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.
The filing has been assigned FERC Docket No. ER06-1006 and can be accessed at FERC's website at http://www.ferc.gov/ and at ITCTransmission's website at http://www.itctransco.com/news_filings.php.
