FERC Approves Request to Repay Generators for Network Facilities Constructed to Enable Interconnection to ITCTransmission and METC

Sep 12, 2007

NOVI, Mich., Sept 12, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --

ITCTransmission and Michigan Electric Transmission Company, LLC (METC), subsidiaries of ITC Holdings Corp. (NYSE: ITC), today announced that the Federal Energy Regulatory Commission (FERC) has approved their joint application made with the Midwest Independent Transmission System Operator (Midwest ISO) to repay generators interconnecting with their systems for the full cost of network upgrades necessary to enable those interconnections. FERC approved the application, effective July 11, 2007.

"We sincerely appreciate FERC's continued allegiance to open, competitive markets and the hard work of the Commissioners and staff in approving our application so promptly," said Joseph L. Welch, president and CEO of ITC. "Electric transmission is the backbone of the energy delivery system and plays a critical role in enabling us to make the greater use of renewable and other clean electricity sources. FERC's order will remove a significant barrier to entry for new generation, including wind and other renewable resources, and will promote a more competitive energy market to the benefit of customers and generators."

Previously, generators interconnecting to the ITCTransmission and METC systems were required to bear half the costs of most network upgrades along with other costs of interconnection. Under the newly-approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITCTransmission and METC systems, provided the generators meet certain eligibility requirements. In FERC's words, "a network upgrade is considered part of the interconnected transmission system, benefiting all customers", and as such the costs of these upgrades will be paid by the customers of ITCTransmission and METC.

"Thank you to Governor Granholm and others who supported our proposal," said Welch. "This policy will serve as a model as we expand our footprint into other regions to promote fair generator interconnection standards by removing generator cost impediments and help realize the benefits of renewables."

The decision can be found in FERC Docket No. ER07-1141-000 and can be accessed at FERC's website at http://www.ferc.gov.

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: http://www.itc-holdings.com. (itc-ITC)

SOURCE ITC Holdings Corp.


Copyright (C) 2007 PR Newswire. All rights reserved

News Provided by COMTEX