Hydro One Limited (TSX: H) Acquires 48% Stake in East-West Tie Line from OMERS and Enbridge

Highlights

• Hydro One to acquire 48% of the East-West Tie Line for $257 million in cash
• The purchase strengthens Hydro One's transmission infrastructure in northern Ontario
• Partnership includes collaboration with First Nations and NextEra Energy Canada

Hydro One Limited has announced that its wholly-owned subsidiary, Hydro One Networks Inc., has entered into an agreement to purchase a 48% interest in the East-West Tie Limited Partnership. The purchase, valued at $257 million in cash, will allow Hydro One to expand its footprint in Ontario's transmission network and strengthen its position in the province’s energy infrastructure. The transaction, subject to customary adjustments, involves acquiring the stake from affiliates of OMERS Infrastructure Management Inc. (OMERS) and Enbridge Transmission Holdings Inc. (Enbridge).

The East-West Tie Limited Partnership owns the East-West Tie Line, a 450-kilometre, 230 kV double-circuit transmission line regulated by the Ontario Energy Board (OEB). The line spans from Wawa to Thunder Bay, running along the north shore of Lake Superior, and serves as a critical piece of infrastructure that supports the delivery of electricity across northern Ontario. The acquisition sees Hydro One join a partnership with the remaining stakeholders, which include the Bamkushwada Limited Partnership, a consortium of six First Nations, and affiliates of NextEra Energy Canada, LP, who own approximately 3.5% and 48%, respectively.

David Lebeter, President and CEO of Hydro One, commented, "Hydro One has a long history of owning and operating transmission infrastructure in northern Ontario. By investing in this critical transmission infrastructure, we not only support the reliable delivery of electricity but also contribute to the long-term economic opportunities and shared prosperity in the region."

The purchase of this strategic asset aligns with Hydro One’s mission to enhance its transmission network and contribute to Ontario's energy reliability and sustainability. Hydro One, which already owns and operates more than 90% of Ontario's transmission network, is well-positioned to leverage its extensive experience to manage and operate the East-West Tie Line, ensuring the continued delivery of electricity across northern Ontario.

Michael Hill, Executive Vice President and Global Head of OMERS Infrastructure, expressed pride in the 12-year partnership and emphasized the strategic importance of Hydro One’s involvement in the continued development and operation of the East-West Tie project. "Hydro One, a prominent Canadian company that already owns and operates more than 90% of Ontario's transmission network, was considered the best strategic partner to support the company's continued reliable operations," he said.

Matthew Akman, Executive Vice President of Corporate Strategy and President of Power at Enbridge, also praised the deal, stating, "Enbridge is pleased to have participated alongside our partners in developing and bringing into service the East-West Tie project, with a focus on Indigenous inclusion and participation. Hydro One's experience and ownership of other Ontario transmission assets will provide value to the partnership."

The East-West Tie Line project has been developed in collaboration with the Bamkushwada Limited Partnership, which is jointly owned by several First Nations, including Fort William First Nation, Michipicoten First Nation, Biigtigong Nishnaabeg (Ojibways of the Pic River First Nation), Pays Plat First Nation, Netmizaaggamig Nishnaabeg (Pic Mobert First Nation), and Red Rock Indian Band. This collaboration reflects Hydro One's ongoing commitment to working with First Nations communities and supporting their involvement in critical infrastructure development.