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Canada’s NEB approves construction of ITC Lake Erie Connector transmission project

EBR Staff Writer Published 20 January 2017

Canada’s independent federal regulator National Energy Board (NEB) has approved the development of the proposed 1,000MW ITC Lake Erie Connector transmission project.

Approval for the 117km project, which allows transferring electricity between Ontario, Canada and Pennsylvania, US, is subject to 42 conditions including environmental protection, safety and socio-economic matters.

The project, which is being built by US power transmission firm ITC Holdings subsidiary ITC Lake Erie Connector, will be the first direct link connecting the markets of the Ontario Independent Electricity System Operator (IESO) and PJM Interconnection, a regional transmission organization in the US.

The regulator said that the project will allow greater flexibility for the two energy markets to meeting energy needs. It will also increase market efficiency for Ontario and its rate payers.

Additionally, the board determined that the project will have no significant adverse environmental effects.

The project, which will transfer electricity between Nanticoke, Haldimand County, Ontario and Erie County, Pennsylvania, United States of America crossing Lake Erie, has recently secured presidential permit from the US Department of Energy (DOE).

The 49km Canadian portion of the project is estimated to cost $543.5m. The project is expected to generate $21.4m in employment income, $38.2m in gross domestic product, $8.8m in government tax revenues, and a total of 331 jobs in the region.

The line is expected to enable more efficiently access energy, capacity, and renewable energy credit opportunities in both markets for transmission customers.

ITC is planning to commence construction of the project and complete in 2020.