Hydro One breaks ground on Chatham to Lakeshore Transmission Line unlocking Ontario's clean energy future

The new line will drive the province's clean energy value chain and help make southwest Ontario the hub for agri-food and manufacturing

CHATHAM-KENT, ON, June 19, 2023 /CNW/ - Today, Hydro One broke ground on its Chatham to Lakeshore Transmission Line, which once built, will provide clean electricity to support growth in the agri-food and manufacturing industries. Hydro One President and CEO, David Lebeter was joined by Minister of Energy, Todd Smith, First Nation leaders, as well as several local agricultural and municipal leaders to celebrate the start of construction on the $268 million investment. 

"The Chatham to Lakeshore Transmission Line is paving the way for Ontario's clean energy future and will support economic growth and local food suppliers in southwest Ontario," said David Lebeter, President and CEO, Hydro One. "With our strong history in building new transmission lines, we're focused on creating a new electricity network in the southwest that will bring a cascade of benefits including more jobs and economic growth, as well as equity investment opportunities for local First Nations that will generate revenues for generations to come."

"We're getting shovels in the ground to build the new Chatham to Lakeshore Transmission Line to support the incredible growth across the agri-food and battery manufacturing sectors in Windsor-Essex," said Todd Smith, Minister of Energy. "This critical work is part of our commitment to build faster and smarter and help power up growth across the southwest, while securing access to clean, reliable and affordable electricity for decades to come."

"The Chatham to Lakeshore line is an essential part of the plan for meeting the increasing electricity needs in the southwest," said Lesley Gallinger, President and Chief Executive Officer, Independent Electricity System Operator (IESO). "Along with energy efficiency programs and innovative projects to reduce peak demand, it will be instrumental in supporting the ongoing economic growth in the region." 

Construction of the Chatham to Lakeshore Transmission Line will be completed by contractor, Voltage Power Ltd. (Voltage), a wholly-owned subsidiary of Aecon Group Inc. Aligned with Hydro One's commitment to source five per cent of all purchases of materials and services from Indigenous businesses by 2026, a significant portion of the 49 km line will include the purchases from qualified Indigenous businesses as subcontractors to Voltage. The line will add approximately 400 megawatts of clean electricity to the region, which is enough power to supply a city the size of Windsor. The line is expected to be in service by the end of 2025.

The IESO projects that energy demand in southwest Ontario will quadruple by 2035ⁱ. The Chatham to Lakeshore Transmission Line is part of a network of infrastructure projects across southwest Ontario that will unlock the electrification potential of Ontario's economy to mitigate climate change and help address this forecasted demand. As part of the company's pathway towards Reconciliation, Hydro One has offered five First Nations in the region a 50 per cent equity stake in the transmission line component of the project and is committed to working to advance the project in partnership.

"Farmers rely on electricity to support their way of life, and we're thrilled that we're one step closer to having more clean power with this new project," said Louis Roesch, Zone 1 Director, Ontario Federation of Agriculture. "Reliable electricity for farmers and farming businesses are essential in keeping southwest Ontario competitive. We continue to work very closely with Hydro One and offer feedback from our members, which is critical as the project moves ahead."

"Greenhouses grow healthy, nutritious, and fresh vegetables year-round that feed Ontario families and create thousands of jobs throughout the entire value chain in the region," said Richard Lee, Executive Director, Ontario Greenhouse Vegetable Growers. "In the next five years, our vegetable production growth is expected to increase exponentially to meet consumer demands and having the infrastructure in place, like this transmission line will allow our sector to continue to grow and expand."

"Businesses serve as powerful economic drivers in local communities, and they depend on a reliable supply of electricity to continue to thrive," said Rocco Rossi, President and CEO, Ontario Chamber of Commerce. "Taking proactive steps to address the growing demand for more power is essential to ensuring that businesses can continue to grow in Ontario with confidence."

"Together, we are working to ensure Chatham-Kent-Leamington and all of southwestern Ontario remain global leaders in clean electricity with this project," said Trevor Jones, Member of Provincial Parliament for Chatham-Kent-Leamington. "This is a true made-in-Ontario solution that will attract investments to our communities, creating optimism and prosperity for the future." 

"The availability of clean and reliable electricity is propelling growth in southwestern Ontario," said Darrin Canniff, Mayor, Municipality of Chatham-Kent. "As our energy demands increase, we're looking forward to realizing the economic benefits this line and the new network will bring to Chatham-Kent once they are built."

"The Chatham to Lakeshore Transmission Line will bring clean electricity that supports the growth of our community and creates new opportunities for local prosperity," said Tracey Bailey, Mayor, Municipality of Lakeshore. "We are committed to working together to deliver this critical project and secure a bright future for Lakeshore's communities and all of southwestern Ontario." 

"The agri-food sector in Essex County is growing, creating jobs for families in communities across the region," said Hilda MacDonald, Mayor, Municipality of Leamington and Warden of Essex County. "A clean, sustainable power supply supporting the future of local food production is a smart investment that will benefit all of Ontario."

"Industries in our region need access to more clean and reliable electricity to power economic development," said Stephen MacKenzie, President and Chief Executive Officer, Invest WindsorEssex. "These priority transmission projects will create new opportunities and attract investments in southwestern Ontario and will ensure continued local prosperity."

"At Black & McDonald, we're proud to be a part of the construction of this critical project that will provide this growing region with the electricity it needs to continue to thrive," Chuck Mossman, Vice President, Southern Ontario Utility Region, Black & McDonald. "Our skilled team is committed to enhancing the Chatham Switching Station in a safe and sustainable way, with the station improvements providing benefits for everyone in the region."

"Clean electricity enables communities to thrive and grow, and we're proud to build the necessary infrastructure that powers them," said Steve Jeffery, Director, Operations, Voltage Power Ltd. "Our employees are part of these diverse communities and are proud to work collaboratively to bring power where we live and work."

For more information about the project, please visit HydroOne.com/Chatham-to-Lakeshore.

Hydro One Limited (TSX: H)

Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity transmission and distribution provider with approximately 1.5 million valued customers, approximately $31.5 billion in assets as at December 31, 2022, and annual revenues in 2022 of approximately $7.8 billion.

Our team of approximately 9,300 skilled and dedicated employees proudly build and maintain a safe and reliable electricity system which is essential to supporting strong and successful communities. In 2022, Hydro One invested approximately $2.1 billion in its transmission and distribution networks, and supported the economy through buying approximately $1.9 billion of goods and services.

We are committed to the communities where we live and work through community investment, sustainability and diversity initiatives. We are designated as a Sustainable Electricity Leadertm by Electricity Canada.

Hydro One Limited's common shares are listed on the TSX and certain of Hydro One Inc.'s medium term notes are listed on the NYSE. Additional information can be accessed at www.hydroone.com, www.sedar.com or www.sec.gov.

SOURCE Hydro One Inc.