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ITC Midwest Receives Approval to Purchase Interstate Power and Light Transmission Assets in Iowa

Sep 18, 2007

NOVI, Mich., Sept 18, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --

ITC Midwest LLC today received verbal approval from the Iowa Utilities Board to purchase the transmission assets of Interstate Power and Light Company (IPL) in Iowa. ITC Midwest is a subsidiary of ITC Holdings Corp. (NYSE: ITC); IPL is a subsidiary of Alliant Energy Corp. (NYSE: LNT).

The IUB decision, likely to be issued as a written order on or before Sept. 27, clears another regulatory requirement in ITC Midwest's pursuit of owning, operating and maintaining the transmission infrastructure that serves all of Iowa as well as parts of Minnesota, Missouri and Illinois.

ITC Midwest and IPL signed an agreement in January to transfer 6,800 miles of 34.5 kV and above transmission lines, substation facilities and transmission land rights in Iowa, Missouri, Minnesota and Illinois from IPL to ITC Midwest ownership. The sale, valued at approximately $750 million subject to various adjustments, is also subject to federal and state regulatory approvals.

The IUB decision represents the third favorable ruling the companies have received on their joint application for a reorganization of transmission assets from IPL to ITC Midwest ownership. 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. The Missouri Public Service Commission granted regulatory approval of the sale in August. ITC Midwest and IPL are still seeking approval of the sale from the Federal Energy Regulatory Commission, the Illinois Commerce Commission and the Minnesota Public Utilities Commission.

"We thank the IUB for putting its trust in our company and are gratified its members see the value of an independent transmission model for Iowa and its customers," said Joseph L. Welch, president and CEO, ITC. "We resolve to fully honor our commitments and work with the board to upgrade the transmission infrastructure in the state," Welch said.

"We are committed to improving electric reliability, reducing power congestion, providing access to regional energy markets and expanding market participation by renewable resources."

The IUB written order will provide additional terms of the decision.

Pending receipt of all federal and state regulatory approvals, ITC Midwest and IPL expect to complete 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, reduce congestion, improve access to markets and lower the overall cost of delivered energy. Through its subsidiaries, ITC is the only independent, publicly-traded company engaged exclusively in the transmission of electricity in the United States. ITC is the eighth-largest transmission company in the country based on electric sales. ITCTransmission and Michigan Electric Transmission Company operate contiguous, fully-regulated, high-voltage systems in Michigan's Lower Peninsula. In January 2007, ITC Midwest signed a definitive agreement to acquire all of the transmission assets of Interstate Power and Light Company in Iowa and portions of Minnesota, Illinois, and Missouri. The transaction is expected to close in the fourth quarter of 2007. ITC Grid Development is focused on partnering with local entities and utilities in regions where significant transmission improvements are needed. ITC Grid Development is currently focused on the Great Plains region (including Kansas and Oklahoma) and the Panhandle region (including Texas and Oklahoma) and has formed ITC Great Plains and ITC Panhandle Transmission in support of this effort. For more information on ITC Holdings Corp., please visit http://www.itc-holdings.com. (itc-ITC)

SOURCE ITC Holdings Corp.

    
http://www.itc-holdings.com/
    

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