CONJUNCTION RECEIVES FUNDING TO UPGRADE NEW
YORK POWER GRID
Empire Connection Will Improve Reliability
and Save New Yorkers More Than $600 Million
Annually
New York, NY, Ann Arbor, MI and Albany,
NY – September 9, 2003
ITC Holdings Corp. has agreed to make an investment
in Conjunction LLC, to facilitate the construction
of Conjunction’s Empire Connection project.
Kohlberg Kravis Roberts & Co. (KKR) and
Trimaran Capital Partners, through a limited
partnership, will be the primary equity sources
for the project. Empire Connection will carry
up to 2,300 megawatts of low-cost power from
upstate New York, New England and Canada to
the energy-hungry New York City metropolitan
area.
The investment will help fund and bring the
project to fruition, and leverage ITC Holdings’
experience, expertise and resources in the electric
transmission industry. ITC Holdings is the parent
of International Transmission Company, a leading
independent transmission company based in Michigan.
KKR and Trimaran Capital Partners are the principal
equity investors in ITC Holdings.
With the creation of independent transmission
companies, transmission super-highways like
Empire Connection can now move forward to rebuild
this country’s power grid. The recent
blackout in the Northeast and Midwest, affecting
50 million electric customers in New York, Ohio,
Michigan and Canada, is evidence such projects
are critical and long overdue.
“ITC Holdings brings vital management
resources to the project, while KKR and Trimaran
provide the financial sponsorship to give us
the wherewithal to complete Empire Connection,”
said Steve Mitnick, CEO of Conjunction.
“This opportunity to participate in the
Empire Connection project is exactly what we’re
about,” said Joseph Welch, CEO of ITC
Holdings. “It reflects our focus on investments
in infrastructure and engineering solutions
that result in greater efficiency in the flow
of electricity, better system reliability and
lower overall energy costs.”
The approximate $700 million Empire Connection
project is comprised of two circuits along railroad
and highway rights-of-way some 130 miles from
upstate New York to New York City. Conjunction
is already considering a possible third circuit
of 1,150 megawatts to further bridge the transmission
bottlenecks in New York State.
Conjunction estimates Empire Connection will
save New York City and Westchester County residents
and businesses more than $600 million per year
in electric costs starting in 2006, when the
project comes online. Empire Connection makes
the power supply for downstate more secure and
provides environmental benefits, including a
reduction in power plant emissions. Riverkeeper
and Natural Resources Defense Council have recently
endorsed the project.
Federal Energy Regulatory Commission approval
is needed as a condition to closing of the investment
by ITC Holdings. Conjunction will soon submit
its application to the New York Public Service
Commission to obtain approval necessary for
construction of the Empire Connection project.
Conjunction LLC, based in Albany, New York,
is dedicated to building transmission super-highways
to bridge transmission bottlenecks with low-cost,
clean and reliable power using direct current
cable principally. Over the last 15 months,
Conjunction has worked closely with the state
government of New York and the New York power
industry to finalize the construction plan for
Empire Connection. For additional information,
please visit www.conjunctionllc.com
and www.empireconnection.com.
ITC Holdings is a stand alone, independent
electric transmission company focused on identifying,
building and maintaining high voltage electric
transmission facilities to bring greater efficiency
and lower overall delivered cost of energy to
customers. ITC Holdings’ principal operating
subsidiary, International Transmission Company,
is responsible for operating and maintaining
over 2,500 miles of overhead and underground
high voltage transmission facilities in Southeast
Michigan. For additional information, visit
www.itctransco.com.
KKR is a private investment firm headquartered
in New York; Menlo Park, Calif.; and London.
Since its founding in 1976, KKR has completed
more than 100 transactions involving more than
$100 billion of total financing. For more information,
visit www.kkr.com.
Trimaran Capital Partners is a private asset
management firm, headquartered in New York.
Trimaran has completed 60 investments since
1995 and is investing Trimaran Fund II, which
has committed capital in excess of $1 billion.
For additional information, visit www.trimarancapital.com.
Contacts:
International Transmission Company
Linda Blair
(734) 332-5151
lblair@itctransco.com
Conjunction LLC
Steve Mitnick
(518) 465-5200
smitnick@conjunctionllc.com
Franco Public Relations
Marc Harlow
(313) 567-5014
harlow@franco.com
Kekst & Co. (for KKR)
Molly Morse
(212) 521-4826
molly-morse@kekst.com
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