Hydro to invest $271.4 million in capital projects in 2017 to strengthen aging grid

Newfoundland and Labrador Hydro (Hydro) plans to invest $271.4 million next year in capital projects as part of its ongoing capital plan to strengthen the provincial power grid and boost reliability for customers

Hydro filed its annual Capital Budget Application for 2017 on July 29 with the Newfoundland and Labrador Board of Commissioners of Public Utilities (PUB). The application details 105 projects focused on improving reliability by updating and replacing aging infrastructure. It includes both new and multi-year projects previously approved by the Board.

“We are continuing to focus on renewing and adding to our electricity fleet in order to support electricity demand,” said Jim Haynes, President, Newfoundland and Labrador Hydro. “These investments are required to improve and replace facilities that were built 30 to 40 years ago , everything from upgrading dams and generating stations, to modernizing major transmission routes.”

“We are committed to keeping our electricity equipment in good shape and winter ready,” Haynes added. “We understand that customers are depending on us to keep the lights on and we take that responsibility seriously.”

As well as being the primary generator of electricity in the province, Hydro delivers power directly to 38,000 customers in over 200 coastal and rural communities on the island and Labrador. This application includes projects to update the distribution systems and remote diesel plants in the province’s most isolated service areas.

The capital budget application is a routine annual filing in which Hydro seeks the Board’s approval to complete ongoing maintenance and yearly capital upgrades. The Board examines the application and intervenors are given the opportunity to ask questions and submit statements. The full application can be found on the PUB’s website here

Backgrounder: 2017 Capital Budget Application Highlights

Island Generation – $25.6M. Key projects include:

  • $5.4M will be invested in hydroelectric generation infrastructure, including control structure refurbishment in the Bay d’Espoir system, and water system replacements in Bay d’Espoir and Cat Arm.
  • $7.2M will be invested at Holyrood Thermal Generating Station; major projects include the refurbishment of Unit 2 turbine valves and the overhaul of several critical pumps.
  • $1.8M will be invested in the Hardwoods and Stephenville gas turbine life extension projects.

Transmission and Rural Operations – $235.6M. Key projects include:

  • $150M will be invested in the new transmission line from Bay d’Espoir to Western Avalon station, including two terminal station expansions.
  • $17.5M will be invested in the new transmission line between the Soldiers Pond and Hardwoods terminal stations.
  • $10.8M will be invested in the second year of a five- year accelerated breaker replacement program across the province.
  • $10.8M invested in the Terminal Station Modernization and Refurbishment Program (this new program groups 15 smaller, individual projects under one program).
  • $2.4M in the continuation of Hydro’s comprehensive wood pole transmission line management program.
  • $1.5M in transmission line refurbishment and insulator replacements across the province.


  • $4.3M to provide service extensions to new customers on the Labrador Interconnected system and other service areas.
  • $3.8M on annual pole maintenance upgrades across Hydro’s distribution system, including the replacement of deteriorating poles, corroded and damages conductors and other equipment damaged by weather or salt.

Rural Generation

  • $2.1M to overhaul ten diesel engines in rural communities serviced by power diesel generation.
  • $660,000 for the first year of a multi-year project to replace diesels at Charlottetown and Port Hope Simpson.