ITC Holdings Corporation’s newly formed subsidiary, ITC Midwest LLC, has signed a definitive agreement to acquire the transmission assets of Interstate Power and Light Company ("IP&L"), an Alliant Energy Corporation subsidiary. ITC Midwest will acquire all of IP&L's transmission assets at 34.5 kV and higher for approximately $750 million in cash, subject to regulatory approvals. The transaction is expected to be concluded in late fourth quarter 2007.
"The acquisition of IP&L's transmission assets supports ITC Holdings' continued mission to rebuild and invest in the electric transmission infrastructure for the benefit of customers through improved reliability and enhanced access to the competitive energy marketplace," said Joseph L. Welch, president and CEO of ITC Holdings. "End-use consumers will be the true beneficiaries of this acquisition as we remain steadfast in our commitment to enhance electric reliability and further enable the development and growth of renewable energy resources."
IP&L's transmission assets currently consist of approximately 6,800 miles of transmission lines at voltages of 34.5 kV and above and approximately 170 substations, predominantly located in Iowa with some assets in Minnesota and Illinois. ITC Holdings expects to finance the transaction through a combination of cash on hand and equity and debt financings.
This acquisition will allow ITC Holdings to lend its experience and resources toward rebuilding and strengthening the transmission grid in Iowa, Minnesota and Illinois, create a more competitive energy market for the benefit of customers and help support the growing region's increasing electricity demand.
In conjunction with the sale of IP&L's transmission assets, Alliant Energy also announced an overall plan entitled "Energy for a New Generation" that includes the construction of a new baseload clean-coal generation plant and development of renewable wind energy in Iowa.
"Combined with the sale of IP&L's transmission assets, the Energy for a New Generation plan will help provide customers with reliable, affordable and environmentally-friendly energy into the future," said Bill Harvey, chairman, president and CEO of Alliant Energy.
Since becoming an independent electric transmission company, ITC Holdings has grown from 38 employees to over 230 employees and 400 highly-skilled contract field staff to support its effort to improve electric transmission infrastructure and, in turn, customer reliability. ITC Holdings anticipates the creation of approximately 100 new jobs in Iowa and Michigan to support its continued growth, with up to an additional 200 contract field jobs in Iowa, Minnesota and Illinois in conjunction with anticipated capital and maintenance work on the system. Through its operating subsidiaries, ITC Holdings has invested more than $460 million in transmission property, plant and equipment and maintenance targeted at improving electric reliability, reducing system congestion and lowering the overall cost of delivered energy in Michigan.