Oil Consumption Per Capita Global View, 2006 Source: BP Statistical Review of World Energy 2006
Refinery Utilization Historical Trends by Region Source: BP Statistical Review of World Energy 2006
Electricity Generation Terawatt-hours, 1999-2005 Terawatt -hours 6000 5500 5000 4500 4000 Asia Pacific Europe & Eurasia North America 3500 99 00 01 02 03 04 05 Source: BP Statistical Review of World Energy 2006
Natural Gas Production Million Tonnes Oil Equivalent, 1970-2005 Million Tonnes Oil Equivalent 1000 800 600 400 200 Asia Pacific Europe & Eurasia North America 0 70 75 80 85 90 95 00 05 Source: BP Statistical Review of World Energy 2006
World Midyear Population Forecast Billions, 2000-2050 Billions 9.5 9.0 World Population 8.5 8.0 7.5 7.0 6.5 6.0 5.5 2000 2010 2020 2030 2040 2050 Source: Census Bureau
U.S. Cumulative Capacity Additions By Fuel Type Nuclear Renewables Natural Gas Coal Source: Energy Information Administration
New Oil and Gas Project Investment By Source and Destination, 2006-2010 Source of Investment by Company Base Distribution of Investment Rest of the World, 13% OPEC, 7% OPEC, 23% OECD, 80% Rest of the World, 59% OECD, 19% Source: International Energy Agency
Renewable Energy Consumption Trend United States, 1995-2006 Quadrillion BTU 4.0 3.0 Hydro-Electric Power Biomass Other 2.0 1.0 0.0 95 96 97 98 99 00 01 02 03 04 05 06 Source: Energy Information Administration/Monthly Energy Review March 2007
Evolution of World Total Primary Energy Supply By Fuel, 1971-2004 Million Tonnes of Oil Equivalent Coal Hydro Oil Gas Combustible Renewables & Waste Nuclear Other Source: International Energy Agency
Cumulative Investment in Energy Infrastructure By Type, 2005-2030 Exploration and Development, 56% LNG Chain, 7% Transmission and Distribution, 37% Gas, 19% Biofuels, 1% Coal, 3% Power Generation, 46% Transmission and Distribution, 54% Oil, 21% Electricity, 56% Exploration and Development, 76% Refining, 18% Other, 6% Source: International Energy Agency
Fuel Shares of World Total Primary Energy Supply 2004 Oil, 34.30% Gas, 20.90% Nuclear, 6.50% Non-Renew. Waste, 0.20% Coal, 25.10% Renewables, 13.10% Source: International Energy Agency
Top 5 Countries in Renewable Fuel Investment By Annual Amounts or Capacity Additions in 2005 Type of Renewable Fuel 1 2 3 4 5 Annual investment Germany/China Germany/China U.S. Ja pan Spain Wind power U.S. Germany Spain India China Solar PV (grid-connected) Germany Ja pan U.S. Spain France Solar hot water China Turkey Germany India Austria/Greece/ Japan/Australia Ethanol production Brazil/U.S. Brazil/U.S. China Spain/India Spain/India Biodiesel production Germany France Italy U.S. Czech Republic Source: Renewable Energy Policy Network for the 21st Century
Growing Global Interest in Renewable Fuel Selected Indicators 2004 2005 Investment in new renewable capacity (annual) $30 $38 Billion Renewables power capacity (existing, excl. large hydro) 160 182 GW Renewables power capacity (existing, incl. large hydro) 895 930 GW Wind power capacity (existing) 48 59 GW Grid connected solar PV capacity (existing) 2 3.1 GW Solar PV production (annual) 1150 1700 MW Solar hot water capacity (existing) 77 88 GWth Ethanol production (annual) 30.5 33 Billion Liters Biodiesel production (annual) 2.1 3.9 Billion Liters Countries with policy targets 45 49 States/provinces/countries with feed-in policies 37 41 States/provinces/countries with RPS policies 38 38 States/provinces/countries with biofuels mandates 22 38 Source: Renewable Energy Policy Network for the 21st Century
Global Nuclear Mindset Status of Commercial Nuclear Power Source: Wikipedia
Nuclear Power Production 1971-2004 Million Tonnes of Oil Equivalent OECD Former USSR Non-OECD Europe Asia* Other** Source: International Energy Agency
Renewable Energy Sources Source: Energy Information Administration
Electricity Consumption Source: CIA World Factbook
Existing Wind Power Capacity 1990-2005 Source: Renewable Energy Policy Network for the 21st Century
Wind Power Capacity Top Ten Countries Source: Renewable Energy Policy Network for the 21st Century
Solar PV Capacity 1990-2005 Source: Renewable Energy Policy Network for the 21st Century
Renewable Power Capacity 2005 Source: Renewable Energy Policy Network for the 21st Century
World Ethanol Fuel Production 2000-2005 Source: Renewable Energy Policy Network for the 21st Century
Major Pipelines Source: EIA, World Press, Global Research
Cost and Prices of Power Average Unit Power Generation Cost (Comparison of Different Energy Sources) Cost (US$ cents/kwh) 40 30 32 20 10 4 6 7 6 8 0 Solar Coal Nuclear Gas Wind Oil Average Residential Power Prices in 2004 (US$ cents/kwh) 30 25 20 10 18 16 13 9 7 4 4 0 Japan Italy Germany UK US South Korea India China
Historical Prices of Oil, Natural Gas, and Corn WTI ($/bbl) $80 $60 $40 $20 $0 Historical Prices for Oil and Natural Gas Oil Natural Gas 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 YTD $14 $12 $10 $8 $6 $4 $2 $0 Henry Hub ($/MMBTU) Historical Corn Prices $ per bushel $5 $4 $3 $2 $1 Corn $0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 YTD
Energy Transfer Midstream Assets
U.S. Natural Gas Systems
Who is ITC? ITC and its subsidiaries are in the business of investing in electricity transmission infrastructure improvements as a means to improve electric reliability, reduce congestion and lower the overall cost of delivered energy.
