Michigan Thumb Loop Transmission Line Project

Transcription

1 Michigan Thumb Loop Transmission Line Project ITC Holdings Corp. Simon Whitelocke VP., Regulatory and External Affairs October 30, 2013

2 What is Transmission? The electric transmission system is the network of high voltage lines and towers that transfer electric energy in bulk from power generating plants to substations serving communities and businesses. ITC s role in the Power Flow Process

3 ITC: A Transmission-only Electric Utility Largest fully independent, transmission-only utility in U.S. Fully regulated, independent transmission model creates a unique approach to infrastructure Singular focus on transmission system performance, planning and operations Aligns with national policy objectives to facilitate investment in regional and inter-regional transmission Regulated operating subsidiaries include ITCTransmission, Michigan Electric Transmission Company, ITC Midwest and ITC Great Plains More than 15,000 miles of transmission facilities in five states, serving over 25,000 MW of peak load Approximately 500 employees and 500 skilled labor contractors Capital investments of ~$3.2 billion since inception in 2003 Projected investments of ~$4.2 billion 2012 through 2016

4 Origin Public Policy Initiative Result of Michigan s Clean, Renewable and Efficient Energy Act, Public Act 295 of PA 295 created the Wind Energy Resource Zone Board to study and identify regions with the highest wind potential. Board s final report identified Region 4 located in the state s Thumb area as displaying the highest potential for wind energy in the state. ITC submitted a plan for additional transmission lines needed to accommodate future wind development projects in Region 4. February 25, 2011: Michigan Public Service Commission granted an expedited siting certificate authorizing ITC to construct the line.

5 Overview Project Overview Will serve as the backbone of a system designed to meet requirements set by the Wind Energy Resource Zone Board. 140 miles of double-circuit 345,000 volt (345 kv) lines spanning Michigan's Thumb Region. Four New Substations One Major Substation Expansion Construction in three phases Current cost estimate: $510 M.

6 Key Dates & Milestones Oct. 2008: Governor signs Michigan PA 295 creating Wind Energy Resource Zone Board Oct. 2009: Final Report of the Michigan Wind Energy Resource Zone Board Jan. 2010: Michigan Public Service Commission (MPSC) designates Thumb area as primary wind energy resource zone Aug. 2010: ITC files siting application with MPSC Feb. 2011: MPSC approves route Mar. 2011: Right-of-way negotiations begin with landowners Oct. 2011: Bauer substation construction begins April 2012: Phase I Line construction begins July 2012: Rapson substation construction begins Mar. 2013: Phase II Line construction begins Aug. 2013: Fitz substation construction begins Sept. 2013: Phase I in service Q1 2014: Construction begins on Phase III, Banner substation 2015: Project completion

7 Physical Description Built primarily with tubular steel monopoles in a double-circuit arrangement -- three conductors for each circuit on either side of the pole. Steel lattice towers used for large angle applications. Structure height typically 100 to 150 feet. Average span between structures approx. 800 to 1,100 feet. Additional lines and facilities (substations, interconnections) will be added as wind generators go into service and connect to the backbone system

8 Benefits Previous system capacity in Thumb region: 375 megawatts (MW) Capacity after project completion: 5,000 MW Economic Impacts: Total U.S. Gross Domestic Product (GDP) economic impact: $908 M Michigan GDP: $366 M Direct effect employment impact in the Michigan market area: 320 jobs Other project benefits: Short-term: Partnerships with local contractors & vendors; worker spending on food, lodging, transportation, laundry, other needs Longer term: Future property taxes Additional power delivery capacity for future economic development, helping existing businesses grow, and helping attract new businesses, jobs and investment to the region

9 Drivers Public policy facilitate development & delivery of renewable energy to meet PA 295 s mandated RPS of 10% by 2015 Replace outdated local infrastructure and strengthen the regional grid Increase power delivery to the Thumb region for future economic development

10 Participation Primarily via ITC s Supplier Alliance Philosophy Focuses on long-term relationships Enables continuous process improvements Captures cost savings for customers Permits standardization of design, inventory, spare parts, and creates opportunities for contractor efficiencies for maintenance and capital construction Relies on environmental consulting and engineering firms and transmission construction contractors to site, permit and build major new transmission facilities 10

11 Contact information Mark Tollensdorf Director, Supply Chain (248)

12 Questions Q & A