Ontario Transmission, Canada (100%), Cross Sound Cable, U.S. (23%), WETT, U.S. (11%)
– Critical link between electricity generation and electricity demand
Description
Our North American Electricity Transmission Operations consist of approximately 1,200 km of transmission lines, including 550 km of 44kV to 230kV transmission lines in Northern Ontario, a 330 MW submarine transmission line between Connecticut and Long Island and approximately 375 miles of transmission lines currently under development in Texas.
Regulatory Environment
The assets operate under established regulatory environments in Ontario (Ontario Energy Board) and Texas (Public Utility Commission of Texas). The New England business operates in compliance with FERC. Ontario and Texas Operations are entitled to receive revenues under a historical cost of service regime.
Stable Cash Flows
This business has a secure competitive position that generates stable cash flows over the long term due to operating under either stable and proven regulatory frameworks or long-term contract and the essential nature of transmission services.
Strong Customer Base
Revenues from our Ontario and Texas (once operational) operations are collected by the regional market operator, mitigating credit risk. Our New England operation, a non regulated transmission business, developed a long-term relationship with its sole customer, Long Island Power Authority, which contracted the entire capacity of the transmission line for 30 years beginning in 2002.
Long-Life Strategic Assets
Our North American Transmission Operations are the critical component of transmission systems that connect the electricity generator to electricity demand. Transmission assets are long-lived with low sustaining capital and operating expenditures.
Growth opportunities
As a result of economic growth and requirements to build renewable power assets, there will be requirements to upgrade and expand the electricity system to connect new electricity generation that is many miles away from load centers. In addition, upgrades and replacement of aging existing transmission assets will also be required in the future. There are opportunities to deploy capital at regulated rates of return to expand and upgrade our North American Electricity Transmission Operations and leverage Brookfield’s operating credentials to participate in greenfield projects.