NOVI, Mich., Dec. 18 /PRNewswire-FirstCall/ -- The Minnesota Public Utilities Commission (MPUC) today voted to approve the sale of the transmission assets of Interstate Power and Light (IPL) by ITC Midwest LLC. The MPUC's determination was made effective today.
The decision now clears the way for ITC Midwest to purchase 6,800 miles of transmission lines and stations in Iowa, Illinois, Minnesota and Missouri from IPL. ITC Midwest is a subsidiary of ITC Holdings Corp. ; IPL is a subsidiary of Alliant Energy Corp. .
ITC Midwest signed an agreement in January to purchase, own and operate IPL's 34.5 kV and above transmission lines and station facilities in Iowa, Illinois, Minnesota and Missouri for approximately $750 million, subject to various adjustments at closing, and pursuant to all regulatory approvals. The MPUC decision was the final regulatory approval needed for the transaction; ITC Midwest and IPL received prior approval for the transaction from the Federal Energy Regulatory Commission (FERC), the Federal Trade Commission and the states of Iowa, Illinois and Missouri.
"We are delighted with the outcome of the Commission's decision and the trust the state has placed in ITC's ability to establish a robust, reliable transmission system in Minnesota," said Joseph L. Welch, president and CEO, ITC. "We are, in fact, gratified by the confidence and importance that all of the regulatory agencies have placed in the independent transmission model and our ability to successfully operate and manage a regional electric grid in the Midwest.
"ITC's ownership will bring the benefits of independent transmission - improved reliability, less congestion, creation of an open energy market and facilitation of renewable resources - to the states of Iowa, Illinois and Minnesota," Welch continued. "It will further ensure that critical capital investments are made in the high-voltage electric systems in these states. These investments are essential for supporting future economic growth in Midwestern communities. ITC Midwest will leverage our industry expertise and experience on behalf of its customers."
ITC's purchase of IPL's transmission assets represents the company's first purchase of high voltage electric lines outside the state of Michigan. Since its inception in 2003, ITC has pursued aggressive improvements in the transmission system in Michigan's Lower Peninsula. The company is successfully implementing a seven-year, $1.6 billion capital improvement plan in the state. It is also exploring construction of an extra-high voltage 765 kV line that would link the state to 765 kV service lines in Ohio and Indiana, thus producing an extra-high voltage regional transmission infrastructure that would facilitate lower energy costs, higher reliability and renewable resources.
"ITC Midwest ownership of the transmission system in Minnesota will result in significant investments in the state's electric grid," Welch noted. "Project commitments will reduce known constraints on the system and reduce energy costs to customers approximately $40 million per year.
"We look forward to working with each of the states to address their energy needs and put the benefits of independent transmission to work for customers in this region," Welch concluded.
ITC Midwest and IPL expect to close on the acquisition of the transmission assets by year end.
About ITC Holdings Corp.
ITC Holdings Corp. 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 and Michigan Electric Transmission Company (METC), ITC operates contiguous, regulated, high-voltage transmission systems in Michigan's Lower Peninsula serving a combined peak load in excess of 22,000 megawatts. ITC is also focused on new areas where significant transmission system improvements are needed through subsidiaries ITC Midwest, ITC Grid Development, ITC Great Plains and ITC Panhandle Transmission. For more information, please visit: http://www.itc-holdings.com/. (itc-ITC)
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This press release contains certain statements that describe our management's beliefs concerning future business conditions and prospects, growth opportunities and the outlook for our business and the electricity transmission industry based upon information currently available. Such statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as "will," "may," "anticipates," "believes," "intends," "estimates," "expects," "projects" and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among other factors, the risks factors listed in Part I, Item 1A - Risk Factors of our Form 10-K for the fiscal year ended December 31, 2006 (as updated in our Quarterly Reports on Form 10-Q).
Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward- looking statements may turn out to be wrong. Forward-looking statements speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in our discussion in this release will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Actual future results may vary materially. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise.
