ITC Holdings Corp. (NYSE: ITC) today announced it has received approval from the Midwest Independent Transmission System Operator, Inc. (MISO) to construct portions of four Multi-Value Projects (MVPs). The aggregate portfolio of MVP projects, approved by MISO on December 8, includes approximately $5.1 billion of investments in new regional transmission infrastructure and is the result of an extensive stakeholder process.
These projects are expected to provide broad regional benefits commensurate with costs and also support approved state and federal energy policy mandates in the MISO region. According to MISO, the MVP portfolio will deliver benefits in excess of 1.8 to 3.0 times its costs, which, for the average residential customer, translates to $23 in benefits from lowered delivered energy costs for about $11 a year in investment.
ITC will build, own and operate portions of four of the MVP projects in the Midwest region, including MVP Project #3, located in south central Minnesota and north central Iowa; MVP Project #4, located in north central Iowa; MVP Project #5, located in southwest Wisconsin and eastern Iowa; and MVP Project #7, located in southern Iowa and northeast Missouri.
These projects are in addition to the Michigan Thumb Loop Expansion project, which was the first MVP approved by MISO in August 2010. ITC has received siting approval for this project and currently is undertaking pre-construction activities.
“We commend MISO for approving the MVP portfolio, which is a critical step in advancing needed transmission infrastructure in the region,” said Joseph L. Welch, chairman, president and CEO of ITC. “The approval of these projects serves to demonstrate ITC’s success in facilitating regional transmission investment that provides significant customer benefits and underscores our continued ability to execute on our development portfolio.”
With MISO’s approval of the MVP portfolio, ITC will now begin routing work and can apply for siting at various state public service commissions for the four MVP projects. Based on MISO’s preliminary cost estimates for these projects, ITC anticipates investment requirements in excess of $600 million for its portions of the four MVP projects approved by MISO on December 8.