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Federal Energy Regulatory Commission approves ITC's Plan to Purchase Transmission Assets from Interstate Power and Light

Dec 04, 2007

NOVI, Mich., Dec 04, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- ITC Holdings Corp. (NYSE: ITC) and its subsidiary, ITC Midwest LLC, received approval from the Federal Energy Regulatory Commission (FERC) to purchase 6,800 miles of transmission lines and stations in Iowa, Illinois, Missouri and Minnesota from Interstate Power and Light Company (IPL), a subsidiary of Alliant Energy Corp. (NYSE: LNT).

The FERC found that the sale of IPL's 34.5 kV and above power lines to ITC Midwest is likely to result in significant benefits due to further ownership of transmission assets by an independent transmission company. ITC is the largest independent electricity transmission company in the country.

"We are pleased that FERC approved ITC Midwest's acquisition of IPL's transmission assets. The order reaffirms the importance of independent transmission and is a vote of confidence in ITC and our commitment to improve the reliability and efficiency of the power grid," said Joseph L. Welch, president and CEO, ITC. "Our record in Michigan of successfully upgrading the transmission infrastructure, reducing costly system congestion, interconnecting customers, and facilitating the entrance of renewable resources into the market is testament to how we will conduct business in new markets."

As part of the acquisition approval, FERC included in its order the approved 12.38 percent return on equity and a 60 percent equity / 40 percent debt target capital structure. Through the FERC order, ITC Midwest will be able to utilize a forward-looking Attachment O rate-making mechanism, which will allow ITC Midwest to recover its expenses and investments in transmission property, plant and equipment on a current rather than on a historical basis.

The order issued by the FERC provides ITC with an additional regulatory approval it needs in order to own, operate and maintain IPL's transmission assets. ITC is still awaiting final determination in its request for regulatory approvals from the state of Minnesota. The company has already secured regulatory approvals for the transaction in Missouri in August, in Iowa in September, and in Illinois last week. In May 2007, the Federal Trade Commission completed its investigation of the sale and terminated the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

ITC Midwest is continuing to review and consider the terms of the order issued by FERC. ITC Midwest and IPL continue to take actions necessary to be prepared for completing this transaction by the end of the year.

About ITC Holdings Corp.

ITC Holdings Corp. (NYSE: ITC) invests in the electricity transmission grid to improve electric reliability, improve access to markets, and lower the overall cost of delivered energy. ITC is the largest independent electricity transmission company in the country. Through its subsidiaries, ITCTransmission and Michigan Electric Transmission Company (METC), ITC operates contiguous, regulated, high-voltage transmission systems in Michigan's Lower Peninsula serving a combined peak load in excess of 22,000 megawatts. ITC is also focused on new areas where significant transmission system improvements are needed through subsidiaries ITC Midwest, ITC Grid Development, ITC Great Plains and ITC Panhandle Transmission. For more information, please visit: (itc-ITC)

SOURCE ITC Holdings Corp.

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