Transmission grid expansion plans advance

Topeka, KS, Feb. 6, 2008 — ITC Great Plains’ plans to invest in transmission infrastructure improvements in Kansas are one step closer to reality because of two important decisions rendered last week that prioritize the state’s electric projects and addresses cost recovery associated with the projects. ITC Great Plains is a subsidiary of ITC Holdings Corp.

By the action of its regional state committee, Southwest Power Pool Inc. (SPP), the organization overseeing regional transmission planning in several states including Kansas, has approved developing a new rate structure for qualifying capital projects that apportions the costs of the projects over a broader geographic area, commonly referred to in the industry as a “postage stamp rate.” SPP also approved its 2008-2017 Transmission Expansion Plan (STEP) document, which includes two high-voltage transmission projects sponsored by ITC Great Plains.

Both SPP actions will have a positive impact on ITC’s push to improve electric reliability and facilitate renewable resources, said the company.

ITC Great Plains announced last year that it would pursue the approvals needed to build two new transmission projects: a 180-mile high voltage line running between Spearville, Kan., and Axtell, Nebraska that has been awarded to ITC Great Plains by the Kansas Electric Transmission Authority (KETA); and the Kansas V plan, another 180-mile line connecting Spearville to Wichita.

ITC Great Plains is working through the process to qualify both projects for the balanced portfolio of projects for which the postage stamp rate is applicable. The company also will continue to pursue regulatory approvals with the Kansas Corporation Commission and the Federal Energy Regulatory Commission (FERC).

The postage stamp rate is SPP’s first cost allocation mechanism for transmission infrastructure projects it designates as “economic.” The effect of this postage stamp rate will be to spread the costs of transmission projects across a broader customer base.

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