U.P. Energy Summit February 16, 2017 Brett French, External Affairs Manager atcllc.com
Overview ATC s Value Proposition Reliability Metrics Project updates Q&A atcllc.com 2
Providing Value to our Customers ATC provides value by: Delivering comparable service to all customers Improving upon system reliability Increasing transfer capacity (intra/inter-footprint) Interconnecting new generators and loads Improving upon the performance of MISO s Energy Market Developing solutions that meet the challenges of today s dynamic and evolving environment ATC is an enabler, facilitator and go-to energy partner! atcllc.com 3
Providing Value to our Customers By the Numbers Import Capacity into the U.P. has tripled 2001: ~200 MWs at system peak 2016: ~600 MWs at system peak CapEx (2001 2016) System-wide: ~$4.9B Michigan: ~$761M (15.5%) 2017 Revenue Requirement of ~$563.3M* Wisconsin: ~$526M (93.4%) Michigan: ~34.7M (6.2%) Illinois: ~$2.6M (0.4%) *Reflects a reduction in ATC s ROE from 12.2% to 10.82% as set by FERC on 9/28/16 in Docket EL14-12 for first the complaint atcllc.com 4
Providing Value to our Customers Enhanced Energy Market Performance atcllc.com 5
Providing Value to our Customers Enhanced Energy Market Performance atcllc.com 6
Providing Value to our Customers Enhanced Energy Market Performance atcllc.com 7
Providing Value to our Customers Improved Reliability *Includes momentary and sustained atcllc.com 8
Providing Value to our Customers Improved Reliability *A sustained outage is 1 minute atcllc.com 9
Project Updates Holmes Old Mead Road 138-kV U.P. Sectionalizing Switches Seney Blaney Park Rebuild 9 Mile 6951 Tap Uprate North Appleton Morgan 345/138-kV Benson Lake Static VAR Compensator (SVC) atcllc.com 10
Holmes Old Mead Road Approved by the MPSC January 2014 Construction began Fall 2014 HOMR placed in service August 11, 2016 Rec trail was completed August 19, 2016 Cost to construct ~$95M atcllc.com 11
Holmes Old Mead Road Project is ~60 miles in length Recreational trail is ~24 miles in length 175 landowner easements 487 steel structures weighing 4,876,235 lbs. 2,050 cubic yards of concrete 335 miles of wire 23,000 cubic yards of crushed limestone aggregate was used to construct the trail The project was constructed by MJ Electric and subcontractors atcllc.com 12
Holmes Old Mead Road Route atcllc.com 13
Holmes Old Mead Road atcllc.com 14
Holmes Old Mead Road atcllc.com 15
U.P. Sectionalizing Switches Objective: To improve reliability, increase operational flexibility and reduce restoration times for unplanned forced events Locations were chosen considering: Load taps without remote sectionalizing Amount of load/number of customers potentially exposed to long outages due to lack of remote sectionalizing Locations were prioritized based on historic performance and experiential data atcllc.com 16
U.P. Sectionalizing Switch Locations atcllc.com 17
Seney Blaney Park Rebuild Project Overview LiDAR Thermal Rating Study Resolves clearance issues that have been identified Asset Renewal Work Improves system reliability lightning strikes and equipment related forced outages Improves upon operational flexibility Seney Wildlife Refuge The existing ROW is very narrow 40 60 wide within the Seney National Wildlife Refuge Currently working with MDOT and the National Forest staff to realign/expand upon the ROW atcllc.com 18
Seney Blaney Park Rebuild atcllc.com 19
Schedule and Cost Construction to begin: December 2017 Targeted In-Service Date: Q3 2018 Estimated cost: $16.1M atcllc.com 20
9 Mile Line 6951 Tap Uprate Project Overview LiDAR study, PLS CADD and engineering analysis was completed on Line 6950 in August 2015 98 clearance issues were noted requiring mitigation 38 mile segment of Line 6950 was targeted for an uprate 9 Mile Line 6951 Tap Scope of work: Replace 117 structures Reframe 44 structures Install 138-kV insulators on 161 structures Replacement structures are designed to accommodate a static wire in the future atcllc.com 21
9 Mile Line 6951 Tap Uprate atcllc.com 22
Schedule and Cost Construction began: July 2016 Targeted In-Service Date: End of Q3 2017 Estimated cost: ~$6.7M atcllc.com 23
North Appleton Morgan 345/138-kV lines Benson Lake 138-kV SVC Approved by the PSCW: May 2015 ACOE permit for Benson Lake issued: August 2016 ACOE permit for NAP-MGN T-lines issued: January 2017 Benson Lake SVC construction began: February 2016 NAP MGN substation work began: June 2016 NAP MGN T-line construction began: February 2017 Target ISD: Q4 2018 Estimated cost: $277M atcllc.com 24
Benson Lake SVC atcllc.com 26
Questions Contact Information: Brett French External Affairs Manager (906) 779-7902 Office (906) 396-1148 Cell bfrench@atcllc.com atcllc.com 27