NOVI, Mich., July 7, 2009 – In the first of several anticipated strategic alliances, ITC Holdings Corp. (NYSE: ITC) today announced it has entered into an agreement with MDU Resources Group, Inc. (MDU) to participate in ITC’s Green Power Express transmission project. The agreement represents another important milestone in ITC’s efforts to bring the Green Power Express project to fruition.
The Green Power Express transmission network project will provide grid access for many of the highest efficiency wind-farms in the upper Midwest and traverse portions of North Dakota, South Dakota, Minnesota, Iowa, Wisconsin, Illinois and Indiana. It will ultimately include approximately 3,000 miles of extra-high-voltage 765 kilovolt (kV) transmission and will connect with existing 765 kV lines in Illinois and Indiana. The project will facilitate the flow of up to 12,000 megawatts (MW) of renewable power to the Midwest and mid-Atlantic regions of the United States. It is currently estimated to cost approximately $10 to 12 billion.
Under the terms of the agreement, MDU, headquartered in Bismarck, N.D., has expressed its interest in investing in Green Power Express, LP, the entity that was formed by ITC to develop the Green Power Express project. MDU will collaborate with ITC on development efforts and securing the approvals needed to move the project forward. Green Power Express, LP, will operate as an independent transmission company.
“We are pleased with both this agreement and the opportunity it establishes to work with MDU Resources Group on the design and development of the Green Power Express project,” said Edward M. Rahill, president, ITC Grid Development, LLC. “MDU’s insight into the wind power infrastructure needs in North and South Dakota will be invaluable as we continue to advance the development of the Green Power Express.
“We expect that an eventual partnership with MDU will be the first of many and is a significant step in ITC’s efforts to site and build regional transmission in order to move renewable generation from remote regions of the country to urban areas where it is needed,” he added.
According to a study by CRA International, efficient movement of up to 12,000 MW of transfer capacity for wind power and the connectivity of over 20,000 MW through the Green Power Express project would result in a reduction of up to 34 million metric tons in carbon emissions, which is equivalent to the annual emissions of about seven to nine 600 MW coal plants, or nine to 11 million automobiles.
The Green Power Express project also will address the recognized need for additional transmission infrastructure and is part of ITC’s broader efforts to modernize the overburdened, aging electricity grid.
MDU Resources Group, Inc. is comprised of both regulated and non-regulated businesses that, collectively, operate across much of the U.S. These companies sell a broad spectrum of high-quality products and services primarily related to supporting energy and transportation infrastructure.
“We are excited to be part of this groundbreaking transmission project,” said Terry D. Hildestad, president and CEO of MDU Resources. “The Green Power Express project can play a major role in helping the country fulfill its goals of making wind power a significant part of our electricity supply, and reducing carbon emissions.”
ITC will continue to pursue Green Power Express partnership discussions and finalize definitive partnership agreements with MDU and other strategic entities, including local utilities. Other project supporters include NorthWestern Energy (NYSE: NWE), NextEra Renewable Energy (formerly FPLE), Iberdrola Renewables, Generation Energy Inc., Montgomery Power Partners, Denali Energy, National Wind, Crownbutte Wind Power, Inc., Wind Capital Group, Fox Ridge Energy & Development, LLC, Horizon Wind Energy, Prelude, LLC, Citizens Energy and RES, Renewable Energy Systems Americas.
Additional information about the Green Power Express project can be obtained at: http://www.thegreenpowerexpress.com.
About ITC Holdings Corp.
ITC Holdings Corp. (NYSE: ITC) invests in the electricity transmission grid to improve electric reliability, improve access to markets, and lower the overall cost of delivered energy. ITC is the largest independent electricity transmission company in the country. Through its subsidiaries, ITCTransmission, Michigan Electric Transmission Company (METC) and ITC Midwest, ITC operates contiguous, regulated, high-voltage transmission systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois and Missouri, serving a combined peak load in excess of 25,000 megawatts. ITC is also focused on new areas where significant transmission system improvements are needed through subsidiaries ITC Grid Development, ITC Great Plains and ITC Panhandle Transmission. For more information, please visit: http://www.itctransco.com (itc-ITC)
Safe Harbor Statement and Legal Disclaimer
This press release contains certain statements that describe our management’s beliefs concerning future business conditions and prospects, growth opportunities and the outlook for our business and the electricity transmission industry based upon information currently available. Such statements are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Wherever possible, we have identified these forward-looking statements by words such as “anticipates,” “believes,” “intends,” “estimates,” “expects,” “projects” and similar phrases. These forward-looking statements are based upon assumptions our management believes are reasonable. Such forward-looking statements are subject to risks and uncertainties which could cause our actual results, performance and achievements to differ materially from those expressed in, or implied by, these statements, including, among other things, the risks and uncertainties disclosed in our annual report on Form 10-K and our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission from time to time.
Because our forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different and any or all of our forward-looking statements may turn out to be wrong. They speak only as of the date made and can be affected by assumptions we might make or by known or unknown risks and uncertainties. Many factors mentioned in this press release and in our annual and quarterly reports will be important in determining future results. Consequently, we cannot assure you that our expectations or forecasts expressed in such forward-looking statements will be achieved. Actual future results may vary materially. Except as required by law, we undertake no obligation to publicly update any of our forward-looking or other statements, whether as a result of new information, future events, or otherwise. (itc-ITC)
Investor/Analyst Contact:
Pat Wenzel, 248-946-3570
pwenzel@itc-holdings.com
Media Contact:
Cheryl Eberwien, 248-767-1068
ceberwein@itctransco.com
About MDU Resources Group, Inc.
MDU Resources Group, Inc., a Fortune 500 company and a member of the S&P MidCap 400 index, provides value-added natural resource products and related services that are essential to energy and transportation infrastructure, operating in three core lines of business: energy, utility resources and construction materials. MDU Resources includes natural gas and oil production, natural gas pipelines and energy services, electric and natural gas utilities, construction services, and construction materials and contracting. For more information about MDU Resources, see the company’s Web site at www.mdu.com.
Investor Contact:
Phyllis A. Rittenbach, 701- 530-1057
Phyllis.Rittenbach@MDUResources.com
Media Contact:
Rick Matteson, 701- 530-1700
Richard.Matteson@MDUResources.com
