Partners in Business Quarterly Meeting Fox Hills Golf and Banquet Center August 31, 2006 Plymouth, MI

Partners in BusinessPartners in BusinessQuarterly MeetingQuarterly Meeting

Fox Hills Golf and Banquet CenterFox Hills Golf and Banquet CenterAugust 31, 2006August 31, 2006Plymouth, MIPlymouth, MI

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AgendaAgenda

Welcome Welcome

Anne JinksAnne Jinks

Capital Project UpdateCapital Project Update

Brian SlocumBrian Slocum

Regulatory & Legislative UpdateRegulatory & Legislative Update Michael TaylorMichael Taylor

Marketing, Operations Update & ClosingMarketing, Operations Update & Closing Anne JinksAnne Jinks

LunchLunch

Networking EventNetworking Event

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Capital Project UpdateCapital Project Update— Brian Slocum, Senior Engineer, System Brian Slocum, Senior Engineer, System

PlanningPlanning

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Capital Projects Guiding PrinciplesCapital Projects Guiding Principles ITCITCTransmissionTransmission follows a stringent planning process to ensure that the follows a stringent planning process to ensure that the

projects that are implemented provide the maximum value to our projects that are implemented provide the maximum value to our customers.customers.

The System Planning team develops contingency-based scenarios to identify where The System Planning team develops contingency-based scenarios to identify where our system faces reliability risks.our system faces reliability risks.

Additionally, ITCAdditionally, ITCTransmissionTransmission uses PROMOD software that performs modeling that uses PROMOD software that performs modeling that not only provides visibility to the reliability benefits of the projects but also assists in not only provides visibility to the reliability benefits of the projects but also assists in identifying projects that provide economic benefits.identifying projects that provide economic benefits.

All system capacity projects proposed are based on at least one projected planning All system capacity projects proposed are based on at least one projected planning criteria violation. Postponing or eliminating these projects puts ITCcriteria violation. Postponing or eliminating these projects puts ITCTransmissionTransmission in in violation of its Planning Criteria.violation of its Planning Criteria.

ITCITCTransmissionTransmission’s 2007 Capital Project Budget will provide the following ’s 2007 Capital Project Budget will provide the following benefits:benefits:

Reliability in the form of increased system capacity and increased transfer capability;Reliability in the form of increased system capacity and increased transfer capability;

Reliability through infrastructure improvements; orReliability through infrastructure improvements; or

Economic benefits to ITCEconomic benefits to ITCTransmissionTransmission customers by reducing congestion and/or customers by reducing congestion and/or losses.losses.

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2006 Capital Project Update2006 Capital Project Update Majestic – MadridMajestic – Madrid

Work at Madrid has started this year. Most of the work at the Majestic end will be Work at Madrid has started this year. Most of the work at the Majestic end will be completed in 2007.completed in 2007.

Erin – Stephens 3Erin – Stephens 3

The manholes and ductwork is expected to be completed in 2006 with the cable The manholes and ductwork is expected to be completed in 2006 with the cable installation moving forward in 2007.installation moving forward in 2007.

Station work at the terminal ends of the line will also be completed in 2007.Station work at the terminal ends of the line will also be completed in 2007.

St. Antoine GIS ReplacementSt. Antoine GIS Replacement

Project to replace aging equipment at the end of its useful life was completed on May Project to replace aging equipment at the end of its useful life was completed on May 26, 2006.26, 2006.

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2006 Capital Project Update2006 Capital Project Update Lenox StationLenox Station

Before the summer, 3 of the 5 - 120kV lines were placed in commission. This helped Before the summer, 3 of the 5 - 120kV lines were placed in commission. This helped to improve voltages in Macomb County during the summer peak.to improve voltages in Macomb County during the summer peak.

The other 2 - 120kV lines will be placed in commission this fall. The 345kV The other 2 - 120kV lines will be placed in commission this fall. The 345kV switchyard and the 345-120kV transformer will be placed in service by the end of this switchyard and the 345-120kV transformer will be placed in service by the end of this year.year.

Wyatt StationWyatt Station

Construction is nearing completion in the field. Between now and the end of the year Construction is nearing completion in the field. Between now and the end of the year various shutdowns will take place to cut the 4 lines into the station and make various shutdowns will take place to cut the 4 lines into the station and make connections to the DVAR.connections to the DVAR.

