The utility says it wants the new equipment up and operating next to the Holyrood power generating station before the end of the year.
The provincial Public Utilities Board will review if the utility can recover the cost from ratepayers.
The move comes in the middle of a power system review by the regulator, including a look at the utility's ability to offer a reliable power supply next winter.
There were outages in January across Newfoundland that at one point left 190,000 customers in the dark.
The utility has issued a public tender for proposals with a close date of April 21.