Minister Asks IESO to Pursue Contract Negotiations for Lake Erie Connector Project
May 20, 2021
The Minister of Energy, Northern Development and Mines has asked the IESO to enter into contract negotiations with ITC on its Lake Erie Connector project which would establish a new 1,000 megawatt underwater transmission intertie between Ontario and Pennsylvania, in the PJM service area.
In a letter to the IESO, the Minister calls for contract terms that appropriately balance risks – particularly through the construction and development phase of the project - while maximizing the benefits of expanded intertie capacity to ratepayers. The Minister has also asked the IESO to provide an assessment of the potential for alternative cost-competitive intertie enhancements as well as the greenhouse gas impacts of transactions conducted through this line.
This step represents the next phase of the Ministry’s project assessment framework where the negotiated agreement on proposed major contract terms would be submitted back to the Minister for final approval.