Environmental Initiatives in Supply Chain Institute for Supply Management Southeast Michigan Meeting April 10, 2014

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Annabel Green
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1 Environmental Initiatives in Supply Chain Institute for Supply Management Southeast Michigan Meeting April 10, 2014

2 SAFE HARBOR LANGUAGE AND LEGAL DISCLOSURE This presentation contains certain statements that describe our management s beliefs concerning future business conditions and prospects, growth opportunities and the outlook for our business and the electricity transmission industry based upon information currently available. Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Wherever possible, we have identified these forwardlooking statements by words such as anticipates, believes, intends, estimates, expects, projects and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward-looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among other things, the risks and uncertainties disclosed in our annual report on Form 10-K and our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission from time to time. Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward-looking statements may turn out to be wrong. They speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this presentation and in our annual and quarterly reports will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Actual future results may vary materially. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise. 2 2

Such statements are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

3 ITC Overview Largest fully independent transmission company in the nation; 9 th largest transmission owner overall Founded in operating companies in 7 states Michigan, Iowa, Illinois, Minnesota, Missouri, Kansas, Oklahoma Approximately 550 employees and 500 skilled labor contractors Capital investments of ~$3.0B in its business since inception Singular focus: own, operate and maintain transmission Over 15,000 Miles of High-Voltage Lines and 544 Substations 3 3

Approximately 550 employees and 500 skilled labor contractors Capital investments of ~$3.

4 ITC Overview 4 4

5 ITC Overview 5 5

6 ITC Overview 6 6

7 ITC Overview 7 7

8 ENVIRONMENTAL DEPARTMENT STRUCTURE ITC Environmental Department falls under ITC Supply Chain and is responsible to the Board of Directors Environmental Committee ITC Environmental Department consists of: Supply Chain Director, Mark Tollensdorf Environmental Manager, Mike McNulty Marine Pollution Control (MPC) Environmental Consulting and Technology (ECT) MPC and ECT have been part of the ITC Environmental Department since the inception in

Director, Mark Tollensdorf Environmental Manager, Mike McNulty Marine Pollution Control (MPC) Environmental

9 ENVIRONMENTAL DEPARTMENT STRUCTURE 9

10 ITC ENVIRONMENTAL PHILOSOPHY Ensure Overall Regulatory Compliance Be a Leader in Environmental Stewardship in the Industry Minimize Potential Environmental Liability Find Cost Effective Methods to Deal with Environmental Issues Implement Corporate Environmental Policy Uniformly Compliance and Environmental Performance is a Company-wide Responsibility The Responsibility of Each Department and Every Employee 10

Deal with Environmental Issues Implement Corporate Environmental Policy Uniformly Compliance and

11 ENVIRONMENTAL COMPLIANCE AND INITIATIVES Environmental Initiatives Zero-Waste Recycling Vendor Management Environmental Compliance as it Relates to Supply Chain Chemical Storage SPCC Plans Safety Data Sheet Management Habitat Initiatives Wildlife Habitat Council ROW Management 11

Relates to Supply Chain Chemical Storage SPCC Plans Safety Data Sheet

12 ZERO LANDFILL PROGRAM Zero-Landfill Waste Audit Identify Recyclables Identify what can be reused Install containers Employee Education Waste-to-Energy 12

13 ZERO LANDFILL PROGRAM Before: recyclables were mixed in with the regular trash After: Various items were removed and reduced the volume of trash generated by an estimated 50%. 13

14 ZERO LANDFILL PROGRAM 14

15 ZERO LANDFILL PROGRAM 15

16 ZERO LANDFILL PROGRAM 16

17 ZERO LANDFILL PROGRAM 17

18 ZERO LANDFILL PROGRAM 18

19 ZERO LANDFILL PROGRAM The remaining trash is compacted on-site and transported to a Waste-ToEnergy/Cogeneration Power Plant where it is converted to electricity 19

