ITC Midwest assumes operations of transmission system

Cedar Rapids, Iowa – Dec. 17, 2008 – ITC Midwest LLC, a wholly owned subsidiary of ITC Holdings Corp., assumed operational control for more than 4,500 miles of transmission lines and 208 substations acquired last year from Alliant Energy’s Interstate Power and Light Co. (IPL) operating subsidiary. ITC Midwest now operates the lines in its Iowa, Minnesota, Illinois and Missouri service territory that carry electricity at 69,000 volts (69 kVs) and higher voltages.

ITC Midwest purchased the transmission lines from IPL in December 2007. ITC Midwest assumes operational control from American Transmission Company LLC (ATC) of Pewaukee, Wisconsin, which had been operating the system on IPL’s behalf since January 2001. ITC Midwest will operate the system out of its Novi, Michigan, operations control center.

Assuming operational control means that ITC Midwest will be responsible for operating and maintaining the electric transmission system, ensuring that it reliably serves customers’ needs and meets all federal and state operating requirements, said ITC Midwest Executive Director Doug Collins.

“This change is the next step in moving ITC Midwest to a fully independent transmission company,” Collins said. “ITC Midwest’s transition to full independence helps ensure that all customers and generators have equal and open access to the regional grid. Open access means that the system is operating as an energy superhighway that benefits everyone.”

Transferring operational control of the higher voltage system is the first phase of the transition. The remaining ITC Midwest lines, operating at 34,500 volts (34.5 kVs) are expected to be transitioned from IPL to ITC Midwest’s control late in 2009.

Since acquiring the lines from IPL, ITC Midwest has been investing in the system. The company is on track to make more than $120 million in capital investments in 2008.

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