Newfoundland and Labrador Hydro is asking the provincial utilities regulator to approve the construction of a new $291.7 million transmission line from Bay d'Espoir to the Avalon Peninsula.

The energy company says the line would make the system more stable once a link to the island is in full operation from Muskrat Falls in Labrador.

The utility wants to bring the line in service for 2018.  Hydro company vice-president Rob Henderson said Muskrat Falls will significantly change the power system.

He says upgrading the corridor between the Bay d'Espoir and western Avalon terminal stations is needed to provide additional capacity and to relieve congestion.

The company says the line would also improve the supply of energy to growth areas in the Avalon region.  It has filed its application for the 230 kilovolt line with the Board of Commissioners of Public Utilities.

The $7.7 billion Muskrat Falls hydro project was originally scheduled to provide power in 2017, although Nalcor Energy recently said there could be a delay in finishing its project.