NEW ENGLAND CLEAN POWER LINK

Addison County Regional Planning Commission

NOVEMBER 12, 2014

2

Meeting Goals

1. Provide overview of the New England Clean Power Link with a focus on Lake Champlain and Addison County

2. Provide details on HVDC technology and marine installation techniques

3. Answer questions and receive feedback

3

New England Clean Power Link Project (NECPL)

~$1.2B privately-financed merchant transmission project delivering clean, cost-competitive hydroelectricity to help meet Vermont and New England’s energy needs and emissions goals

1,000 MW HVDC underground/underwater transmission line using existing rights-of-way

Power to serve ~1,000,000 homes while providing significant environmental and consumer benefits

2019 targeted as the in-service date

Experienced management team currently also developing the Champlain Hudson Power Express Project in New York

4

Why Are We Proposing NECPL?

Fuel Source Diversity 2000 > 2012

Nuclear, 31%

Oil, 22% Coal, 18%

Natural Gas, 15%

Hydro/Renewables, 13%

Pumped Storage, 1%

2000 New England Electricity Generation by Source

Source: 2013 ISO-NE Regional Electricity Outlook

Nuclear, 31%

Oil, 1%

Coal, 3%

Natural Gas, 52%

Hydro/Renewables, 13%

Pumped Storage, 1%

2012 New England Electricity Generation by Source

Source: 2013 ISO-NE Regional Electricity Outlook

• Approximately 8,000 MW of existing generation at risk of retirement this decade

• New England Governors and Eastern Canadian Premiers have repeatedly called for increased Hydro imports

• Vermont’s 2011 Energy Plan recommends cost-effective transmission projects capable of transporting renewable energy to Vermont and neighboring states

• Project will contribute significantly to Vermont and New England GHG emission reduction goals

• Retirement of VT Yankee opens up transmission capacity

5

Technology

High Voltage Direct Current

• Same technology that is proposed for the Champlain Hudson Power Express

• Proven technology that is ideal for efficiently transporting electricity long distances and underwater and underground with minimal losses

• Two, five to six inch diameter cables are buried/submerged along the entire route; minimal maintenance required

• Cables are solid-state and do not contain liquids

• Converter stations required to convert power from DC to AC

6

CHPE &

Cable Overview

Marine cable - manufactured in Karlskrona, Sweden

7

ABB – Commitment to HVDC

• Pioneer of HVDC technology, delivering the world’s first commercial HVDC link between the Swedish mainland and Gotland island

• Supplier of a significant portion of the world’s HVDC and HVDC Light transmission

− Participant in 70 of the ~145 HVDC transmission links around the world

− Represents ~60,000 MW of the total ~140,000 MW HVDC transmission capacity in operation or under construction worldwide

• World leader in HVDC land and submarine cable systems with more than 130 years of experience in cable manufacturing

HVDC Links Worldwide

8

Marine HVDC is a Proven Technology

HVDC Installations

Project / Date Size Distance Location Details

Neptune / 2007 660 MW 65 miles NJ / NY River / Ocean / Estuary / Parkway

Trans Bay / 2010 400 MW 53 miles SF Bay Land / Estuary / Bay / Land

Cross Sound Cable / 2003 330 MW 24 miles CT / NY Long Island Sound

Existing Infrastructure in Lake Champlain

• Multiple power cables owned by NYPA and VELCO

• Multiple telecom cables

9

Proposed Project Route

Cable Section

Mile Corridor

Type Proposed

Installation

Lake Champlain 0 – 2 Aquatic HDD / Diver Lay

Lake Champlain 2 – 22 Aquatic Jet Plow

Lake Champlain 22 – 73 Aquatic Lay on Bottom

Lake Champlain 73 – 97 Aquatic HDD / Jet or Shear Plow

154 mile proposed route

- 98 miles in Lake (MP 56-96 adjacent to Addison County)

- 57 miles on Land

10

Lake Route Considerations

• Identify Potential Marine Utilities

• Define Bottom & Sub Bottom Conditions

• Avoid Navigational & Installation Challenges

• Mitigate Risks of Encountering Cultural Resources

• Address Logistics

• Minimize Impacts: • Means & Methods • Avoid Archaeological resources • Avoid Fisheries

