ITC » Topics » Development of Business

These excerpts taken from the ITC 10-K filed Feb 26, 2009.
Development of Business
 
We are pursuing strategic development opportunities for transmission construction related to building super-regional 765 kV transmission facilities to facilitate interconnections for wind generation and other renewable resources. For example, we are pursuing the opportunity to invest in the Green Power Express project, a transmission project that will traverse portions of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana and would ultimately include approximately 3,000 miles of extra high-voltage (765kV) transmission. The entire project is currently estimated to cost approximately $10 to $12 billion. Portions of the Green Power Express project fall within the service territory of ITC Midwest. ITC Holdings expects to partner with other affected utilities within the Green Power Express project regions and would therefore only invest in a portion of the total project cost. In addition to the Green Power Express project, based on proposals by RTOs, including MISO and the SPP, we are exploring additional strategic opportunities to upgrade the transmission grid within the MISO and SPP regions and surrounding regions with a backbone 765 kV transmission network. Based on the anticipated growth of wind generation resources, we also foresee the need to construct additional transmission facilities that will provide interconnection opportunities for those wind facilities. The backbone 765 kV transmission network, transmission for wind interconnection and for interconnection of other renewable generating facilities may provide additional investment opportunities. The total investment opportunities estimated for our investment in the Green Power Express project, other backbone 765kV transmission networks, wind interconnection and other transmission for other renewable facilities are estimated to be up to $10 billion. Further, we are pursuing the opportunity to invest in two projects in Kansas, known as the Spearville-Knoll-Axtell transmission project (the “KETA Project”) and the Kansas V-Plan transmission project running from Spearville substation near Dodge City to Wichita through subsidiaries of ITC Grid Development. The capital investment for these two projects is anticipated to be between approximately $500 million and $1 billion. In January 2009, we filed an application with the FERC to establish a formula rate for these two


4


Table of Contents

projects and other projects within the SPP region. Additionally, we believe we may have the opportunity to invest approximately $1 billion to $2 billion in other Extra High Voltage Overlay projects that have been identified by the SPP. We are also exploring opportunities to invest up to approximately $1.3 billion to build a new 765 kV transmission facility across the southern portion of Michigan’s Lower Peninsula. We cannot predict if or when these investment opportunities will begin, or their duration. Refer to the discussion of risks associated with our strategic development opportunities in “Item 1A Risk Factors — Our Regulated Operating Subsidiaries’ actual capital expenditures may be lower than planned, which would decrease expected rate base and therefore our revenues. In addition, we expect to pursue strategic development opportunities to improve the efficiency and reliability of the transmission grid, but we cannot assure you that we will be able to initiate or complete any of these investments.”
 
Development of Business
 
We are pursuing strategic development opportunities for transmission construction related to building super-regional 765 kV transmission facilities to facilitate interconnections for wind generation and other renewable resources. For example, we are pursuing the opportunity to invest in the Green Power Express project, a transmission project that will traverse portions of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana and would ultimately include approximately 3,000 miles of extra high-voltage (765kV) transmission. The entire project is currently estimated to cost approximately $10 to $12 billion. Portions of the Green Power Express project fall within the service territory of ITC Midwest. ITC Holdings expects to partner with other affected utilities within the Green Power Express project regions and would therefore only invest in a portion of the total project cost. In addition to the Green Power Express project, based on proposals by RTOs, including MISO and the SPP, we are exploring additional strategic opportunities to upgrade the transmission grid within the MISO and SPP regions and surrounding regions with a backbone 765 kV transmission network. Based on the anticipated growth of wind generation resources, we also foresee the need to construct additional transmission facilities that will provide interconnection opportunities for those wind facilities. The backbone 765 kV transmission network, transmission for wind interconnection and for interconnection of other renewable generating facilities may provide additional investment opportunities. The total investment opportunities estimated for our investment in the Green Power Express project, other backbone 765kV transmission networks, wind interconnection and other transmission for other renewable facilities are estimated to be up to $10 billion. Further, we are pursuing the opportunity to invest in two projects in Kansas, known as the Spearville-Knoll-Axtell transmission project (the “KETA Project”) and the Kansas V-Plan transmission project running from Spearville substation near Dodge City to Wichita through subsidiaries of ITC Grid Development. The capital investment for these two projects is anticipated to be between approximately $500 million and $1 billion. In January 2009, we filed an application with the FERC to establish a formula rate for these two


