ITC Holdings Reports Increase In 2009 First Quarter Earnings of 12.6 Percent Over...

ITC Holdings Reports Increase In 2009 First Quarter Earnings of 12.6 Percent
Over 2008

Highlights

- Net income for the first quarter of $28.7 million, or $0.57 per diluted
common share

- Capital investments of $85.2 million for three months ended March 31, 2009

- 2009 EPS guidance of $2.20 to $2.30 per common share and capital expenditure
guidance of $270 million to $325 million reaffirmed

NOVI, Mich., April 29 /PRNewswire-FirstCall/ -- ITC Holdings Corp. (NYSE: ITC)
today announced its first quarter results for the period ended March 31, 2009.
Net income for the quarter was $28.7 million, or $0.57 per diluted common
share, compared to $25.5 million, or $0.52 per diluted common share for the
first quarter of 2008.

"In the first quarter of 2009, ITC experienced strong earnings growth compared
to the first quarter of 2008 resulting from our on-going capital investment
program," said Joseph L. Welch, chairman, president and CEO of ITC. "We are
pleased that we continue to deliver solid financial performance year over
year, particularly in light of the difficult economic environment in which we
are operating."

In the first quarter of 2009, ITCTransmission invested $20.4 million, METC
$31.0 million and ITC Midwest $33.8 million in their respective transmission
systems.

(in thousands, except per share data) Three months ended
March 31,
2009 2008

OPERATING REVENUES $155,941 $141,914

NET INCOME $28,725 $25,521

DILUTED EPS (1) $0.57 $0.52

CAPITAL INVESTMENTS $85,200 $96,100

Reported net income for the first quarter of 2009 increased $3.2 million, or
$0.05 per fully diluted common share compared to the same period in 2008. Key
drivers that contributed to these results include:

-- Net income increased primarily due to higher rate base at
ITCTransmission, METC and ITC Midwest, partially offset by lower
allowance for funds used during construction (AFUDC).
-- Net income also benefited in 2009 due to lower interest expense at ITC
Holdings. The first quarter of 2008 had higher interest expense as a
result of the $765 million bridge loan associated with ITC
Midwest's asset acquisition that was outstanding most of January.
On January 24, 2008, the full amount outstanding under the bridge
facility was repaid using the proceeds of ITC Holdings' $385
million senior notes, ITC Midwest's $175 million first mortgage
bonds and the issuance of 6.4 million shares of common equity.
-- These increases in net income were partially offset by higher
non-recoverable G&A expenses, including development expenses at ITC
Great Plains, ITC Grid Development and Green Power Express.

-- Diluted earnings per common share increased due to the higher net
income, partially offset by the impact of higher weighted average
common
shares outstanding as a result of the equity issuance noted above.

2009 Guidance
For 2009, ITC continues to expect earnings per diluted common share of $2.20
to $2.30 as previously disclosed. Capital investments for 2009 are expected
to be approximately $270 million - $325 million, including $70-$85 million,
$110-$130 million and $90-$110 million for ITCTransmission, METC and ITC
Midwest, respectively.

First Quarter 2009 Financial Results Detail
ITC's operating revenues for the quarter increased $14.0 million to $155.9
million from $141.9 million last year. Network revenues increased by $10.3
million primarily due to higher rate base resulting from higher balances of
in-service property, plant and equipment. Regional cost sharing revenues were
$5.8 million higher in the first quarter of 2009 compared to 2008. These
revenue increases in 2009 resulted from more capital projects being eligible
for regional cost sharing under the Midwest ISO's tariff.

Operation & maintenance (O&M) expenses of $23.7 million were $2.3 million
higher in the first quarter of 2009 compared to the same period in 2008. O&M
expenses increased due primarily to higher transmission equipment inspections,
vehicle expenses and vegetation management.

General and administrative (G&A) expenses of $19.9 million for the first
quarter of 2009 were $1.9 million higher than the same period in 2008. G&A
expenses increased by $2.1 million due to higher professional advisory and
consulting services, $0.9 million due to higher compensation expenses
primarily resulting from personnel additions and $0.8 million due to higher
business expenses primarily for information technology support. General and
administrative expenses also increased by $2.1 million at ITC Grid Development
and its subsidiaries as a result of increased development activities.
Partially offsetting these increases were lower expenses of $2.8 million as a
result of higher capitalization of G&A expenses in the quarter and lower
bonus-related expenses of $1.6 million.

