern Ontario, and the proposed transmission line was lengthened by 50 kilometres “to accommodate Pukaskwa National Park and stakeholder feedback, including First Nations and Metis communities,” Stengel said in an email.

“In spite of these increases, this project continues to present the most cost-effective way to serve the growing power needs of Northwest Ontario,” he said. “The project will create good jobs and economic benefits for the local communities, while expanding the delivery of reliable electricity through the province.”

Source: http://business.financialpost.com/commodities/energy/rising-cost-estimates-prompt-ontario-to-rethink-private-sector-power-project/wcm/60af4660-645b-45f7-9844-5c5f3fd0b272

 

Related Articles


Latest Articles

  • Virtual Training for Electricians Available at Many IBEW Canada Training Centres Across the Country

    Virtual Training for Electricians Available at Many IBEW Canada Training Centres Across the Country

    June 23, 2025 Virtual Training for Electricians (VET) is now available at many IBEW Canada Training Centres nationwide — and more are coming online soon! Whether your centre is already equipped or in the process of setting up, this is a game-changing opportunity you won’t want to miss. Need assistance? Contact the NETCO team. What… Read More…

  • Designing for Demand: The Role of Transformers in a Resilient EV Future

    Designing for Demand: The Role of Transformers in a Resilient EV Future

    June 23, 2025 Transformers in the EV Charging Boom: Are We Ready for the Load? As electric vehicles (EVs) continue their rapid rise, one question looms over the energy sector, municipalities, and developers alike: Is our infrastructure truly ready for the surge in demand? From city streets to highway rest stops, new EV chargers are… Read More…

  • The Time is Now: An Industrial Energy Efficiency Action Plan

    The Time is Now: An Industrial Energy Efficiency Action Plan

    June 23, 2025 In a whitepaper released on June third, ABB has set out the scale of the challenge facing the global industrial sector and emphasizes the critical role of industrial energy efficiency in meeting rising energy demand while strengthening energy security & affordability and driving industrial competitiveness. With 45% of the world’s electricity converted… Read More…

  • Multi-Family Construction Intentions Weigh Down Residential Sector

    Multi-Family Construction Intentions Weigh Down Residential Sector

    June 23, 2025 In April, the total value of building permits issued in Canada decreased by $829.6 million (-6.6%) to $11.7 billion. British Columbia (-$1.2 billion) led this decrease in construction intentions, which was mitigated by Ontario (+$299.3 million). On a constant dollar basis (2023=100), the total value of building permits issued in April fell by 6.6% from the previous… Read More…


Changing Scene

  • Stanpro Makes Significant Donation to Help Haven on the Queensway Move to a Larger Facility

    Stanpro Makes Significant Donation to Help Haven on the Queensway Move to a Larger Facility

    June 23, 2025 In an effort to provide essential resources to individuals and families in need in the GTA, EFC members once again stepped up to support Haven on the Queensway, a community resource centre in Etobicoke, ON. Earlier this year, Haven secured a new, larger location nearby its existing facility to meet growing demand… Read More…

  • Metalumen Manufacturing, Inc. Announces NRG INTENSI-T as New Sales Agency in Quebec

    Metalumen Manufacturing, Inc. Announces NRG INTENSI-T as New Sales Agency in Quebec

    June 23, 2025 Metalumen Manufacturing, Inc. is pleased to welcome NRG INTENSI-T as its new sales agency for the Quebec region. This partnership strengthens regional support and reflects a shared commitment to innovation and excellence. Since 1977, Metalumen has been designing, engineering, and manufacturing lighting products that blend functionality with design, offering luminaires tailored to… Read More…

  • IDEAL Electrical™ and BILT® Make it Easier to Learn Conduit Bending

    IDEAL Electrical™ and BILT® Make it Easier to Learn Conduit Bending

    June 23, 2025 Conduit bending – one of the hardest skills for professional electricians to master – is now easier than ever to learn, thanks to a first-of-its kind partnership between BILT, an app that has revolutionized step-by-step interactive instructions for DIYers and IDEAL Electrical, a 108-year old manufacturer of electrical tools and supplies for professional electricians…. Read More…

  • Introducing the New WAGO App: Your Jobsite Sidekick

    Introducing the New WAGO App: Your Jobsite Sidekick

    WAGO at your fingertips — scan the QR to get the app now. Stay connected with WAGO wherever you go. Download the WAGO App to access product details, documentation, configuration tools, as well as local distributors — all from your mobile device. Scan the QR code to get started on the App Store or Google… Read More…