HVDC Merchant Transmission Project to Create First Direct Connection
Between Canada IESO and United States PJM Markets
NOVI, Mich., June 1, 2015 – ITC Lake Erie Connector LLC, a wholly-owned subsidiary of ITC Holdings Corp., the largest independent electricity transmission company in the United States, today announced it has filed a major permit application with the U.S. Department of Energy (DOE) for the ITC Lake Erie Connector merchant transmission line. The purpose of the DOE filing is to obtain the Presidential Permit necessary for international border-crossing projects.
The ITC Lake Erie Connector is a proposed 1000 MW, bi-directional, High-Voltage Direct Current (HVDC) merchant transmission line that will provide the first direct link between the markets of the Ontario Independent Electricity System Operator(IESO) and PJM Interconnection, LLC (PJM). The ITC Lake Erie Connector will enable transmission customers to more efficiently access energy, capacity, and renewable energy credit opportunities in both markets.
“This project will create a new energy transmission interconnection between the PJM and IESO markets, helping improve the security, reliability and capacity of these energy grids,” said Terry Harvill, Ph.D., vice president of International and Merchant Development, ITC Holdings Corp. “The Lake Erie Connector offers compelling market opportunities by providing a more direct, efficient and controllable path for energy and capacity to flow between the two systems, and it can facilitate the export of clean energy from Ontario to PJM to address potential environmental regulations and Renewable Portfolio Standard requirements in the U.S.”
ITC’s application to the DOE will be available on the project website at WWW.ITCLAKEERIECONNECTOR.COM. This application follows a May 22 filing with Canada’s National Energy Board. ITC continues to perform detailed engineering work and marine and land studies in support of the project, and the company will submit additional environmental and other permit applications to the relevant federal, state and municipal agencies later this year. The company has held or participated in public meetings in Erie County, Pennsylvania and consultation events in Nanticoke, Ontario to discuss the project and gather community input. Additional information regarding the project is available at WWW.ITCLAKEERIECONNECTOR.COM.
The ITC Lake Erie Connector is +/- 320 kV HVDC bi-directional transmission line, approximately 73 miles in length, that will interconnect with converter stations located in Erie, Pennsylvania and Nanticoke, Ontario. A 345kV Alternating Current (AC) underground transmission line will connect the Erie converter station to the existing Penelec ErieWest Substation, while a 500 kV AC line will interconnect the Nanticoke converter station to Hydro One Networks Inc.’s Nanticoke Transformer Station. The majority of the transmission line either will be buried beneath Lake Erie or underground using existing roadway rights-of-way. ITC anticipates receiving all state, federal, and provincial permits for the ITC Lake ErieConnector by Q2 2017, the commencement of construction in 2017, and commercial operation in 2019.
Open Solicitation Process
ITC will commence an open solicitation for transmission capacity on the ITC Lake Erie connector beginning in late June. Interested parties will be able to access an overview of the ITC Lake Erie Connector and a non-disclosure agreement (NDA) on a separate ITC Open Solicitation website. Execution of the NDA will allow interested parties to access additional information regarding the ITC Lake Erie Connector and the open solicitation process. ITC has retained The Brattle Group to serve as an Independent Solicitation Manager to oversee the open solicitation process. If, through the open solicitation process, it becomes evident that the transmission line could be oversubscribed, ITC will explore opportunities to increase the capacity of the ITC Lake Erie Connector. If increasing the capacity is not feasible, ITC will allocate capacity to those customers who value it most highly as reflected by a customer’s offered rates, terms, and conditions.
About ITC Holdings Corp.
ITC Holdings Corp. (NYSE: ITC) is the largest independent electric transmission company in the United States. Based in Novi, Michigan, ITC invests in the electric transmission grid to improve reliability, expand access to markets, lower the overall cost of delivered energy and allow new generating resources to interconnect to its transmission systems. Through its regulated operating subsidiaries ITCTransmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains, ITC owns and operates high-voltage transmission facilities in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, serving a combined peak load exceeding 26,000 megawatts along approximately 15,600 circuit miles of transmission line. ITC’s grid development focus includes growth through regulated infrastructure investment as well as domestic and international expansion through merchant and other commercial development opportunities. For more information, please visit ITC’s website at WWW.ITC-HOLDINGS.COM.
Safe Harbor Statement
This press release contains certain statements that describe our management’s beliefs concerning future business conditions, plans and prospects, growth opportunities and the outlook for our business and the electricity transmission industry based upon information currently available. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as “will,” “may,” “anticipates,” “believes,” “intends,” “estimates,” “expects,” “projects” and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among others, the risks and uncertainties disclosed in our annual reports on Form 10-K, quarterly reports on Form 10-Q and other filings made with the Securities and Exchange Commission.
Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward-looking statements may turn out to be wrong. Forward-looking statements speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this release and in our annual and quarterly reports will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise.
Media contact: Robert Doetsch, 248-946-3493, RDOETSCH@ITCTRANSCO.COM
Investor/Analyst contact: Stephanie Amaimo, 248-946-3572, SAMAIMO@ITCTRANSCO.COM
Source: ITC Holdings Corp.