ITC Holdings Corp., an independent electricity transmission company based in Novi, today announced it will reduce its customer rates as a result of a lower federal corporate income tax rate signed by President Donald Trump late last year.
ITC’s wholesale electricity customers throughout the Midcontinent Independent System Operator (MISO) region will see an 8 percent to 10 percent reduction in transmission rates, retroactive to Jan. 1, and beginning with bills for services provided in March. A similar reduction will be made to ITC’s formula rate in the Southwest Power Pool region.
“Our ability to quickly and proactively flow the benefits of tax reform to our customers reflects the value of ITC’s formula rate model and our cultural focus on going above and beyond what’s required of us to serve our customers,” says Jon Jipping, COO of ITC. “We will continue to collaborate with our customers to deliver maximum value to end-use retail electricity customers through improved system reliability and resilience, and connecting new generation sources to our systems to help lower the overall cost of delivered energy.”
ITC and other transmission owners in the MISO region filed for and received a waiver from the Federal Energy Regulatory Commission to allow the transmission owners to pass the benefits of the corporate tax reduction to their customers earlier than required under the MISO tariff process. The rates would not have been implemented until 2019 otherwise.
ITC owns and operates high-voltage transmission infrastructure in Michigan, Iowa, Minnesota, Illinois, Missouri, Kansas, and Oklahoma. It is slated to open operation in Wisconsin in the coming months. The systems serve a combined peak load of more than 26,000 megawatts.