Lake Erie Link Project Seeks FERC Approval

- TransÉnergie US and Hydro One jointly filed before the Federal Energy Regulatory Commission (FERC) a request for FERC approval for the Lake Erie Link merchant transmission project. The Lake Erie Link project will consist of bi-directional high voltage direct current (HVDC) facilities connecting the transmission grids of Ontario Canada, and the U.S. The project developers requested FERC action on the filing by 31 January 2002.

The Lake Erie Link project will connect the Ontario transmission system and the transmission systems of Ohio and Pennsylvania. Specifically, the project will consist of buried underwater cables under Lake Erie connecting the transmission system in Nanticoke, Ontario with the converter facilities in Springfield, Pennsylvania, and Ashtabula, Ohio. The Lake Erie Link will provide an increase of transmission capability between the electric control areas of the Ontario Independent Electricity Market Operator (IMO), the proposed Alliance Regional Transmission Organization (RTO), and the Pennsylvania-New Jersey-Maryland Interconnection (PJM) of up to 975 MW.

As a result of the advanced HVDC technology to be used by the project, power flows over the project will be fully controllable at a moment's notice, thus enhancing the reliability of the region's transmission system. State-of-the-art materials and environmentally benign installation techniques will ensure that the project's impact on the Lake Erie ecosystem will be minimal and short term in nature.

All transmission capacity over the project will be offered for sale via a non-discriminatory "open season" process, expected to commence in the first quarter of 2002. During the open season, the project developers will offer to all qualified bidders up to 975 megawatts of transmission capability between Ontario and the U.S. in either direction. The open season will ultimately determine the exact size and configuration of the project. Prior to that start of the formal open season process, the project developers will provide preliminary information to potential bidders.

"In addition to enhancing transmission system reliability by providing needed infrastructure investment, the Lake Erie Link project will provide significant benefits to Ontario, Pennsylvania and Ohio in the form of increased competition and electricity trading between these regions," stated Jeffrey Donahue, President and CEO of TransÉnergie US.

"This project is an example of Hydro One's efforts to expand the electricity interconnection capability for buyers and sellers in Ontario and the U.S.," explained Hydro One President and CEO Eleanor Clitheroe. "The new interconnection will be funded totally via the sale of transmission rights with no impact on the regulated cost of transmission service in Ontario, and provide benefits to Ontario electricity customers through better access to out-of-province power suppliers and a more competitive Ontario market." For more information on the project, please visit www.lakeerielink.com.

TransÉnergie US is the U.S. transmission project development subsidiary of TransÉnergie, the transmission division of Hydro-Québec is the provincially owned electric utility in the province of Québec, Canada. TransÉnergie independently manages and operates Hydro-Québec’s extensive high voltage transmission system. Hydro One Inc. is a holding company that operates through its subsidiaries in electricity transmission and distribution, telecom, and energy services business.