The New England Clean Power Link project was announced Thursday by the company TDI New England.
The company hopes to complete the project by 2019.
The link would be privately financed. The company estimates it would save energy consumers $2 billion in its first 10 years in operation.
The company has not yet applied for the permits that would be needed to begin construction.
The proposal would run two, six-inch cables down Lake Champlain and east to Ludlow.
A similar project has been proposed that would run under Lake Champlain then to New York City.