The ITC Lake Erie Connector Project Included in Ontario's 2017 Long-Term Energy Plan

NOVI, Mich., Oct. 26, 2017 /PRNewswire/ -- ITC Lake Erie Connector LLC commends the Ontario Government on its 2017 Long-Term Energy Plan and charting a path for a more reliable, efficient and affordable energy future for the province, including a focus on reforming the energy market to support import and export of energy between jurisdictions. 

ITC Lake Erie Connector LLC, a wholly-owned subsidiary of ITC Holdings Corp., the largest independent electricity transmission company in the United States, is responsible for the Lake Erie Connector project. The ITC Lake Erie Connector is a proposed 1,000 MW, bi-directional, high-voltage direct current (HVDC) underwater transmission line that would provide the first direct link between the markets of the Ontario Independent Electricity System Operator (IESO) and PJM Interconnection LLC (PJM). The project would enable transmission customers to more efficiently access energy, capacity and renewable energy opportunities in both markets.

"The plan laid out by Energy Minister Thibeault and his Government today underscores the importance of creating a reliable, sustainable, and affordable energy market, of which the Lake Erie Connector is a key component," says Terry Harvill, Ph.D., president, ITC Grid Development.

"As the only contracted transmission project included in the 2017 Long-Term Energy Plan, this two-way line will provide the first direct power connection between Ontario and the the PJM energy market, which is comprised of 13 states in the Eastern U.S. The Lake Erie Connector will open the door to electricity trading between these markets, working to improve the security and reliability of both energy grids."

Under the project's funding model, generators and electricity traders who transmit electricity and related products over the line will pay, thereby not impacting the transmission rates paid by Ontario ratepayers.

"Building the infrastructure to support this large-scale electricity trade ensures stability and affordability of energy for Ontarians, ensuring the province can import clean energy when needed and export it when it's able to," adds Harvill. "We thank Minister Thibeault and his Government for recognizing the value, flexibility, carbon-reduction and many other benefits that the Lake Erie Connector project will provide."

The ITC Lake Erie Connector project received its final major permit approval from the U.S. Army Corps of Engineers (USACE) on October 16, 2017 and the project is now fully permitted in both the United States and Canada. ITC previously received a Presidential Permit from the U.S. Department of Energy as well as major permits from Canada's National Energy Board and the Pennsylvania Department of Environmental Protection.

Project Status
Remaining milestones for the ITC Lake Erie Connector include completing project cost refinements and securing favorable transmission service agreements with prospective counterparties, after which ITC would proceed with construction. ITC has completed the necessary system impact studies in IESO and PJM, signed service agreements with the manufacturers of converter stations and the submarine cable, and secured nearly all land necessary for the terrestrial cable route, converter stations and construction laydown areas. The company has held or participated in numerous public consultations in Ontario and Pennsylvania – the respective terrestrial points of the line – to discuss the project and gather community input.

Project Specifications
The ITC Lake Erie Connector is a proposed +/- 320 kV HVDC bi-directional transmission line, approximately 73 miles in length, that would connect converter stations located in Erie, Pennsylvania and Nanticoke, Ontario. A 345 kV alternating current (AC) line would connect the Erie converter station to Penelec's existing Erie West substation, while a 500 kV AC line would tie the Nanticoke converter station to Hydro One's Nanticoke substation. The majority of the transmission line would be buried beneath Lake Erie or underground using existing roadway rights-of-way.

About ITC Holdings Corp. 
ITC is the largest independent electricity transmission company in the United States. Based in Novi, Michigan, ITC invests in the electric transmission grid to improve reliability, expand access to markets, allow new generating resources to interconnect to its transmission systems and lower the overall cost of delivered energy. Through its regulated operating subsidiaries ITC Transmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains, ITC owns and operates high-voltage transmission infrastructure in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma, and in development in Wisconsin. These systems serve a combined peak load exceeding 26,000 megawatts along approximately 15,800 circuit miles of transmission line, supported by 670 employees and nearly 1,000 contractors across our expanding footprint. 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 further information visit www.itc-holdings.com. ITC is a subsidiary of Fortis Inc., a leader in the North American regulated electric and gas utility industry. For further information visit www.fortisinc.com.

Cautionary Language Concerning Forward Looking Statements
This document contains certain statements that describe our management's beliefs concerning future business conditions 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 and wherever possible, we have identified these forward-looking statements by words such as "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 other things, the risks and uncertainties disclosed in our annual report on Form 10-K and our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. 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. They 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 document 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. Actual future results may vary materially. 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.