Quaker – Wixom 230kVQuaker – Wixom 230kV

Currently waiting on the arrival of the 230-120kV transformer at Quaker. Once Currently waiting on the arrival of the 230-120kV transformer at Quaker. Once transformer arrives the new line will be placed in service and the project will be transformer arrives the new line will be placed in service and the project will be completed.completed.

Pontiac ReactorPontiac Reactor

Project was completed and placed in service on May 17, 2006.Project was completed and placed in service on May 17, 2006.

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Capital Projects For 2007Capital Projects For 2007

System Capacity ImprovementsSystem Capacity Improvements

1. Bismarck-Troy 345kV Cable 1. Bismarck-Troy 345kV Cable

2. Oakland Township Station & 2. Oakland Township Station & LinesLines

3. Pontiac-Joslyn-Walton 120kV 3. Pontiac-Joslyn-Walton 120kV Circuit UpgradeCircuit Upgrade

4. Golf Station4. Golf Station

5. Coventry 230kV Station 5. Coventry 230kV Station

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5

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Capital Projects For 2007Capital Projects For 2007

System Capacity ImprovementsSystem Capacity Improvements (cont.) (cont.)

6. Majestic 345-120kV & Majestic-6. Majestic 345-120kV & Majestic-Madrid 120kVMadrid 120kV

7. Placid Station Expansion 7. Placid Station Expansion

8. Erin – Stephens 38. Erin – Stephens 3

9. Yost 120kV Line Breaker9. Yost 120kV Line Breaker

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896

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System Capacity ImprovementsSystem Capacity Improvements Bismarck-Troy 345kV Cable: First Phase of the Central System Project to Bismarck-Troy 345kV Cable: First Phase of the Central System Project to

improve reliability and add capacity by reducing loading on circuits in improve reliability and add capacity by reducing loading on circuits in Oakland County.Oakland County.

Build a new 345kV circuit to support the central part of ITCBuild a new 345kV circuit to support the central part of ITCTransmissionTransmission’s 120kV ’s 120kV system.system.

Design started with construction to start upon MPSC siting approval.Design started with construction to start upon MPSC siting approval.

Projected completion toward end of 2008.Projected completion toward end of 2008.

Benefits: Reduces system losses by 16 MW at peak. Based on PROMOD runs, the Benefits: Reduces system losses by 16 MW at peak. Based on PROMOD runs, the total Central System Project will save customers between $13-$24 million annually.total Central System Project will save customers between $13-$24 million annually.

Oakland Township Station & Lines: Second Phase of the Central System Oakland Township Station & Lines: Second Phase of the Central System Project. Increase transmission capacity and reliability by reducing Project. Increase transmission capacity and reliability by reducing overloads – Oakland, Pontiac, Tienken and Sunbird Stations in Oakland overloads – Oakland, Pontiac, Tienken and Sunbird Stations in Oakland County.County. Build a new 345/120 kV switching station, add 3 new 120kV lines and add/upgrade Build a new 345/120 kV switching station, add 3 new 120kV lines and add/upgrade

equipment at 3 other stations.equipment at 3 other stations. Design to start in 2006, with construction to start in 2007.Design to start in 2006, with construction to start in 2007.

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Project completion toward end of 2008.Project completion toward end of 2008.

Benefits: Reduces loading on Pontiac transformers and 120kV lines; reduces Benefits: Reduces loading on Pontiac transformers and 120kV lines; reduces system losses at peak by 6MW. Benefit: Based on PROMOD runs, the total system losses at peak by 6MW. Benefit: Based on PROMOD runs, the total Central System Project will save customers between $13-$24 million annually.Central System Project will save customers between $13-$24 million annually.

Pontiac-Joslyn-Walton 120kV Circuit Upgrade, Third Phase of the Pontiac-Joslyn-Walton 120kV Circuit Upgrade, Third Phase of the Central System Project: Increase transmission capacity and reliability Central System Project: Increase transmission capacity and reliability by increasing line ratings and reducing overloads in Oakland County.by increasing line ratings and reducing overloads in Oakland County. Replace terminal equipment at Pontiac and Walton stations.Replace terminal equipment at Pontiac and Walton stations.

Projected completion date – June 2007.Projected completion date – June 2007.

