ITC Holdings and its ITC Midwest subsidiary have received approval from the Federal Energy Regulatory Commission to purchase 6,800 miles of transmission lines and stations in Iowa, Illinois, Missouri and Minnesota from Interstate Power and Light Company, a subsidiary of Alliant Energy.
The Federal Energy Regulatory Commission (FERC) found that the sale of Interstate Power and Light Company’s (IPL) 34.5kV and above power lines to ITC Midwest is likely to result in significant benefits due to further ownership of transmission assets by an independent transmission company.
As part of the acquisition approval, the FERC included in its order the approved 12.38% return on equity and 60% equity, 40% debt target capital structure. Through the FERC order, ITC Midwest will be able to recover its expenses and investments in transmission property, plant and equipment on a current rather than on a historical basis.
The order issued by the FERC provides ITC with an additional regulatory approval it needs in order to own, operate and maintain IPL’s transmission assets. ITC is still awaiting final determination in its request for regulatory approvals from the state of Minnesota.
Joseph Welch, president and CEO of ITC, said: We are pleased that FERC approved ITC Midwest’s acquisition of IPL’s transmission assets. The order reaffirms the importance of independent transmission and is a vote of confidence in ITC and our commitment to improve the reliability and efficiency of the power grid.