Depreciation and amortization expenses increased by $4.2 million in the first
quarter of 2009 compared to the first quarter of 2008 due primarily to a
higher depreciable asset base resulting from property, plant and equipment
additions.

The effective income tax rate for the three months ended March 31, 2009 was
37.1 percent compared to 38.2 percent in the first quarter of 2008.

First Quarter Conference Call
ITC will conduct a conference call to discuss first quarter 2009 earnings
results at 11:00 a.m. ET on April 30, 2009. Joseph L. Welch, chairman,
president and CEO, will provide a business overview and Cameron M. Bready,
senior vice president, treasurer and CFO, will discuss the financial results
of the first quarter 2009. Individuals wishing to participate in the
conference call may dial toll-free (877) 419-6591 (domestic) or (719) 325-4868
(international); there is no passcode. The conference call replay, available
through May 8, 2009 can be accessed by dialing toll-free (888) 203-1112
(domestic) or (719) 457-0820 (international), passcode 8144728. Investors,
the news media and the public may listen to a live internet broadcast of the
meeting at http://investor.itc-holdings.com. The webcast also will be archived
on the ITC website at http://investor.itc-holdings.com.

Other Available Information
More detail about the 2009 first quarter results may be found in ITC's Form
10-Q filing. Once filed with the Securities and Exchange Commission, an
electronic copy of our 10-Q can be found at our website,
http://investor.itc-holdings.com. Written copies can also be made available by
contacting us either through our website or the phone listings below.

About ITC Holdings Corp.
ITC Holdings Corp. (NYSE: ITC) 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, Michigan Electric Transmission Company, LLC (METC) and ITC
Midwest LLC, ITC operates regulated, high-voltage transmission systems in
Michigan's Lower Peninsula and portions of Iowa, Minnesota, Illinois and
Missouri serving a combined peak load in excess of 25,000 megawatts. ITC is
also focused on new areas where significant transmission system improvements
are needed through subsidiaries ITC Grid Development, ITC Great Plains and ITC
Panhandle Transmission. For more information, please visit:
http://www.itc-holdings.com. (itc-ITC)

Safe Harbor Statement
This press release contains certain statements that describe our management's
beliefs concerning future business conditions, plans 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 others, the risks and
uncertainties disclosed in our annual report on Form 10-K and our quarterly
reports on Form 10-Q filed with the Securities and Exchange Commission from
time to time.

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 and in our annual and quarterly
reports 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.

(1) During 2009, ITC adopted Financial Accounting Standards Board Staff
Position No. EITF 03-6-1, Determining Whether Instruments Granted in
Share-Based Payment Transactions Are Participating Securities ("FSP EITF
03-6-1"). The retroactive application required under FSP EITF 03-6-1 resulted
in a decrease to both basic and diluted earnings per common share amounts of
$0.01 per share for the 1st quarter 2008 as compared to the previously
reported amounts for that period.

ITC HOLDINGS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
Three months ended
March 31,
2009 2008

OPERATING REVENUES $155,941 $141,914

OPERATING EXPENSES

Operation and maintenance 23,741 21,455
General and administrative 19,893 17,982
Depreciation and amortization 26,548 22,324
Taxes other than income taxes 11,098 10,885
Total operating expenses 81,280 72,646

OPERATING INCOME 74,661 69,268

OTHER EXPENSES (INCOME)

Interest expense 31,593 30,770
Allowance for equity funds used during
construction (2,766) (3,096)
Other income (683) (514)
Other expense 864 841
Total other expenses (income) 29,008 28,001

INCOME BEFORE INCOME TAXES 45,653 41,267

INCOME TAX PROVISION 16,928 15,746

NET INCOME $28,725 $25,521

Basic earnings per common share $0.58 $0.53
Diluted earnings per common share $0.57 $0.52

Dividends declared per common share $0.305 $0.290

ITC HOLDINGS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)
(in thousands, except share data)

ASSETS March 31, December 31,
Current assets 2009 2008

Cash and cash equivalents $26,823 $58,110
Accounts receivable 60,026 57,638
Inventory 29,422 25,077
Regulatory assets - Attachment O revenue accrual
(including accrued interest of $1,823 and
$1,637, respectively) 37,424 22,301
Other 6,594 4,147
Total current assets 160,289 167,273

