Construction begins on major B.C. transmission line aimed at powering northwest

Construction is underway on a major electricity transmission project in northern British Columbia that the federal and provincial governments say will inject billions into the provincial economy, drive new industrial development and assert Canada's sovereignty in the face of U.S. threats.   

The North Coast Transmission Line expansion will link Prince George to Terrace near the North Coast, and is expected to more than double electricity supply to that region. 

The transmission line, which was referred to the federal major projects office in November 2025 for possible fast-tracking, is expected to power big initiatives in the works such as the Ksi Lisims liquefied natural gas facility and mines in B.C.'s Golden Triangle near the Alaskan border. 

"This has gone from a concept to shovels in the ground in an incredibly short period of time," Tim Hodgson, the federal natural resources minister, said in an interview.

"It's showing what happens when the federal, the provincial and local government, in partnership with First Nations, agree on a shared strategy to build Canada.

"It shows what Canadians can do, and that's so important at this challenging time in the world."

The governments estimate the power expansion will contribute $10 billion a year to B.C.'s economy, spur 9,700 jobs and generate $950 million in municipal and provincial revenue. 

It can also help strengthen Canada's position as the trade turmoil intensifies with its southern neighbour, B.C. Premier David Eby and Hodgson told a news conference in Prince George, B.C., on Thursday. 

"It's a significant part of the kind of country that we are trying to build," Eby said, adding the U.S. government has made clear it would like to "break us economically so that they can take us over as the 51st state."

That's why, the premier said, "we're going to use our resources and our strength and what we do well to ensure that we are growing and prospering and diversifying not just away from the United States ... but building the kind of country that delivers what the world wants and needs."

The Canadian and U.S. power grids are deeply integrated and, on any given day, a region can be an importer or an exporter. The ability for B.C. mines and other industrial players to source more of its electricity domestically provides for more cost certainty and reduces reliance on imported diesel to fuel their operations, Eby said. 

Hodgson said that when it comes to the trade war with the United States: "I always live by the motto of 'don't get mad, get even.'" 

"Nothing would make me happier than when the United States asks us for more electricity to say, 'You know what? We've got a lot of mines we need to develop in northern British Columbia. We have a lot of the cleanest LNG in the world. 

"Nothing would make me happier than to say, 'You know what? We're going to use all our electricity here.'" 

Charlotte Mitha, chief executive of BC Hydro, said the provincial utility is sourcing all the materials it can from Canada during construction, though some specialty equipment may have to come from Asia. 

"No stone will go unturned on that, and we expect to have almost everything supplied from Canadian sources, from a materials and equipment perspective," she said. 

"We are anticipating very, very, high Canadian content — as high as we can get — and we're prepared to make the tough decisions on that, even if it means having to re-look at schedules." 

The power line expansion's first phase consists of a 165-kilometre stretch from Prince George to near Fraser Lake, which is targeted for completion in 2030. A second phase connecting to Terrace is set to be completed in 2032. 

The federal and provincial governments agreed in July to commit a combined $3.9 billion to the project. The project has also been supported by a loan of close to $140 million from the Canada Infrastructure Bank to BC Hydro for fast-tracking preconstruction work to expedite the groundbreaking.

The B.C. government said in a news release that co-ownership agreements with First Nations are expected to be finalized by the end of this year. 

“Today represents a new beginning for our region, our shared economy and our shared alignment of values that move strong economy-building projects forward," said Chief Dolleen Logan of the Lheidli T’enneh First Nation. 

This report by The Canadian Press was first published Sept. 3, 2026.

By Lauren Krugel | Copyright 2026, The Canadian Press. All rights reserved.