ITC Launches New Transmission Project in Saginaw Bay

Oct 20, 2008

ITC Launches New Transmission Project in Saginaw Bay

Murphy Station Groundbreaking Signals Start of $46 Million Capital Investment

NOVI, Mich., Oct. 20, 2008 - ITC today celebrated the construction of a new transmission station that, when complete, will anchor a $46 million capital improvement project designed to improve electric reliability in the Midland-Saginaw Bay region.

ITC's new Murphy Station, located on 14.46 acres of land on Geddes Road in Hemlock, Mich., will eventually house three separate electric yards capable of handling 345, 230 and 138 Kilovolt (kV) transmission lines. The station is the largest that ITC has constructed in Michigan and has been designed to address a projected increase in power demands over the next three years, a factor critical to ongoing electric reliability and continued economic growth in the area.

"Construction of Murphy Station and the entire Midland Project is an important part of ITC's investment in Michigan's transmission infrastructure," said Jon Jipping, executive vice president and chief operating officer, ITC. "We are proud to be a part of the economic engine driving this region and appreciate the input and support we received throughout the entire planning and development process."

ITC's Midland Project calls for three significant transmission system upgrades: construction of Murphy Station; installation of a new three-mile, 138 kV transmission line between Murphy Station and Hemlock Semiconductor Corporation (HSC); and construction of a new 138 kV switching station on HSC property at Orr Road. ITC anticipates project construction will be complete in spring 2009.

HSC, one of the largest employers in the region, has indicated it will need more power to accommodate its growth through 2011. This request, in tandem with ITC's assessment that the current grid could not continue to reliably serve the power needs of the region, spurred initial planning and development of the Midland Project.

"ITC's Murphy Station will help assure the delivery of reliable electricity to HSC," said Jim Cross, HSC site manager. "This is essential to the success of our expanding polysilicon operations, as we seek to support the tremendous growth of customers in the solar and electronics industries."

To date, ITC has invested nearly $900 million in capital project maintenance and transmission infrastructure improvements since 2003. This investment is essential to improved system reliability, reduced congestion and facilitation of additional power generators, including renewable generators, onto the grid. It also provides a critical tax base to local communities.

"The township is fortunate to have such an economically and financially significant project as Murphy Station being constructed within its borders," said Joel Wardin, supervisor, Richland Township. "These are challenging times for the entire region and state and a project of this magnitude will not only strengthen the local tax base but provide economic opportunities to local businesses at the same time. I am delighted we have the ongoing support of such vibrant corporations as ITC and HSC and are proud to partner with them on these types of developments."

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, Michigan Electric Transmission Company, LLC (METC) and ITC Midwest LLC, ITC operates regulated, high-voltage transmission systems in Michigan's Lower Peninsula and portions of Iowa, Minnesota, Illinois and Missouri serving a combined peak load in excess of 25,000 megawatts. ITC is also focused on new areas where significant transmission system improvements are needed through subsidiaries ITC Grid Development, ITC Great Plains and ITC Panhandle Transmission. For more information, please visit: http://www.itc-holdings.com. (itc-ITC)

Investor/Analyst contact:
Pat Wenzel
(248.946.3570)
pwenzel@itc-holdings.com