Property, plant and equipment (net of
accumulated depreciation and amortization of
$944,475 and $925,890, respectively) 2,369,835 2,304,386
Other assets
Goodwill 951,319 951,319
Intangible assets (net of accumulated
amortization of $6,806 and $6,050,
respectively) 51,601 52,357
Regulatory assets - Attachment O revenue accrual
(including accrued interest of $1,377 and
$1,512, respectively) 72,900 81,643
Regulatory assets - acquisition adjustments (net
of accumulated amortization of $23,740 and
$22,393, respectively) 79,318 80,665
Other regulatory assets 40,580 39,848
Deferred financing fees (net of accumulated
amortization of $7,300 and $8,048,
respectively) 20,893 21,410
Other 19,841 15,664
Total other assets 1,236,452 1,242,906
TOTAL ASSETS $3,766,576 $3,714,565

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $63,803 $79,403
Accrued payroll 4,542 10,331
Accrued interest 15,661 37,779
Deferred income taxes 11,223 6,476
Accrued taxes 16,462 18,104
Refundable deposits from generators for
transmission network upgrades 11,895 8,701
Other 2,850 5,384
Total current liabilities 126,436 166,178
Accrued pension and postretirement liabilities 25,342 24,295
Deferred income taxes 158,066 144,889
Regulatory liabilities 198,374 196,656
Other 21,183 5,231
Long-term debt 2,291,315 2,248,253
STOCKHOLDERS' EQUITY
Common stock, without par value, 100,000,000
shares authorized, 49,742,769 and 49,654,518
shares issued and outstanding at March 31,
2009 and December 31, 2008, respectively 851,851 848,624
Retained earnings 94,821 81,268
Accumulated other comprehensive loss (812) (829)
Total stockholders' equity 945,860 929,063
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,766,576 $3,714,565

ITC HOLDINGS CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three months ended
March 31,
CASH FLOWS FROM OPERATING ACTIVITIES 2009 2008

Net income $28,725 $25,521
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization expense 26,548 22,324
Attachment O revenue accrual - including
accrued interest (12,088) (18,222)
Deferred income tax expense 16,245 14,423
Allowance for equity funds used during
construction (2,766) (3,096)
Other 2,333 3,855
Changes in assets and liabilities,
exclusive of changes shown separately:
Accounts receivable (2,314) (2,790)
Inventory (4,345) 2,110
Regulatory assets - Attachment O revenue
accrual including accrued interest 5,712 -
Other current assets (2,447) (3,151)
Accounts payable (941) 3,369
Accrued payroll (4,588) (3,512)
Accrued interest (22,118) (8,935)
Accrued taxes (1,642) (847)
Other current liabilities (2,537) 425
Other non-current assets and
liabilities, net 1,699 3,206
Net cash provided by
operating activities 25,476 34,680

CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant
and equipment (104,687) (94,564)
ITC Midwest's assets acquisition
direct fees - (933)
Net cash used in investing
activities (104,687) (95,497)

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt - 557,895
Repayments of long-term debt - (765,000)
Borrowings under revolving credit agreements 142,771 164,500
Repayments of revolving credit agreements (99,792) (173,200)
Issuance of common stock 1,031 308,904
Dividends on common stock (15,169) (14,319)
Refundable deposits from generators for
transmission network upgrades 21,516 3,583
Repayment of refundable deposits
from generators for transmission network
upgrades (2,291) -
Debt issuance costs (142) (4,123)
Other - (734)
Net cash provided by financing
activities 47,924 77,506
NET INCREASE/ (DECREASE) IN CASH AND
CASH EQUIVALENTS (31,287) 16,689
CASH AND CASH EQUIVALENTS -
Beginning of period 58,110 2,616
CASH AND CASH EQUIVALENTS -
End of period $26,823 $19,305

SOURCE ITC Holdings Corp.

Investors, Pat Wenzel, +1-248-946-3570, pwenzel@itc-holdings.com, or Media,
Cheryl Eberwein, +1-248-767-1068, ceberwein@itctransco.com, both of ITC
Holdings Corp.