11

Route Overview

• 97.5 Miles- Alburgh, VT Benson VT • Within the deeper waters of Grand Isle, Chittenden, Addison and Rutland Counties

• (2) Submarine Cables and Control Fiber

• 10 Installation

Segments

• Segment Lengths

Approximately

15 Miles

• Cable Burial at

Depths Less Than

150 Feet

• Surface Lay at Depths

Greater Than 150 Feet

12

Tools: Jet Plow/Shear Plow Burial

• 3 - 4 foot burial depth • Jet Plow uses high pressure water to assist in

trench excavation • Shear plow cuts sediment using tension in tow

cable from cable lay vessel • Install both cables simultaneously in a single

trench

13

Lake Champlain Installation Parameters

Lay Barge:

• Custom built for Lake

Champlain

• Shear Plow: 3,000 ft./ day

• Jet Plow: 4,000 ft./ day

• Bottom Laid: 6,000 ft./ day

• Dynamic positioning

• 3000 HP thrusters

• 6 thrusters

• 2 Supply barges with 15.15

miles of cable per tub

14

Clean Power Link Layers of Safety

Converter Station

Fiber optic

Concrete mats

On bottom >150’; self buried

Buried

Strapped together

Cable

15

• Significant annual taxes for Vermont over the life of project

• Lease payments to VTrans for use of rights-of-way

• Reduced wholesale energy prices for Vermonters and Region which spurs economic growth and lower electric costs to residents and businesses

• Energy diversification for the Region

• Construction and operational jobs for Vermonters and Region

• Significant GHG emission reductions for Vermont and Region

• Buried transmission and “Black Start” capability enhance grid reliability

• Vermont Public Benefit Fund

• 100% financed by private sector

Project Benefits

16

• The Vermont Fund is expected to resemble the structure of the NY Environmental Trust Fund established for Champlain Hudson Power Express

• Basic Tenants of NY Environmental Trust Fund

─ Fund governed by nine public, private and non-profit representatives

─ Funding will go towards projects in the Hudson, East, Harlem Rivers and Lake Champlain

─ Approximately 1/3 of the fund is already dedicated to identified projects

─ Not a mitigation fund

• Vermont Fund expected to fund projects important to Vermonters

─ Assistance with phosphorous clean-up in Lake appears to be top priority for Vermonters

─ No governance structure or group established yet

─ Expected to be a significant contributor to VT Environmental Community over life of project

─ Not a mitigation fund

VT Public Benefit Fund

17

Initial Outreach

• State / Federal Agencies, Nonprofits, Elected

Officials, Utilities, Town Officials, Environmental & Business Groups

Stage 1: Initial Stakeholder

Outreach

• Ongoing • Town Managers, Select Boards, Abutters,

Interested Citizens, RDCs, RPCs, etc.

Stage 2: Local & Regional Outreach

• Ongoing • Six local open house meetings held • Lake Symposium • Meet with Planning Commissions

Stage 3: Local Information

Meetings

• Ongoing • DOE Public Comment ongoing • DOE Scoping Meetings (2014) • Continuing Regulatory Process

Stage 4: Formal Agency-led Public

Meetings

18

Timing Key Events

Q4, 2013 Public Announcement, Interconnection Requests Filed, Team Assembled, Outreach

Q1, 2014 Continued Outreach, Route Vetting with Agencies, FERC Filing Completed

Q2 - Q4, 2014 Local Outreach, Field Studies, Multiple Route Alternatives analyzed in water and on land, Filed Presidential Permit and U.S. Army Corps. Permit Applications

December, 2014

248 Petition (CPG)

2015 CPG, DOE Presidential Permit, ANR Permit and Army Corps Permit Review

2016 – 2018 Construction

2019 Line in Operation

Proposed Overall Timeline

19

Additional Information

Contact: Rick Chase| Rick.Chase@chvtllc.com | (802) 885-3890

TDI New England

info@chvtllc.com

www.necplink.com