PAYING FOR TRANSMISSION

Cost-Based Formula Rates

As independent transmission companies, ITCTransmission, METC, ITC Midwest and ITC Great Plains’ (regulated operating subsidiaries) calculate their revenue requirements using cost-based formula rate templates. Under these formula rate templates, our regulated operating subsidiaries recover expenses and earn a return on and recover investments in property, plant and equipment on a current rather than a lagging basis. The formula rate templates utilize forecasted expenses, property, plant and equipment, point-to-point revenues, network load at our MISO regulated operating subsidiaries and other items for the upcoming calendar year to establish projected revenue requirements for each of our regulated operating subsidiaries that are used as the basis for billing for service on their systems from January 1 to December 31 of that year. Our cost-based formula rate templates include a true-up mechanism, whereby our regulated operating subsidiaries compare their actual revenue requirements to their billed revenues for each year to determine any over- or under-collection of revenue. The over- or under-collection typically results from differences between the projected revenue requirement used as the basis for billing and actual revenue requirement at each of our regulated operating subsidiaries. In the event billed revenues in a given year are more or less than actual revenue requirements, which are calculated primarily using information from that year’s FERC Form No. 1, our regulated operating subsidiaries will refund or collect additional revenues, with interest, within a two-year period such that customers pay only the amounts that correspond to actual revenue requirements for that given period. This annual true-up ensures that our regulated operating subsidiaries recover their allowed costs and earn their allowed returns on the actual equity portion of their respective capital structures.

2017 ITC TRANSMISSION RATE POSTING
2017 METC RATE POSTING
2017 MIDWEST RATE POSTING
2017 ITC GREAT PLAINS RATE POSTING

Additional information on ITC’s regulated operating subsidiaries rate postings, including historical rate postings, true-up calculations and other rate schedules, can be found by clicking on the following links:
ITC Transmission – HTTP://WWW.OASIS.OATI.COM/ITC/INDEX.HTML
METC – HTTP://WWW.OASIS.OATI.COM/METC/INDEX.HTML
ITC Midwest – HTTP://WWW.OASIS.OATI.COM/ITCM/INDEX.HTML
ITC Great Plains – HTTP://SPPOASIS.SPP.ORG/DOCUMENTS/SWPP/MEMBERRELATEDPOSTINGS/MEMBERRELATEDPOSTINGS.ASP

Important: The Web sites to which you are being provided links above are not part of the ITC Holdings Corp. Web site. These links are provided for your convenience only. ITC Holdings Corp. makes no representation as to the accuracy of any information contained in the linked web sites.

As independent transmission companies, ITC’s regulated operating subsidiaries are subject to rate regulation by the Federal Energy Regulatory Commission (or FERC). Read more about the FERC and search the FERC elibrary by clicking on the attached link:HTTPS://WWW.FERC.GOV/ *

Transmission is defined as the bulk transfer of electrical energy, from generating power plants to electrical substations located near demand centers.

OPEN ITC FERC DOCKET NUMBERS OF INTEREST **

FPA Sec.206 Complaint Against MISO Base ROE and Other Rate Elements: EL14-12

FPA Sec.206 Complaint Against MISO Base ROE: EL15-45

* Important: The websites to which you are being provided links above are not part of the ITC Holdings Corp. Website. These links are provided for your convenience only. ITC Holdings Corp. makes no representation as to the accuracy of any information contained in the linked websites.

** Other FERC dockets that ITC’s regulated operating subsidiaries are involved in can be found in FERC’s elibrary.

FERC Form 1 Financial Filings

ITCTRANSMISSION FERC FORM 1 DECEMBER 2015
METC FERC FORM 1 DECEMBER 2015
ITC MIDWEST FERC FORM 1 DECEMBER 2015
ITC GREAT PLAINS FERC FORM 1 DECEMBER 2015

FERC Form 3-Q Financial Filings

ITC INTERCONNECTION FERC FORM 3-Q JUNE 2016
ITCTRANSMISSION FERC FORM 3-Q JUNE 2016
METC FERC FORM 3-Q JUNE 2016
ITC MIDWEST FERC FORM 3-Q JUNE 2016
ITC GREAT PLAINS FERC FORM 3-Q JUNE 2016

The transmission system throughout the U.S. connects millions of homes and businesses to power generating sources. While the grid has expanded over the last century to accommodate our growing population and needs, a legacy of outdated lines and generating stations remain operational. 

Consumers are generally connected to the cheapest and most efficient energy sources in their region. However, over the course of a day, demand for power fluctuates. This power is sent through transmission lines to meet changing demand, but when existing lines reach their maximum, latent sources of power, which are consistently more expensive, must be dispatched to meet rising consumer demand. 

In order to meet increasing demand, additional generation sources must be activated and tapped. This causes the local energy prices in the distressed regions to increase. 

By investing in enhancements to the existing transmission systems, we can increase transmission capacity and meet much higher consumer demand with the most efficient and lower-cost generation sources.  Working to create a more modern power grid will allow us to connect consumers to the most optimal generation sources to meet their demands—and keep costs (LMP) as low as possible. 

Increased reliability and lower costs: consumers across the nation will benefit from new transmission development. 

High regional congestion costs and other inefficiencies of the grid are costing consumers billions of dollars every year. These lost dollars due to inefficiency and congestion costs could be saved by upgrades or expansions of the nation’s over-stressed transmission infrastructure. Regional and interregional projects are needed to modernize the grid for the future.