4


Table of Contents

projects and other projects within the SPP region. Additionally, we believe we may have the opportunity to invest approximately $1 billion to $2 billion in other Extra High Voltage Overlay projects that have been identified by the SPP. We are also exploring opportunities to invest up to approximately $1.3 billion to build a new 765 kV transmission facility across the southern portion of Michigan’s Lower Peninsula. We cannot predict if or when these investment opportunities will begin, or their duration. Refer to the discussion of risks associated with our strategic development opportunities in “Item 1A Risk Factors — Our Regulated Operating Subsidiaries’ actual capital expenditures may be lower than planned, which would decrease expected rate base and therefore our revenues. In addition, we expect to pursue strategic development opportunities to improve the efficiency and reliability of the transmission grid, but we cannot assure you that we will be able to initiate or complete any of these investments.”
 
Development of Business
 
We are pursuing strategic development opportunities for transmission construction related to building super-regional 765 kV transmission facilities to facilitate interconnections for wind generation and other renewable resources. For example, we are pursuing the opportunity to invest in the Green Power Express project, a transmission project that will traverse portions of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana and would ultimately include approximately 3,000 miles of extra high-voltage (765kV) transmission. The entire project is currently estimated to cost approximately $10 to $12 billion. Portions of the Green Power Express project fall within the service territory of ITC Midwest. ITC Holdings expects to partner with other affected utilities within the Green Power Express project regions and would therefore only invest in a portion of the total project cost. In addition to the Green Power Express project, based on proposals by RTOs, including MISO and the SPP, we are exploring additional strategic opportunities to upgrade the transmission grid within the MISO and SPP regions and surrounding regions with a backbone 765 kV transmission network. Based on the anticipated growth of wind generation resources, we also foresee the need to construct additional transmission facilities that will provide interconnection opportunities for those wind facilities. The backbone 765 kV transmission network, transmission for wind interconnection and for interconnection of other renewable generating facilities may provide additional investment opportunities. The total investment opportunities estimated for our investment in the Green Power Express project, other backbone 765kV transmission networks, wind interconnection and other transmission for other renewable facilities are estimated to be up to $10 billion. Further, we are pursuing the opportunity to invest in two projects in Kansas, known as the Spearville-Knoll-Axtell transmission project (the “KETA Project”) and the Kansas V-Plan transmission project running from Spearville substation near Dodge City to Wichita through subsidiaries of ITC Grid Development. The capital investment for these two projects is anticipated to be between approximately $500 million and $1 billion. In January 2009, we filed an application with the FERC to establish a formula rate for these two


4


Table of Contents

projects and other projects within the SPP region. Additionally, we believe we may have the opportunity to invest approximately $1 billion to $2 billion in other Extra High Voltage Overlay projects that have been identified by the SPP. We are also exploring opportunities to invest up to approximately $1.3 billion to build a new 765 kV transmission facility across the southern portion of Michigan’s Lower Peninsula. We cannot predict if or when these investment opportunities will begin, or their duration. Refer to the discussion of risks associated with our strategic development opportunities in “Item 1A Risk Factors — Our Regulated Operating Subsidiaries’ actual capital expenditures may be lower than planned, which would decrease expected rate base and therefore our revenues. In addition, we expect to pursue strategic development opportunities to improve the efficiency and reliability of the transmission grid, but we cannot assure you that we will be able to initiate or complete any of these investments.”
 
