ITCTransmission, a subsidiary of ITC Holdings, has signed a memorandum of understanding with American Electric Power (AEP) to jointly commence a study of building a 765-kV transmission network in Michigan's Lower Peninsula, potentially in both ITCTransmission and METC's (also an ITC company) service territory, that would link to AEP's existing 765-kV transmission infrastructure.

The study will consider the merits and benefits of the construction of such transmission infrastructure improvements in order to address the electric reliability deficiencies in Michigan and the region. Such an extension would create and expand an energy superhighway system in Michigan that is comparable to the nation's construction of the interstate highway system.

The scope of the understanding does not include provisions to build or operate transmission. The study is expected to be completed by the end of December 2006.