ITC Receives Positive Recommendation from Canada’s National Energy Board for Lake Erie Connector Project

HVDC Contracted Transmission Project to Create First Direct Connection Between Canada IESO and United States PJM Electricity Markets

NOVI, Mich., Jan. 20, 2017 /CNW/ -- 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 received a Report from Canada's National Energy Board (NEB) recommending issuance of a Certificate of Public Convenience and Necessity for the ITC Lake Erie Connector transmission line.

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 credit opportunities in both markets.

"This is a significant step in our progress to develop the ITC Lake Erie Connector, and we appreciate the thorough review of our application by the National Energy Board," said Terry Harvill, Ph.D., president, ITC Grid Development.  "This new energy transmission interconnection between the IESO and PJM markets would provide Ontario with access to a new, large export market for excess electricity generation, and in turn this bi-directional line would allow less expensive, clean energy to flow into the province from the U.S. This project also would help improve the security, reliability and capacity of the respective electricity grids," said Dr. Harvill.

The NEB's Report can be viewed on the project website at www.itclakeerieconnector.com. The NEB's recommendation is now before Canada's Governor in Council for final approval of a Certificate of Public Convenience and Necessity, with a decision expected on or before April 19, 2017.

Project Status
In addition to the recommended approval from Canada's National Energy Board, the company has received approval of a Presidential Permit from the U.S. Department of Energy, which is necessary for international border-crossing projects.  Remaining milestones in the project this year include receiving approval from the U.S. Army Corps of Engineers and Pennsylvania Department of Environmental Protection in a joint application, completing project cost refinements and securing favorable transmission service agreements with prospective counterparties, after which ITC would proceed with construction with the goal to place the project in service in late 2020.

ITC has completed the necessary system impact studies in IESO and PJM, signed service 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 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 interconnect with converter stations located in Erie, Pennsylvania and Nanticoke, Ontario.  A 345kV alternating current (AC) underground transmission line would connect the Erie converter station to Penelec's existing Erie West substation, while a 500kV 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, a Fortis company, 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 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 15,800 circuit miles of transmission line with 660 employees and nearly 1,000 contractors across its seven state 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. ITC Holdings Corp. common shares are owned 80.1% by Fortis Inc. and 19.9% by GIC Private Limited. Additional information can be accessed at www.itc-holdings.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 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 "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.