Development of
Business



 



We are pursuing strategic development opportunities for
transmission construction related to building super-regional 765
kV transmission facilities to facilitate interconnections for
wind generation and other renewable resources. For example, we
are pursuing the opportunity to invest in the Green Power
Express project, a transmission project that will traverse
portions of North Dakota, South Dakota, Minnesota, Iowa,
Wisconsin, Illinois and Indiana and would ultimately include
approximately 3,000 miles of extra high-voltage (765kV)
transmission. The entire project is currently estimated to cost
approximately $10 to $12 billion. Portions of the Green
Power Express project fall within the service territory of ITC
Midwest. ITC Holdings expects to partner with other affected
utilities within the Green Power Express project regions and
would therefore only invest in a portion of the total project
cost. In addition to the Green Power Express project, based on
proposals by RTOs, including MISO and the SPP, we are exploring
additional strategic opportunities to upgrade the transmission
grid within the MISO and SPP regions and surrounding regions
with a backbone 765 kV transmission network. Based on the
anticipated growth of wind generation resources, we also foresee
the need to construct additional transmission facilities that
will provide interconnection opportunities for those wind
facilities. The backbone 765 kV transmission network,
transmission for wind interconnection and for interconnection of
other renewable generating facilities may provide additional
investment opportunities. The total investment opportunities
estimated for our investment in the Green Power Express project,
other backbone 765kV transmission networks, wind interconnection
and other transmission for other renewable facilities are
estimated to be up to $10 billion. Further, we are pursuing
the opportunity to invest in two projects in Kansas, known as
the Spearville-Knoll-Axtell transmission project (the “KETA
Project”) and the Kansas V-Plan transmission project
running from Spearville substation near Dodge City to Wichita
through subsidiaries of ITC Grid Development. The capital
investment for these two projects is anticipated to be between
approximately $500 million and $1 billion. In January
2009, we filed an application with the FERC to establish a
formula rate for these two





4





Table of Contents






projects and other projects within the SPP region. Additionally,
we believe we may have the opportunity to invest approximately
$1 billion to $2 billion in other Extra High Voltage
Overlay projects that have been identified by the SPP. We are
also exploring opportunities to invest up to approximately
$1.3 billion to build a new 765 kV transmission facility
across the southern portion of Michigan’s Lower Peninsula.
We cannot predict if or when these investment opportunities will
begin, or their duration. Refer to the discussion of risks
associated with our strategic development opportunities in
“Item 1A Risk Factors — Our Regulated
Operating Subsidiaries’ actual capital expenditures may be
lower than planned, which would decrease expected rate base and
therefore our revenues. In addition, we expect to pursue
strategic development opportunities to improve the efficiency
and reliability of the transmission grid, but we cannot assure
you that we will be able to initiate or complete any of these
investments.”


 




Development of
Business



 



We are pursuing strategic development opportunities for
transmission construction related to building super-regional 765
kV transmission facilities to facilitate interconnections for
wind generation and other renewable resources. For example, we
are pursuing the opportunity to invest in the Green Power
Express project, a transmission project that will traverse
portions of North Dakota, South Dakota, Minnesota, Iowa,
Wisconsin, Illinois and Indiana and would ultimately include
approximately 3,000 miles of extra high-voltage (765kV)
transmission. The entire project is currently estimated to cost
approximately $10 to $12 billion. Portions of the Green
Power Express project fall within the service territory of ITC
Midwest. ITC Holdings expects to partner with other affected
utilities within the Green Power Express project regions and
would therefore only invest in a portion of the total project
cost. In addition to the Green Power Express project, based on
proposals by RTOs, including MISO and the SPP, we are exploring
additional strategic opportunities to upgrade the transmission
grid within the MISO and SPP regions and surrounding regions
with a backbone 765 kV transmission network. Based on the
anticipated growth of wind generation resources, we also foresee
the need to construct additional transmission facilities that
will provide interconnection opportunities for those wind
facilities. The backbone 765 kV transmission network,
transmission for wind interconnection and for interconnection of
other renewable generating facilities may provide additional
investment opportunities. The total investment opportunities
estimated for our investment in the Green Power Express project,
other backbone 765kV transmission networks, wind interconnection
and other transmission for other renewable facilities are
estimated to be up to $10 billion. Further, we are pursuing
the opportunity to invest in two projects in Kansas, known as
the Spearville-Knoll-Axtell transmission project (the “KETA
Project”) and the Kansas V-Plan transmission project
running from Spearville substation near Dodge City to Wichita
through subsidiaries of ITC Grid Development. The capital
investment for these two projects is anticipated to be between
approximately $500 million and $1 billion. In January
2009, we filed an application with the FERC to establish a
formula rate for these two





