THUNDER BAY – One of the proponents aiming to build a new transmission line along the north shore of Lake Superior is disappointed it seems the decision on how the project will be awarded will come down to two numbers.
The Ontario Energy Board on Dec. 20 requested both NextBridge and Hydro One to submit firm, not-to-exceed prices by the end of this month before it will make a decision on which proponent will build the transmission line, which will extend from Wawa to just east of Thunder Bay. The delay has pushed the project's in-service date to 2021 at the earliest.
NextBridge had originally been selected in 2013 to develop the 450-kilometre East-West Tie but when the consortium’s estimate ballooned to more than $700 million from the original $400 million, the province ordered all options to be reviewed.
Hydro One, which was initially passed over, re-entered last year with a leave to construct application for a proposal they have called the Lake Superior Link. The utility claims their plan would result in a shorter and cheaper option than NextBridge’s East-West Tie.
During their energy board hearing last year, NextBridge provided a construction cost estimate of $737 million, with a 10 per cent variability, resulting in a range from $680 million to $810 million. Hydro One provided an estimate of $625 million, with a not-to-exceed price of $683 million.
The NextBridge plan was endorsed by the previous term of Thunder Bay city council and they provided the energy board with 17 letters of stakeholder support, along with 14 Indigenous intervenors in the hearing that backed their plan.
NextBridge project director Jennifer Tidmarsh on Wednesday would not reveal their not-to-exceed price but said the energy board has added new process and their numbers are still being worked out.
“Now it seems the OEB has just come down to two numbers to make the decision on the project, which is disappointing,” Tidmarsh said.
Hydro One has touted their plan as being shorter and less expensive, largely as a result of being able to parallel the existing line through Pukaskwa National Park. NextBridge has been denied by Parks Canada to build a corridor through Pukaskwa, though Tidmarsh said Hydro One has not yet received approval.
Fort William First Nation chief Peter Collins, whose community is one of six First Nations with an equity stake in the project, made it clear it’s not guaranteed that if Hydro One becomes the chosen proponent that it will be easy for the utility to replicate the relationship with NextBridge.
“I think it’s still a process that has to be worked out. It’s not going to be a simple one, as simple as they think it’s going to be,” Collins said.
“It took us almost five-and-a-half years to get us to where we are with NextBridge and they think they’re going to make this happen in a couple of months. Not likely. There’s a lot of work that needs to be done on that front.”
The Indigenous communities have formed an economic development entity to pursue training and contracting opportunities related to the line’s development, which resulted in 253 people being trained for positions that would be required during construction.
NextBridge had planned to start construction in November 2018.
“The thing that hurts us the most is we promised them a job in November,” Collins said. “It’s January now and they’re still not working.”
Tidmarsh said the energy board is expected to make their final decision within a month after the Jan. 31 deadline. If successful, NextBridge could start construction in June with completion expected to take 18 months.
“I think the disappointment is definitely (felt by) the people up here,” Tidmarsh said. “We’ve been waiting for five-and-a-half years for economic growth. The East-West Tie brings reliability to the system. The East-West Tie brings jobs, helps increasing mining load and forestry load.”
