ITC to Solicit Interest from Qualified Parties for
Capacity on HVDC Merchant Transmission Project
First Direct Connection Between Canada IESO and United States
PJM Markets
NOVI, Mich., June 22, 2015 /PRNewswire/ -- ITC Lake Erie
Connector LLC, a wholly-owned subsidiary of ITC Holdings Corp.,
(NYSE: ITC) the largest independent electricity transmission
company in the United States,
today commenced an open solicitation for interest in transmission
capacity on the ITC Lake Erie Connector line. Beginning today and
through August 21, ITC intends to
solicit expressions of interest from qualified parties for firm
transmission rights at negotiated rates.
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.
"We see sustainable long-term economics in this project, partly
driven by potential environmental regulations and U.S. state
renewable energy mandates," said Terry
Harvill, Ph.D., ITC Holdings Corp. vice president of
International and Merchant Development. "This is an opportunity for
generators and load-serving entities to take advantage of a direct
link between the two markets, avoiding some of the additional
charges they incur from moving power through another system. At the
same time, the power will get to market when they need it there and
at a cost they can predict and rely on. Ultimately, this project
can lower the cost of delivered energy for end-use customers while
at the same time increasing the reliability of both markets," said
Dr. Harvill.
Open Solicitation Process
Interested parties can
access an overview of the ITC Lake Erie Connector and a
confidentiality agreement (CA) on ITC's Open Solicitation website
www.lakeerieconnector-os.com. Execution of the CA 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.
Parties interested in reserving capacity on the ITC Lake Erie
Connector must complete and submit a non-binding "Expression of
Interest" form no later than August
21, 2015. ITC, with assistance from the Independent
Solicitation Manager, will rank prospective customers based on the
following five criteria: (1) desired capacity amount; (2) desired
term length; (3) creditworthiness; (4) financial strength; and (5)
desired start of transmission service. ITC will consider
negotiating only with those parties that are interested in
purchasing at least 50 MW of transmission capacity on the ITC Lake
Erie Connector. Once prospective customers have been identified,
ITC will engage in negotiations with these parties, with the
objective of executing one or more transmission service agreements
based on mutually agreed-upon rates, terms, and conditions. ITC
reserves the right to offer more favorable rates, terms, and
conditions to certain customers, such as first-movers or those
willing to assume greater risk. Any revisions to the open
solicitation schedule or changes to project specifications will be
posted on the website.
Project Specifications and Permits
The 1000 MW ITC
Lake Erie Connector is a +/- 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 345 kV Alternating
Current (AC) underground transmission line will connect the
Erie converter station to the
existing Penelec Erie West 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 filed major permit applications with Canada's National Energy Board on May 22 and with the U.S. Department of Energy
(DOE) on May 29 – the latter to
obtain a Presidential Permit necessary for international
border-crossing projects. ITC has completed the necessary
system impact studies in IESO and PJM, has signed services
agreements with the manufacturers of the converter stations and the
submarine cable, and secured nearly all land necessary for the
terrestrial cable route, converter stations and laydown
areas. ITC anticipates receiving major state, federal and
provincial permits for the ITC Lake Erie Connector by Q2 2017,
commencement of construction in 2017, and commercial operation in
2019.
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.
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SOURCE ITC Holdings Corp.