Hydro One and ITCTransmission Replacing Canadian-U.S. Interconnection Circuit

Oct 23, 2006

MARYSVILLE, Mich., and SARNIA, Ontario, Oct 23, 2006 /PRNewswire via COMTEX News Network/ -- Hydro One is rebuilding the 1.2 mile 230,000 volt interconnection circuit that connects to the ITCTransmission, a subsidiary of ITC Holdings (NYSE: ITC) system in Southeast Michigan that was removed after gale-force winds brought down a transmission tower in the Sarnia, Ontario area in April, 2003.

"This interconnection is a vital component to the electricity infrastructure in the region and one that will provide benefits to both customers in Southeast Michigan as well as those in Ontario," said Joseph L. Welch, president and CEO of ITCTransmission. "As an independent electricity transmission company, ITCTransmission remains 100% focused on improving infrastructure and strengthening the energy market to ensure both the reliable transmission of electricity as well as a robust and competitive energy market."

Today, a helicopter will begin stringing a new conductor across the St. Clair River to restore a connection linking the Hydro One system to the ITCTransmission grid in Southeast Michigan. The new circuit is expected to be operational by mid-November, and will increase import capacity from ITCTransmission's system to Hydro One by about 100 MW (enough power to serve the average needs of about 30,000 homes) in advance of Ontario's winter peak demand period.

"This project will help improve overall supply reliability in Ontario by increasing electricity import/export capacity," said Tom Parkinson, Hydro One president and CEO. "We're maximizing the effectiveness of our existing high- voltage transmission system. The work is a reflection of Hydro One's commitment to investing in its power delivery system and providing a high level of service."

About Hydro One

Hydro One delivers electricity safely, reliably and responsibly to homes and businesses across the province of Ontario and owns and operates Ontario's 29,000 kilometre high-voltage transmission network that delivers electricity to large industrial customers and municipal utilities, and a 122,000 kilometre low-voltage distribution system that serves about 1.3 million end-use customers and smaller municipal utilities in the province. Hydro One is wholly owned by the Province of Ontario. Our web site is www.HydroOne.com

About ITCTransmission

ITCTransmission, a subsidiary of ITC Holdings Corp. (NYSE: ITC), is the first independently-owned and operated electricity transmission company in the United States. ITCTransmission is in the business of transmitting high voltage electricity from generating facilities in southeastern Michigan, other Midwestern states and Ontario to distribution substations, serving a population of approximately 4.9 million people in an area comprised of 13 southeastern Michigan counties, including the Detroit metropolitan area. Our operating assets consist primarily of approximately 2,700 circuit miles of transmission lines, approximately 17,000 transmission towers and poles and 155 stations and substations. ITCTransmission operates, maintains and invests in the transmission infrastructure in order to improve efficiency in the flow of electricity, enhance system reliability and lower overall delivered energy costs. For more information on ITCTransmission visit www.itctransco.com. For more information on ITC Holdings Corp. visit www.itc-holdings.com.

SOURCE ITC Holdings Corp.

For more information and to make arrangements for photography, contact Hydro One

Media Relations 24 hours a day, 1-877-506-7584 (toll-free in Ontario only) or

+1-416-345-6868, or Lisa Aragon, ITCTransmission, +1-248-835- 9300 or

laragon@itctransco.com

http://www.itc-holdings.com

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