FERC Ruling Advances Green Power Express
NOVI, Mich., April 13 /PRNewswire-FirstCall/
In a decision that supports renewable wind resources becoming an important
part of supplying the nation's electric energy needs, the Federal Energy
Regulatory Commission (FERC) approved Green Power Express LP's request for
favorable transmission investment incentives. It also authorized the
establishment of a regulatory asset for development and pre-construction
costs. These approvals will enable the partnership to pursue the development
of its proposed, multi-state Green Power Express Project.
Green Power Express LP is a limited partnership formed by ITC Holdings Corp.
(ITC) to develop and build the Green Power Express Project. The Green Power
Express Project is a network of transmission lines that will transport
12,000 megawatts of power from wind-abundant areas of the Upper Midwest to
Midwestern and Eastern states that demand clean, renewable energy. The
Project addresses the severe lack of electric transmission infrastructure
needed to integrate wind energy onto the nation's electricity grid.
"This is an exciting step in the process of connecting clean, renewable
energy sources from wind-rich areas to urban locations where it is needed,"
said Joseph L. Welch, chairman, president and CEO of ITC. "We are pleased
that FERC recognizes the importance of investing in the nation's high
voltage transmission grid as a mechanism to support renewables and we look
forward to working with the Midwest Independent Transmission System
Operator, Inc. (Midwest ISO) and all federal and state stakeholders on the
development of this project."
ITC, through Green Power Express LP, will now seek Midwest ISO review of the
seven-state project and pursue a cost allocation mechanism that factors its
far reaching benefits into account.
FERC found that the Green Power Express Project is "not routine by any
measure" and is eligible for transmission investment incentives because it
will provide significant benefits like greatly improved transfer capability
and access to wind generation. The order grants approval of an incentive
return on common equity of 12.38 percent; deferred recovery for start-up,
development and pre- construction costs through the creation of regulatory
assets; inclusion of 100 percent of construction work in progress in rate
base; abandoned plant treatment; and use of a hypothetical capital structure
comprised of 60 percent equity and 40 percent debt until any portion of the
Project is placed in service.
The FERC order conditionally accepted Green Power Express LP's proposed
formula rate tariff sheets, subject to refund, and set them for hearing and
settlement judge procedures. The approved transmission investment incentives
and return on equity were specifically excluded from any hearing process.
The Green Power Express Project will traverse portions of North Dakota,
South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana and include
approximately 3,000 miles of extra high-voltage (765 kilovolt) transmission.
The entire project is currently estimated to cost approximately $10-12
billion and will reduce congestion, improve transmission reliability, and
strengthen the nation's aging electricity infrastructure.
As ITC continues to work with wind developers and other local utilities in
the region to identify their needs and project impacts, there may be
additional lines and stations identified that would effectively accumulate
the available wind generation within the region.
The Green Power Express is one facet of ITC's broader efforts to develop and
build a high voltage transmission grid that supports the nation's renewable
energy goals, addresses growing energy demands, and eliminates costly
inefficiencies. ITC is urging Congress to update the rules that govern
transmission development to allow such investments to move forward in time
to meet growing demand.
"The Green Power Express Project will be a crucial tool for connecting
abundant wind power with the population centers that demand it," said Welch.
"We are confident that the FERC will continue to work with ITC to make this
historic and ambitious project a reality."
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.itc-holdings.com. (itc-ITC)
Safe Harbor Statement and Legal Disclaimer
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Because our forward-looking statements are based on estimates and
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SOURCE ITC Holdings Corp.
Originally published by ITC Holdings Corp..
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