Hydro One says it has entered into an agreement to purchase an approximately 48 per cent interest in the East-West Tie Limited Partnership.

The East-West Tie Limited Partnership owns the East-West Tie Line, a 450-kilometre, 230 kV double-circuit transmission line, which spans from Wawa to Thunder Bay, along the north shore of Lake Superior.

Hydro One purchased its share from affiliates of OMERS Infrastructure Management Inc. and Enbridge Transmission Holdings Inc.

Hydro One has agreed to purchase its interest in the partnership for $257 million in cash, subject to customary adjustments. The transaction results in a partnership with the remaining owners of the East-West Tie Line – the Bamkushwada Limited Partnership, a consortium of six First Nations, and affiliates of NextEra Energy Canada, LP who own approximately 3.5 per cent and 48 per cent respectively.

"Hydro One has a long history of owning and operating transmission infrastructure in northern Ontario," said David Lebeter, President and CEO, Hydro One. "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 East-West Tie Line was built in partnership with the Bamkushwada Limited Partnership, which is jointly owned by 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.

The line has a rate base of approximately $880 million and connects northwest Ontario communities and industries to Ontario's electricity grid. The transaction is conditional upon satisfaction of customary closing conditions.