House Climate Bill Lacks Necessary Transmission Reforms

ITC urges Senate action on necessary energy revisions

NOVI, Mich., June 26 /PRNewswire-FirstCall/ -- ITC Holdings Corp. (NYSE: ITC)
today raised concerns about the lack of needed comprehensive electricity
transmission policy reforms included in the American Clean Energy and Security
Act (ACES) passed by the U.S. House of Representatives. The company also
praised the Senate on its proposal addressing how to plan, build and pay for
transmission in this country.

The House bill includes a historic program to control greenhouse gas emissions
and a new federal mandate for the use of renewable energy resources, but it
has minimal regulatory reforms for transmission. ITC commended efforts by
Energy and Commerce Committee Chairman Henry Waxman (D-CA) and Representative
Jay Inslee (D-WA) to expand the transmission title of the legislation, but the
outcome was a very limited proposal that is far less helpful than its Senate
counter part.

"Chairman Waxman and Rep. Inslee clearly appreciate the critical role
transmission plays in facilitating the achievement of the energy policy goals
and objectives of the legislation, including the development of renewable,
emissions free resources. Unfortunately, they were unable in the limited time
available to craft the needed provisions to be included in the bill," said
Joseph L. Welch, chairman, president and CEO of ITC.

The House bill does not address the issue of how needed transmission will be
paid for, Welch said. While it has provisions related to planning, the
measure essentially only serves to codify the disjointed processes that exist
today. The House bill attempts to address transmission siting by giving the
federal government the ability to step in if states do not site facilities.
But the new provision only applies to the Western Interconnection. Superior,
high quality wind resources are abundant within the Eastern Interconnection.

"Congress cannot fully achieve the objectives of reducing greenhouses gases
set forth in this legislation without significant, additional reforms to the
way transmission is planned, sited and paid for," Welch noted.

Welch pointed out that under the current system of balkanized regulatory
oversight, it is difficult to develop and implement strategically planned,
cross-regional transmission projects. The nation must move beyond parochial
concerns and draft policies that meet the nation's energy security and
environmental goals. The Senate energy bill has the framework required for
Congress to achieve these goals as it moves forward on finalizing legislation,
Welch said.

As the nation's first and largest independent transmission company, ITC has a
unique perspective on the obstacles to strategically developing new
electricity transmission that will help meet the nation's energy goals. A
modern transmission grid, including a high-voltage backbone, will increase
reliability across the system, allow the country to take full advantage of
renewable energy resources and will save the economy billions of dollars each
year through access to lower cost power and reduced congestion charges.

"Grid modernization and regional transmission construction are fundamental to
a national energy policy," Welch said. "In order for this policy to be
effective, it must provide a comprehensive means for addressing current
industry challenges."

ITC has long advocated for modernizing America's overburdened electricity grid
and recently announced the development of its "Green Power Express," a network
of extra high voltage transmission lines that will transport power from
wind-abundant areas of the Upper Midwest to Midwestern and Eastern states that
demand clean, renewable energy. The Green Power Express will be an integral
component to ITC's efforts to create a high voltage backbone that can meet
America's renewable energy goals and eliminate costly inefficiencies in the
grid.

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 (METC) and ITC
Midwest, ITC operates contiguous, 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.itctransco.com (itc-ITC)

SOURCE ITC Holdings Corp.

Investor/Analyst, Pat Wenzel, +1-248-946-3570, pwenzel@itc-holdings.com, or
Media, Cheryl Eberwein, +1-248-767-1068, ceberwein@itctransco.com