State Siting Decision Ignores Reliability Concerns

Feb 25, 2008

NOVI, Mich., Feb 25, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- ITC Holdings Corp.'s subsidiary ITCTransmission (NYSE: ITC) will continue to explore options to pursue construction of a 13.9-mile long transmission line deemed crucial to electric reliability in southeast Michigan.

In response to a Feb. 22 decision by the Michigan Public Service Commission (MPSC) that denies ITCTransmission's request to route the new 345 kilovolt transmission line between Sterling Heights and Royal Oak, ITC President and CEO Joseph L. Welch said "The MPSC's decision does not change well-documented reliability needs in this urban region. ITC is charged by federal mandate with maintaining the capability of the transmission grid to efficiently and effectively serve customers and residents, and this project is critical to the current and long-term energy stability in the region."

ITC noted that the need for this project was reviewed, vetted and approved by the Midwest Independent Transmission System Operator, Inc. (Midwest ISO). The Midwest ISO is charged by the Federal Energy Regulatory Commission with evaluating regional transmission needs.

ITC added that the MPSC's assertion that the company had not demonstrated sufficient need to justify the $150 million line discounts more than two years of the planning, development and evaluation among the company, local communities and the Midwest ISO and the extensive work it did with local units of government to site the line through Sterling Heights, Troy, Clawson, and Royal Oak.

Government officials in the affected communities also expressed concern about the MPSC decision.

"We are disappointed with the Commission's ruling. We believe this project is needed to maintain the reliability of the electric transmission grid in this region," said Harry Drinkwine, superintendent, Dept. of Public Works, Clawson. "We worked very hard with ITC to site the line and coordinate community road projects with its construction. This was a collaborative, carefully considered project, and we are concerned that the MPSC did not spend enough time evaluating its importance to our long-term economic growth."

ITCTransmission began planning and development work on its Bismarck-Troy project in 2005. The line was planned to address significant electric reliability, demand and underinvestment issues in the region.

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: (itc-ITC)

SOURCE ITC Holdings Corp.

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