4





Table of Contents






projects and other projects within the SPP region. Additionally,
we believe we may have the opportunity to invest approximately
$1 billion to $2 billion in other Extra High Voltage
Overlay projects that have been identified by the SPP. We are
also exploring opportunities to invest up to approximately
$1.3 billion to build a new 765 kV transmission facility
across the southern portion of Michigan’s Lower Peninsula.
We cannot predict if or when these investment opportunities will
begin, or their duration. Refer to the discussion of risks
associated with our strategic development opportunities in
“Item 1A Risk Factors — Our Regulated
Operating Subsidiaries’ actual capital expenditures may be
lower than planned, which would decrease expected rate base and
therefore our revenues. In addition, we expect to pursue
strategic development opportunities to improve the efficiency
and reliability of the transmission grid, but we cannot assure
you that we will be able to initiate or complete any of these
investments.”


 




Development of
Business



 



We are pursuing strategic development opportunities for
transmission construction related to building super-regional 765
kV transmission facilities to facilitate interconnections for
wind generation and other renewable resources. For example, we
are pursuing the opportunity to invest in the Green Power
Express project, a transmission project that will traverse
portions of North Dakota, South Dakota, Minnesota, Iowa,
Wisconsin, Illinois and Indiana and would ultimately include
approximately 3,000 miles of extra high-voltage (765kV)
transmission. The entire project is currently estimated to cost
approximately $10 to $12 billion. Portions of the Green
Power Express project fall within the service territory of ITC
Midwest. ITC Holdings expects to partner with other affected
utilities within the Green Power Express project regions and
would therefore only invest in a portion of the total project
cost. In addition to the Green Power Express project, based on
proposals by RTOs, including MISO and the SPP, we are exploring
additional strategic opportunities to upgrade the transmission
grid within the MISO and SPP regions and surrounding regions
with a backbone 765 kV transmission network. Based on the
anticipated growth of wind generation resources, we also foresee
the need to construct additional transmission facilities that
will provide interconnection opportunities for those wind
facilities. The backbone 765 kV transmission network,
transmission for wind interconnection and for interconnection of
other renewable generating facilities may provide additional
investment opportunities. The total investment opportunities
estimated for our investment in the Green Power Express project,
other backbone 765kV transmission networks, wind interconnection
and other transmission for other renewable facilities are
estimated to be up to $10 billion. Further, we are pursuing
the opportunity to invest in two projects in Kansas, known as
the Spearville-Knoll-Axtell transmission project (the “KETA
Project”) and the Kansas V-Plan transmission project
running from Spearville substation near Dodge City to Wichita
through subsidiaries of ITC Grid Development. The capital
investment for these two projects is anticipated to be between
approximately $500 million and $1 billion. In January
2009, we filed an application with the FERC to establish a
formula rate for these two





4





Table of Contents






projects and other projects within the SPP region. Additionally,
we believe we may have the opportunity to invest approximately
$1 billion to $2 billion in other Extra High Voltage
Overlay projects that have been identified by the SPP. We are
also exploring opportunities to invest up to approximately
$1.3 billion to build a new 765 kV transmission facility
across the southern portion of Michigan’s Lower Peninsula.
We cannot predict if or when these investment opportunities will
begin, or their duration. Refer to the discussion of risks
associated with our strategic development opportunities in
“Item 1A Risk Factors — Our Regulated
Operating Subsidiaries’ actual capital expenditures may be
lower than planned, which would decrease expected rate base and
therefore our revenues. In addition, we expect to pursue
strategic development opportunities to improve the efficiency
and reliability of the transmission grid, but we cannot assure
you that we will be able to initiate or complete any of these
investments.”


 




These excerpts taken from the ITC 10-K filed Feb 29, 2008.
Development of Business
 
During 2007, we acquired the electric transmission assets of IP&L through ITC Midwest. Refer to Note 4 to the consolidated financial statements for a discussion of our recent acquisitions.
 
