Novi, MI, Dec. 21, 2006 — The Federal Energy Regulatory Commission (FERC) has conditionally approved a joint filing made by the Midwest Independent Transmission System Operator Inc. and Michigan Electric Transmission Company (METC), a subsidiary of ITC Holdings Corp., to allow METC to recover its expenses and investments in transmission property, plant and equipment on a current rather than on a historical basis. As a result, METC will now collect revenues based on current investments.
As part of a seven-year program, METC plans to invest approximately $600 million to rebuild and upgrade existing equipment, relieve congestion, enhance system reliability and provide access to generation sources.
“FERC’s recent approval of METC’s forward-looking Attachment O not only better positions us to be able to invest in transmission for the benefit of our customers, but it also demonstrates FERC’s continued support of transmission infrastructure investments,” said Joseph L. Welch, president and CEO of ITC Holdings. “As a new subsidiary of ITC Holdings, we plan to leverage our expertise and continue in efforts to rebuild the transmission grid.”
The FERC order authorizes METC to use an annual forward-looking test period for rates commencing January 1 through December 31 of that same year. FERC also approved a true-up mechanism to correct for any differences between billed revenue based on forecasted costs and investment and revenues needed to recover actual costs and services. METC’s forward-looking Attachment O is also subject to the outcome of METC’s rate case currently pending in FERC Docket No. ER06-56.