The Ontario Power Authority says getting 21 First Nations off diesel generation and onto the provincial power grid will save a billion dollars over the next 40 years.

The draft Remote Community Connection Plan outlines the business case for building power lines in the remote north.

The report states: "The $1 billion cost savings reflects only the avoidable cost of diesel fuel and system expansion. It does not reflect the additional economic, societal, developmental and environmental benefits that would also arise from transmission connection of remote communities."

The federal government would reap the majority of the savings, as it is currently the major source of funding for diesel generation in First Nations.

Customers could see savings

However, all electricity customers in Ontario would benefit through a reduction in the rural and remote subsidy portion of their bills, according to Power Authority planning analyst Stephanie Aldersley.

"By having transmission connection we're reducing some of the need for that cost so that's how Ontario customers stand to benefit from the connection," she said.

Aldersley said there could be additional cost savings if a proposed mining development in the area moves ahead, but the plan doesn't rely on it.

"The main point of the remote connection report is that it is economic to connect all 21 remote communities, whether or not the Ring of Fire connects," she said.

Renewables ruled out

The Power Authority did consider renewable generation such as wind and solar, but found neither could meet all the demands of the communities.

"Transmission connection is more environmentally friendly, as it will reduce more diesel consumption," Aldersley said.

However, wind and solar will be considered as a supplementary power source for the four First Nations that can't be economically connected to the grid, according to the report. They are Fort Severn, Peawanuck, Gull Bay and White Sands First Nations.

Construction of the power lines is expected to take seven to ten years.

Wataynikaneyap Power, a First Nations-owned transmission development company, is already working on routing for the connections in the Pickle Lake and Red Lake areas.