We are seeking to develop broader potential strategic development opportunities for transmission construction related to building super regional 765 kV transmission facilities, interconnections for wind generation resources, and investment opportunities through subsidiaries of ITC Grid Development. For example, we believe there may be opportunities to invest up to $1.3 billion in a joint venture with American Electric Power Company, Inc. to build a new 765 kV transmission facility across the southern portion of Michigan’s Lower Peninsula. In addition, based on proposals by RTOs, including MISO and the Southwest Power Pool (“SPP”), we are exploring strategic opportunities to upgrade the transmission grid within the MISO and SPP regions and surrounding regions with a backbone, super high voltage 765 kV transmission network. Based on the anticipated growth of wind generation resources, we also foresee the need to construct wind interconnection facilities. We also foresee opportunities for construction of transmission facilities through projects being pursued by subsidiaries of ITC Grid Development. We cannot predict when or if these development opportunities may begin, or their duration. Please see “Item 1A Risk Factors — We expect to pursue strategic development opportunities to improve the efficiency and reliability of the transmission grid, but we cannot assure you that we will be able to initiate or complete any of these investments.”
 
Development of
Business



 



During 2007, we acquired the electric transmission assets of
IP&L through ITC Midwest. Refer to Note 4 to the
consolidated financial statements for a discussion of our recent
acquisitions.


 



We are seeking to develop broader potential strategic
development opportunities for transmission construction related
to building super regional 765 kV transmission facilities,
interconnections for wind generation resources, and investment
opportunities through subsidiaries of ITC Grid Development. For
example, we believe there may be opportunities to invest up to
$1.3 billion in a joint venture with American Electric
Power Company, Inc. to build a new 765 kV transmission facility
across the southern portion of Michigan’s Lower Peninsula.
In addition, based on proposals by RTOs, including MISO and the
Southwest Power Pool (“SPP”), we are exploring
strategic opportunities to upgrade the transmission grid within
the MISO and SPP regions and surrounding regions with a
backbone, super high voltage 765 kV transmission network. Based
on the anticipated growth of wind generation resources, we also
foresee the need to construct wind interconnection facilities.
We also foresee opportunities for construction of transmission
facilities through projects being pursued by subsidiaries of ITC
Grid Development. We cannot predict when or if these development
opportunities may begin, or their duration. Please see
“Item 1A Risk Factors — We expect to pursue
strategic development opportunities to improve the efficiency
and reliability of the transmission grid, but we cannot assure
you that we will be able to initiate or complete any of these
investments.”


 




This excerpt taken from the ITC 10-K filed Mar 8, 2007.
Development of Business
 
In July 2006, ITC Holdings formed two new subsidiaries — ITC Grid Development and ITC Great Plains. As an extension of our existing strategy, ITC Grid Development was formed to focus on bringing improvements to the U.S. electricity transmission infrastructure by partnering with entities in regions where we believe significant investment is needed to improve reliability and address local energy needs. ITC Great Plains, which has opened an office in Topeka, Kansas, was formed to focus on opportunities for transmission investment in Kansas and the Great Plains region. In Kansas, and in other states or regions where we may engage in operations through our two new subsidiaries, we expect to partner with local experts, such as firms that specialize in design and engineering, and other entities in order to achieve our objectives of enhancing the U.S. transmission grid and providing the framework for lower electric energy costs. These subsidiaries are working to identify and are expected to eventually undertake projects consisting of upgrades to existing electricity transmission systems as well as the construction of new electricity transmission systems or portions of systems. We expect to pursue only development opportunities that are consistent with ITCTransmission’s and METC’s business model, such as those that are anticipated to result in the creation of a FERC-regulated entity using formula-based rates.
 
On October 10, 2006, ITC Holdings acquired indirect ownership of all the partnership interests in MTH, the sole member of METC (the “METC Acquisition”). The former indirect owners of the MTH partnership interests received $484.4 million in cash and 2,195,045 shares of our common stock valued at $72.5 million. In addition, we assumed approximately $307.7 million of MTH and METC debt and other long term interest bearing obligations. As part of the METC Acquisition, ITC Holdings acquired the


3


Table of Contents

partnership interests of other subsidiaries, including subsidiaries that contributed federal income tax net operating loss carryforwards (“NOLs”).
 
On January 19, 2007, we announced that our newly formed subsidiary, ITC Midwest had signed a definitive agreement to acquire for cash the transmission assets of Interstate Power and Light Company (“IP&L”) in a transaction valued at approximately $750.0 million, excluding expenses.
 
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki