The power utilities in New Brunswick and Nova Scotia want to build new transmission lines to more than double the capacity to ship electricity between the two neighboring provinces.

The proposed 500-megawatt connection would run between southern New Brunswick and Nova Scotia's Colchester County, adding to the existing 300-megawatt connection.

“This new transmission capacity is a crucial piece of infrastructure that will open the door for new renewable energy projects in New Brunswick and power exports to Nova Scotia,” said New Brunswick Premier Shawn Graham.

Graham and Nova Scotia Premier Darrell Dexter were joined by officials of NB Power and Nova Scotia Power for the announcement Tuesday in Fredericton.

“Historically, Nova Scotia was an energy island, and now, because of this project, the province will have a stronger grid that can import and export power,” said Dexter. “Businesses and Nova Scotians from one end of the province to the other will have stable energy prices, which will result in more affordable power in the foreseeable future.”

NB Power and Emera – the parent company of Nova Scotia Power – will work together to determine details such as cost and ownership of the lines.

The project would need environmental impact assessments and the approval of each province's utility board.

The announcement follows last week's meeting of the Atlantic premiers in Massachusetts where they committed to greater co-operation on regional energy projects.

The New Brunswick government announced last year that it wanted to sell NB Power to Hydro-Quebec but it faced a public outcry and later watered down the deal to a $3.2-billion plan to sell major assets of the utility.

Those talks collapsed in March, and since then, Graham's Liberal government has been seeking regional collaboration on energy projects as it pitches New Brunswick as an energy hub for the region.

At the time, Dexter said the deal's collapse presented an opportunity to work with New Brunswick to strengthen the regional power grid.