NORTH GILA IMPERIAL VALLEY #2

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1 NORTH GILA IMPERIAL VALLEY #2 500 kv TRANSMISSION PROJECT (NG-IV#2 Prject) Prject Overview May 18, 2018

2 PROJECT STATUS AND OVERVIEW Develpment Team ITC Grid Develpment, LLC and Suthwest Transmissin Partners, LLC Single circuit cnfiguratin planned fr initial prject, with lp int the IID Highline substatin t establish a 500/230kV and a reliable utlet fr IID t exprt up t 1250MW f renewables as a new delivery pint Increase reliability f Path 42 and Path 46 under emergency cnditins (lss f existing SWPL) A segment f the lng-term plan develped frm the Imperial Valley Study Grup (CEC spnsred analysis) Ultimate permitting is still anticipated t include up t a duble circuit (e.g. 500/230kV same structure) Submitted as a Interreginal Transmissin Prject t WestCnnect and CAISO, March 2018 Open Huses held Late March 2018 in Yuma and El Centr (Prject Spnsred) EIS/EIR will be initiated in Q3 2018, permitting will include the ptin fr duble circuit Additinal Rute Optins Develped in respnse t agency input Develper is NGIV2, LLC Anticipated In-Service Date Q NG-IV#2 500kV Transmissin Prject

3 ITC WHO WE ARE LEADER IN GRID DEVELOPMENT OWNER & OPERATOR GENERATOR CONNECTIONS Custmer- Fcused Slutins PREFERRED TRANSMISSION PROVIDER NON-TRADITIONAL INFRASTRUCTURE 3 NG-IV#2 500kV Transmissin Prject

4 OUR IMPACT TO DATE 4 NG-IV#2 500kV Transmissin Prject

5 ITC TODAY $6.5B INVESTED IN INFRASTRUCTURE SINCE Subsidiaries in 8 states 15,800 Circuit miles 90,000 Square mile service territry 600+ Emplyees Member f 4 RTOs: MISO, SPP, PJM, NYISO Gegraphically flexible business mdel A Frtis cmpany 5 NG-IV#2 500kV Transmissin Prject

6 NGIV2 PROJECT ROUTING OVERVIEW 6 Imperial Cunty ~35 miles Private / Agricultural lands BLM Land ~55 miles, all within designated crridr (Prpsed Rute) Als at IV Sub NG-IV#2 500kV Transmissin Prject

7 NG-IV#2 PROJECT NEED & BENEFIT Ppulatin grwth and increasing energy demands in the Suthwest require additinal transmissin grid capacity. NG IV#2 Transmissin Line will: Prvide additinal imprt/exprt access frm generatin resurce znes where transmissin access currently is limited Reliable utlet fr exprt up t 1,250 MW f renewables Increase transmissin diversity, reliability and efficiency f the reginal grid, particularly thse prpsing t intercnnect t the IID system Resiliency fr lss f the existing Nrth Gila Imperial Valley line Enable mre energy develpers t tap int the reginal grid Prvide supprt t greenhuse gas (GHG) reductin targets 7 NG-IV#2 500kV Transmissin Prject

8 PERMITTING / ENVIRONMENTAL HISTORY ROW Grant frm BLM ROW applicatin submitted and accepted Develped Plan f Develpment (POD) Pre-NEPA planning fr Envirnmental Impact Statement (EIS) Evaluatin f new Rute Optins In respnse t agency cmments NEPA Prcess Reinitiated 2017 NOI expected in cming mnths Califrnia - CEQA Cmpliance cncurrent with EIS prcess Imperial Cunty cntacted regarding CUP / CEQA lead CUP applicatin in prcess BLM / Cunty wrking tgether in jint NEPA / CEQA prcess Arizna CEC Cmpliance anticipate filing after Draft EIS 8 NG-IV#2 500kV Transmissin Prject

9 REGIONAL TRANSMISSION PLANNING WECC Three-Phase Rating Prcess Granted Phase 1 Status, September 2011 Issued WECC Phase 1 CPR February 18, 2016 Granted Phase 2 Status, September 2016 Targeting t have an Accepted Rating cmplete in 2018 fr 1250MW increase t Path 46 Participative with CAISO, WECC, WestCnnect WestCnnect (TPPL) and CAISO planning effrts Submitted int Western Intercnnectin Interreginal Transmissin Crdinatin prcess Anticipating submittal f prject int CAISO Transmissin Planning Prcess Jint Planning Study with SDGE fr a hybrid analysis f the HVDC (IV t Miguel nly) and NGIV2 Wrking with IID n multiple benefits fr the IID (reliability, increase capacity, O&M services, etc.) Synergies with WAPA (Gila Knb 161kV Upgrade) and APS (Nrth Gila Orchard Yucca 230kV) 9 NG-IV#2 500kV Transmissin Prject

10 PROJECT ONE-LINE DIAGRAM (SINGLE CIRCUIT) 10 NG-IV#2 500kV Transmissin Prject

11 SINGLE VS. DOUBLE-CIRCUIT TOWER DESIGN Planned cnstructin using lattice steel structures (public lands) and/r mnple steel structures (private lands) Structure type will be determined by suitability fr each prtin f rute (single vs. duble, 500kV vs. 230kV) ROW width is the same 12 Prject estimate: $250M t $400M NG-IV#2 500kV Transmissin Prject

12 PROPOSED PROJECT SCHEDULE PHASE DESCRIPTION INITIATE COMPLETE Phase 1 Feasibility Activities Phase 2 Planning and WECC Rating Prcess Phase 3 NEPA / CEQA Prcess Phase 4 ROW, Cnstructin Permitting, and Engineering Phase 5 Prcurement & Cnstructin Phase 6 Operatin NG-IV#2 500kV Transmissin Prject

13 CONTACT INFORMATION Brian Studenka P.E. Directr, Engineering & Plicy Grid Develpment ITC Hldings Crp. A Frtis Cmpany Nvi, MI Phne: bstudenka@itctransc.cm Thmas Wrenbeck, P.E. Directr, Grid Develpment ITC Hldings Crp. a Frtis cmpany Energy Way Nvi MI (cell) twrenbeck@itctransc.cm Mark Ethertn, P.E. Directr, Prject Develpment Suthwest Transmissin Partners, LLC 2172 E. Calle de Arcs Tempe, AZ (cell) mark.ethertn@transc.energy 14 NG-IV#2 500kV Transmissin Prject

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