Enbridge Inc. (ENB - Snapshot Report), NextEra Energy Canada and Borealis Infrastructure, through a joint venture (JV), are aiming to develop a new power transmission line in northern Ontario.
Calgary-based pipeline and utility giant Enbridge and Borealis Infrastructure, a unit of the Ontario Municipal Employees Retirement Service, are looking for regulatory approval to buy stakes in Upper Canada Transmission, Inc − an affiliate of NextEra Energy Canada.
The NextEra subsidiary intends to bid for the building of the Ontario East-West Transmission Tie through a JV − NextBridge Infrastructure. The 400-kilometer, 230-kilovolt line is expected to stretch between Thunder Bay and Wawa, Ontario, and will come on stream as early as 2017. It will cost around $600 million, as per an Ontario Power Authority report.
This planned venture will enhance the consistency, allow for the retirement or conversion of northern coal facilities as well as boost the potential development of renewables in the region. Upon selection, the conglomerate seeks to develop, construct, own and operate the new line under the regulatory supervision of the Ontario Energy Board.
NextEra Energy Canada is a wholly owned, indirect affiliate of NextEra Energy Inc. (NEE - Analyst Report) − the Juno Beach, Florida-based public utility holding company engaged in the generation, transmission, distribution, and sale of electric energy.
The parent company of Enbridge Energy Partners L.P. (EEP - Analyst Report), Enbridge Inc. is a leader in delivering energy. It operates in Canada and the U.S. and has the world's longest crude oil and liquids transportation system. Enbridge is involved in natural gas gathering, transmission and midstream businesses and is also engaged in power transmission. The company provides distribution services in Ontario, Quebec, New Brunswick and New York State. As a generator of energy, the company is expanding its interests in wind and solar energy, geothermal and hybrid fuel cells.
Enbridge currently retains a Zacks #2 Rank, which is equivalent to a Buy rating for a period of one to three months.