ITCTransmission and Michigan Electric Transmission Co., LLC  have announced that the Federal Energy Regulatory Commission has approved their joint application made with the Midwest Independent Transmission System Operator to repay generators interconnecting with their systems for the full cost of network upgrades necessary to enable those interconnections. FERC approved the application, effective July 11, 2007.

"We sincerely appreciate FERC's continued allegiance to open, competitive markets and the hard work of the Commissioners and staff in approving our application so promptly," said Joseph L. Welch, president and CEO of ITC. "Electric transmission is the backbone of the energy delivery system and plays a critical role in enabling us to make the greater use of renewable and other clean electricity sources. FERC's order will remove a significant barrier to entry for new generation, including wind and other renewable resources, and will promote a more competitive energy market to the benefit of customers and generators."

Previously, generators interconnecting to the ITCTransmission and METC systems were required to bear half the costs of most network upgrades along with other costs of interconnection. Under the newly approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITCTransmission and METC systems, provided the generators meet certain eligibility requirements. In FERC's words, "a network upgrade is considered part of the interconnected transmission system, benefiting all customers", and as such the costs of these upgrades will be paid by the customers of ITCTransmission and METC.

"Thank you to Governor Granholm and others who supported our proposal," said Welch. "This policy will serve as a model as we expand our footprint into other regions to promote fair generator interconnection standards by removing generator cost impediments and help realize the benefits of renewables."