The Ontario Energy Board approved Hydro One’s proposed $16.2-million reconstruction of a London-area transmission line, finding the work was needed to accommodate forecast electricity demand.
The April 21, 2026 decision in Hydro One Networks Inc., EB-2026-0003 grants conditional permission to rebuild approximately four kilometres of the existing 230-kilovolt M31W line between Buchanan Transformer Station and Old Victoria Road Junction.
Hydro One’s evidence put the additional supply capability at approximately 300 megawatts. The order also permits minor changes to protection settings at Buchanan and Middleport transformer stations. It is permission to carry out the work, not a finding that construction has been completed.
Forecast demand supported reinforcement
Hydro One applied on January 30, 2026. After the board issued a public notice giving people an opportunity to request a hearing, no such requests were received. The application was decided without a hearing, under delegated authority.
The board’s public-interest review focused on consumer prices, reliability and quality of service, together with the statutory economic-growth consideration. It also had to be satisfied about the forms of agreements offered to affected landowners.
The need for the project rested on the Independent Electricity System Operator’s planning work for southwestern Ontario. Hydro One said reinforcing the existing line would relieve transfer constraints and provide part of the next increment of supply needed in the London area.
The planning assessment had considered alternatives involving wind generation and battery storage, comparing cost, resource adequacy and transmission feasibility. The evidence identified transmission reinforcement as the most practical and cost-effective response.
The board accepted that the project was required to maintain reliable supply as demand grew. It also accepted Hydro One’s choice between two conductor designs, finding the selected option more economical when capital costs and electricity losses were considered together.
Cost estimate accepted, not a guaranteed final bill
The $16.2-million estimate included approximately $800,000 for removals. It was a Class 3 estimate, with an indicated range of 20 per cent below to 30 per cent above the estimate.
Hydro One identified potential scheduling, subsurface and procurement risks, and described steps including outage planning, preliminary testing and early procurement of long-lead materials.
The board found the estimate reasonable. In particular, the project’s cost per kilometre was near the lower end of the range shown by comparable transmission projects.
It approved allocating the costs to the transmission network pool. The project addressed broader system needs rather than a particular customer’s connection request, so Hydro One did not propose a contribution from a specific customer.
The board also accepted evidence of an expected small reduction in the network service rate over a 25-year horizon, conditional on the demand forecast supporting the project. That was a forecast used to assess the proposal, not a guaranteed reduction in every customer’s electricity bill.
Other approvals and land arrangements remain necessary
The existing corridor is on provincially owned land over which Hydro One has a statutory easement. No new permanent corridor rights were contemplated. Temporary access across private land could still be needed for work areas or access roads, with those rights to be negotiated as required.
The board approved the proposed forms of off-corridor access and damage-claim agreements. That approval does not itself establish that every necessary agreement has been signed.
The conditions require Hydro One to fulfil the system and customer impact assessment requirements and obtain all other necessary permits, approvals and rights. The company must report material project changes and confirm completion after construction.
Unless the board orders otherwise, the permission expires 12 months after the decision if construction has not begun before then. The ruling therefore authorizes a defined reinforcement project subject to continuing conditions, rather than replacing the other approvals needed to build it.
