Thank you very much, Chair.
While I am pleased to enter into debate on this motion, I do want to apologize to the witnesses. I was very much looking forward to having my turn to question them.
Mayor Porlier, if you're still listening at all, I did have the opportunity to look up your wonderful site on tourism at Sept-Îsles. It is very intriguing.
Mayor Parsons, one of my best friends comes from Corner Brook, but I have never visited, so I am certainly hoping to have that opportunity.
Let's get back to the motion.
This motion ostensibly is about transparency, trying to find out more about this deal related to the Lake Erie Connector. The implication is that there is some sort of nefarious, secretive stuff in various documents that presumably will reflect badly on the government.
As my colleague Mr. Fillmore has said, clearly Mr. Scheer has made his opinion of the Canada Infrastructure Bank very clear. The motion is simply a way of putting a chill on the agreement in principle. It will no doubt cause other projects that are in line for consideration by the Canada Infrastructure Bank—probably many of those already being negotiated—and for the principals of those projects to wonder if their agreement is going to be dragged in front of a parliamentary committee and scrutinized and so on.
It seems to me that it's clearly a partisan move by the official opposition that may very well, in fact, cause a number of projects to be deferred or not entered into because investors will not want to have their particular project go through this process that we're embarked on today.
As the notion is transparency, I think it's very important for people to realize just what is totally public information about the project itself, as follows:
How was the route chosen?
The Lake Erie Connector project is being developed by ITC Investment Holdings Inc., the parent company of ITC Holdings Corp., the largest independent electricity transmission company in the United States and a subsidiary of Canada-based Fortis Inc.
Why is this transmission line needed?
The Lake Erie Connector is needed to create a direct energy transmission corridor between the Ontario IESO and U.S. PJM energy markets, helping improve the security and reliability of both regional systems. It also is expected to help increase market efficiencies
—surely something the Conservative Party would approve of—
and benefit the economies of both regions. The project has the potential to strengthen the regional grid by playing a role in emergency grid restoration.
How does power currently flow between the Ontario IESO and the PJM energy markets?
The energy currently must flow across limited existing interties and through other markets such as Michigan or New York to travel around Lake Erie. Some entities do schedule power in this way, but it is inefficient and costly. The Lake Erie Connector will provide a new, direct, and efficient trading route between the two markets and will benefit both regions.
What is the route of this energy transmission line?
The proposed route of the Lake Erie Connector is between Nanticoke, Ontario and Erie County, Pennsylvania and beneath Lake Erie.
Nanticoke, as some of you may recall, was the site of a very large coal-generated electricity plant, and that was closed by the former Ontario Liberal government, and of course, it has all the infrastructure sitting there, ready to connect to this Lake Erie Connector.
How was the route chosen?
The two points of interconnection in Ontario and Pennsylvania were chosen because they provide excellent access to the existing transmission systems. The cable route has been optimized to connect these two points while minimizing environmental impacts, avoiding areas of historical and archaeological interest (such as shipwrecks), and utilizing low-impact shoreline crossings.
Where will the energy come from?
There are a variety of generation sources in the markets of the Ontario Independent Electricity System Operator...and PJM Interconnection, and neighbouring regions. The shippers who purchase capacity on the Lake Erie Connector will determine the source of the energy they transfer.
How large are these energy markets?
Ontario is Canada's second largest province covering more than one million square kilometres with a population of 13.5 million people.
Actually, I think it's closer to 14 million people since this was put together. It continues:
PJM comprises all or part of 13 U.S. states, with a population exceeding 60 million—the largest energy market in the world.
Have you engaged public input on this project?”
Yes, numerous, public consultations in Ontario and Pennsylvania were held—the respective connecting points of the line—to discuss the project and gather community input.
How could this project impact homes and businesses?
[The] project development team has worked closely with local and regional planners and with local residents and other stakeholders in the U.S. and Canada to minimize impacts to local residents.
What are the major milestones in this project?
I think some people may recall, as we heard last Tuesday, that this project was first conceived of in 2014.
In 2017 [the proponents] received major permit approvals from Canada's National Energy Board [with the] issuance of a Certificate of Public Convenience and Necessity for the project...; the U.S. Department of Energy...granted the project a Presidential Permit, which is required for international border crossing projects...[and] the U.S. Army Corps of Engineers...and the Pennsylvania Department of Environmental Protection [granted approvals]. Remaining milestones in the project include completing project cost refinements and securing favorable transmission service agreements with prospective counterparties, after which ITC Investment Holdings, Inc. would proceed with construction, as soon as 2021 or 2022.
Hopefully, without the derailment of this motion, we can see this project actually start construction this year.
Next, how will the cables be installed under water?
The Lake Erie Connector will use two cables that are each approximately six inches in diameter. A specialized ship will lay the HVDC cable along the bottom of Lake Erie utilizing low-impact water jet technology to create a temporary trench that is only slightly wider than the cable itself, and which will be filled by natural forces.
Of course, this type of underwater cable was used through the years: the transatlantic telephone cable. My father actually was an engineer on that project many decades ago. It's proven technology, and it will no doubt be a very efficient and effective way of transmitting the power that way.
Is this transmission project safe?
Placing transmission cables beneath waterways is an established and safe way to move power. These cables will be well insulated, do not contain liquids or gels, and are made from non-flammable materials.
Can the cable be damaged once it is placed under Lake Erie?
This is highly unlikely. The cables will be placed safely and securely beneath the lakebed. In the unlikely event that the cable is damaged, the system can identify the location and shut down within fractions of a second. Protocols are in place at both converted stations to ensure safety.
What is high-voltage, direct current transmission?
High-voltage direct current (HVDC) uses direct current to transmit electricity, in contrast with the more common alternating current (AC) systems. HVDC systems are often built as an overlay to a robust AC system or for unique circumstances. HVDC transmission lines are especially appropriate for underwater applications. HVDC systems have a long record of reliable performance around the world. As an analogy, an AC line is like a highway, with multiple interconnections to the regional grid that act as on- and off-ramps. A DC—