20 ZERO LANDFILL PROGRAM 20

21 EQUIPMENT RECYCLING As our electrical infrastructure is upgraded, we need to manage oilfilled equipment in a responsible manner. Most components of decommissioned electrical equipment can be recycled. 21

22 2013 RECYCLED METAL/OIL System Metal Recycled (pounds) Oil Recycled (gallons) ITC Transmission 1,353,281 62,096 METC 1,313,142 11,085 ITC Midwest 3,402,248 61,127 Using multiple select vendors ITC is able to get the most liability protection for disposal use and best price in selling oil and metal. 22

23 VENDOR MANAGEMENT Vendor Management Environmental Contractors Environmental Consultants Disposal Facilities Construction Contractors 23

24 VENDOR MANAGEMENT Waste Disposal - Risk Management Per Federal Environmental Regulations A generator becomes responsible for waste from it's inception until it has been destroyed. Known as the Cradle to Grave Law. The generator is responsible for their waste including contamination caused by improper handling at the disposal site. Superfund has joint and several liability. The generator may be partially or completely responsible for the cleanup. Typically large companies are targeted for cleanup cost. Even if liability can be waived, the legal defense is expensive. 24

25 VENDOR MANAGEMENT Risk Management ITC Environmental Department performs a thorough check of all contractors and disposal facilities prior to use to minimize risk. Audits include: Verification of permits Investigation of compliance history Review of insurance Physical site visit to verify facility conditions, appropriate waste handling, safety, and potential environmental risks Evaluate associated risk for environmental liability Research list of other companies using the facility 25

26 VENDOR MANAGEMENT Other Considerations Pricing ($$$ for recycled commodities) Mobilization/Transportation Time Reporting & Tracking Capabilities Waste Reporting Recycling Data Greenhouse Gas Reporting 26

27 VENDOR MANAGEMENT Third Party Releases Financial compensation for chemical releases on your property or projects. 27

28 ENVIRONMENTAL COMPLIANCE Chemical Storage Aboveground Storage Tanks Fleet Vehicle Fueling 28

29 ENVIRONMENTAL COMPLIANCE Chemical Storage Bulk Oil Tanker Containment 29

30 ENVIRONMENTAL COMPLIANCE Chemical Storage Spare Transformer Storage 30

31 ENVIRONMENTAL COMPLIANCE Chemical Storage Waste Accumulation 31

32 ENVIRONMENTAL COMPLIANCE Chemical Storage Cylinder Storage 32

33 ENVIRONMENTAL COMPLIANCE Spill Prevention Control & Countermeasure 33

34 ENVIRONMENTAL COMPLIANCE Right-to-Know/MSDS Management MSDS Process Chemical Inventories Community Reporting New Globally Harmonized System (GHS) - Manufacturers comply by June 1, Distributers by December 1, Employers by June 1,

35 ENVIRONMENTAL STEWARDSHIP Environmental Stewardship Wildlife Habitat Council Iowa City Warehouse Rain Garden 35

36 ENVIRONMENTAL STEWARDSHIP 36

37 ENVIRONMENTAL STEWARDSHIP/ROW MANAGEMENT 37

38 GOVERNMENTAL RECOGNITION Michigan Department of Environmental Quality - Clean Corporate Citizen (C3) February 2012/Renewed April Michigan Business Pollution Prevention Partnership June 2012 Environmental Protection Agency - SF6 Emission Reduction Team Leadership Award April 2012 Washtenaw County, MI - Environmental Excellence in Pollution Prevention Iowa Governors Award - Environmental Excellence in Habitat Restoration June 2013 Detroit Free Press - Green Leaders Honorable Mention May

39 ENVIRONMENTAL INITIATIVES IN SUPPLY CHAIN THANK YOU! ANY QUESTIONS? Contact Information: Mike McNulty Environmental Manager ITC Holdings Corp (248)

Waste Management: Company Overview

Waste Management: Company Overview WM s core strategic pillars 1 Know more about our customers and how to service them 2 Extract more value from the materials we handle 3 Innovate and optimize the business