Ontario’s government has formally designated Hydro One Networks Inc. as the developer and constructor of a new priority 500‑kV transmission line that will span roughly 300 kilometres from the Hanmer Transformer Station in Sudbury to the Essa Transformer Station near Barrie. The line is slated to be in service in 2032 and will include expansions of the associated station facilities as well as the parallel development of a second single‑circuit 500‑kV line.
The project is a cornerstone of Ontario’s Integrated Energy Plan, which aims to meet a projected 75 % increase in electricity demand by 2050. By extending high‑voltage capacity from northern Ontario to the Greater Toronto Area, the line will support new generation projects, enhance grid reliability, and provide a flexible backbone for future renewable and industrial developments.
Hydro One will partner with nearby First Nations through its Equity Partnership Model, offering eligible communities a 50 % equity stake in the transmission component. The partnership will involve the Chippewas of Rama First Nation and the Energy Corridor First Nations, who have previously invested in similar projects. The model is designed to accelerate approvals, foster reconciliation, and create economic opportunities for Indigenous communities.
Financially, Hydro One reported 2024 revenue of $8.5 billion and assets of $36.7 billion. In Q4 2025 the company posted earnings per share of C$0.70 on revenue of C$1.22 billion, demonstrating stable, regulated returns. The Sudbury‑Barrie line is expected to add to Hydro One’s rate base, supporting future capital investment and long‑term revenue growth.
The estimated cost of the Sudbury‑Barrie line is between $1.5 billion and $1.6 billion, comparable to a similar Barrie‑Hanmer proposal. The second 500‑kV line’s in‑service date is still under review by the Independent Electricity System Operator, but its development will further enhance system flexibility.
Hydro One’s President and CEO, David Lebeter, said the line will “unlock opportunities to add electricity capacity to the system and strengthen the backbone of the grid.” The announcement has been well received by market participants, with analysts noting the project’s alignment with Ontario’s long‑term energy strategy and Hydro One’s strong financial position.
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