Who Is ITC? Service Territory Map Largest independent transmission company and currently 8 th largest transmission company overall in the U.S. in terms of transmission load served (1) Only publicly traded company engaged exclusively in the transmission of electricity in the U.S. Rate regulation by the Federal Energy Regulatory Commission ( FERC ) Recently recognized by Crain s Detroit as one of metro Detroit s top 20 fastest growing companies (2) ITC is committed to investing in the electricity transmission grid in an effort to improve reliability, reduce congestion and lower the overall cost of delivered energy (1) Based on transmission load served (annual electric retail sales in the service territory) as found in Edison Electric Institute Profile: Rankings of Shareholder-Owned Electric Companies, May 2006. (2) Crain's Detroit Business 2007 Book of Lists, December 25, 2006.
Service Territory
ITC Holdings Subsidiary Comparison System Peak Load 12,745 MW 9,469 MW 3,123 MW * Service Area Southeastern Michigan Lower Peninsula of Michigan Iowa, and portions of Minnesota and Illinois Total Transmission Miles More than 2,700 Approximately 5,400 6,791 Stations 155 81 Approximately 170 Interconnections 16 21 Approximately 160 Membership Midwest ISO Midwest ISO Midwest ISO Became ITC Holdings Subsidiary March 1, 2003 October 10, 2006 Definitive agreement signed January 19, 2007; Acquisition closing expected fourth quarter 2007 * Assumes closing of acquisition of Interstate Power and Light Company (IP&L).
Improved Maintenance, Efficiency Our maintenance methodology is simple: invest in prevention. When we assumed responsibility for the ITCTransmission system, the backlog was approximately four years behind with some areas being up to 15 years behind. Once the backlog is eliminated, we will remain committed to ongoing preventative maintenance. Activity Breaker Inspections Bus Inspections Relay Complete Periodic Maintenance Tower Inspections Tower Painting Infrared Inspections Transformer DGA Line Clearance / Corridor Mowing 2003* 28 6 10 857 147 153 43 95% 2004 82 51 176 1,441 1,095 153 71 105% 2005 96 81 354 1,442 3,500 154 62 100% 2006 58 60 526 2,212 0 157 96 100% * ITCTransmission became a stand-alone transmission company on March 1, 2003, following divestiture from DTE Energy.
Reinvestment in the Grid 250 200 150 100 50 0 Ten Months 2003 2004 2005 2006 C i l E di D i i ITC, through its subsidiaries ITCTransmission and METC, has invested significantly in property, plant and equipment in an effort to improve reliability. 2003 - $41 million 2004 - $81.5 million 2005 - $117.8 million 2006 - $221.5 million* Jewell Spokane Example One time $8 million investment produces energy savings in excess of $60 million annually in Southeast Michigan. * METC acquisition was completed on October 10, 2006. This total includes both ITCTransmission and METC capital investments of $171.5 million and $50.0 million, respectively.
Improved System Performance 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 Since assuming responsibility for the ITCTransmission system, we have reduced sustained system outages from 44 in our first year to 24 in 2006. Average Circuit Outages: Sustained and Momentary (1) 0.49 0.28 Sustained 0.70 0.38 0.23 0.23 (1) 2006 SGS Transmission Reliability Benchmarking Study: Measures total number of circuit interruptions (momentary or sustained) in a unit time period divided by the number of circuit-years. Momentary Industry Average Top Quartile ITC
Result of Underinvestment Rusted cathodic protection device insecurely mounted on a jack stand Breakers coated in rust Cotter pin holding up a shield wire that is ready to give way Vegetation growing into the lines
ITC Zone Load During Summer 2006 Peak 14000 ITC Zone Load 12000 10000 8000 MW 6000 4000 2000 ITC Zone Import (IESO, FE, METC) ITC Zone Gen IPP ITC Zone Gen DECO ITC Zone Import (IESO, FE, METC) Total Generation Capacity ITC Zone in Gen SE - IPP Michigan ITC Zone Gen - DECO 0 7/31/06 0:00 7/31/06 4:00 7/31/06 8:00 7/31/06 12:00 7/31/06 16:00 7/31/06 20:00 8/1/06 0:00 8/1/06 4:00 8/1/06 8:00 Time 8/1/06 12:00 8/1/06 16:00 8/1/06 20:00 8/2/06 0:00 8/2/06 4:00 8/2/06 8:00 8/2/06 12:00 8/2/06 16:00 8/2/06 20:00
ITC Load Duration Curve 2006 ITC Load Duration Curve 13,000 12,000 11,000 10,000 9,000 M W 8,000 7,000 Points beyond 100% are the minimum demands for the year 6,000 5,000 4,000 Minimum 3,000 0 20 40 60 80 100