ITCTransmission announced that the Federal Energy Regulatory Commission (FERC) approved a joint filing made by the Midwest Independent Transmission System Operator, Inc. and ITCTransmission to allow ITCTransmission to recover its expenses and investments in transmission property, plant and equipment on a current rather than on a lagging basis. As a result, ITCTransmission will now be allowed to collect revenues based on current investments.
The FERC order authorizes ITCTransmission to use a forward-looking test period in the fall of each year for rates commencing January 1 of the next year through December 31 of that same year. FERC also approved a true-up mechanism to correct for any differences between the forecast rate and what the actual rate should have been based on actual costs. "This adjustment to the implementation of our Attachment O formula rate enhances our ability to continue to rebuild and strengthen the transmission grid in Southeast Michigan," said Joseph L. Welch, president and CEO of ITCTransmission.