Benefits: Based on PROMOD runs, the total Central System Project will save Benefits: Based on PROMOD runs, the total Central System Project will save customers between $13-$24 million annually.customers between $13-$24 million annually.

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Golf 120kV Station: Increase transmission capacity and reliability, and Golf 120kV Station: Increase transmission capacity and reliability, and reduce transmission system losses in Macomb Countyreduce transmission system losses in Macomb County

Completion of project which began in 2005 with line work.Completion of project which began in 2005 with line work.

2007 work includes creation of 120kV switching station at Golf station.2007 work includes creation of 120kV switching station at Golf station.


Benefits: 1.4 MW loss savings, frees up 13 MVAR of dynamic reserve.Benefits: 1.4 MW loss savings, frees up 13 MVAR of dynamic reserve.

Coventry 230kV Station: Increase transfer capability into Coventry 230kV Station: Increase transfer capability into ITCITCTransmissionTransmission system by reducing constraints. system by reducing constraints.

Creates a new 230kV Station at Coventry and upgrades 2 – 120kV circuits to 230 Creates a new 230kV Station at Coventry and upgrades 2 – 120kV circuits to 230 kV operation and splits an existing 120kV circuit into 2 circuits.kV operation and splits an existing 120kV circuit into 2 circuits.


Benefits: Increases import capability into ITCBenefits: Increases import capability into ITCTransmission Transmission system by system by approximately 750MW. Directly improves the loss of load expectation toward the approximately 750MW. Directly improves the loss of load expectation toward the standard 1 day in 10 years.standard 1 day in 10 years.

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Majestic 345-120kV & Majestic-Madrid 120kV: Improve voltages in Majestic 345-120kV & Majestic-Madrid 120kV: Improve voltages in Washtenaw and Livingston Counties to allow for increased transfer Washtenaw and Livingston Counties to allow for increased transfer capability.capability.

Install a new 345/120kV transformer at Majestic Station, create a new 120kV Install a new 345/120kV transformer at Majestic Station, create a new 120kV circuit between the Majestic and Madrid stations and a capacitor at Madrid.circuit between the Majestic and Madrid stations and a capacitor at Madrid.

Construction completion – June 2007.Construction completion – June 2007.

Benefits: 15 MVAR loss savings; increases METC to ITCBenefits: 15 MVAR loss savings; increases METC to ITCTransmissionTransmission transfer transfer capability by improving voltages on both systems in the Livingston County area.capability by improving voltages on both systems in the Livingston County area.

Placid Station Expansion: Increase capacity and improve reliability by Placid Station Expansion: Increase capacity and improve reliability by adding additional transformation at Placid Station in Oakland Countyadding additional transformation at Placid Station in Oakland County Install a 2Install a 2ndnd 345/120kV transformer at Placid Station as an in-service spare. 345/120kV transformer at Placid Station as an in-service spare.

Design started in 2005 with completion by June 2007. Design started in 2005 with completion by June 2007.

Benefits: Approximately 8 MVAR loss savings; raises post contingency voltages in Benefits: Approximately 8 MVAR loss savings; raises post contingency voltages in the area.the area.

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Erin-Stephens 3 120kV: Increase capacity and improve reliability in Erin-Stephens 3 120kV: Increase capacity and improve reliability in Macomb CountyMacomb County Install a 120kV cable from Erin to Stephens stations, creating a 3Install a 120kV cable from Erin to Stephens stations, creating a 3 rdrd circuit to Erin. circuit to Erin.

Station improvements at Stephens to provide separation between the feeds to Station improvements at Stephens to provide separation between the feeds to Erin and the addition of a new section breaker at Macomb will further improve Erin and the addition of a new section breaker at Macomb will further improve reliability to the area.reliability to the area.

Construction on conduit and manholes began in 2006. Projected completion – Construction on conduit and manholes began in 2006. Projected completion – December, 2007.December, 2007.

Benefits: Secures approximately 400 MW of load that was at risk for a single Benefits: Secures approximately 400 MW of load that was at risk for a single common element outage on the ITCcommon element outage on the ITCTransmissionTransmission system. system.

Yost 120kV line breaker: Improve reliability in Livonia area by reducing Yost 120kV line breaker: Improve reliability in Livonia area by reducing exposure to outagesexposure to outages Install a 120kV line breaker at Yost on the Polaris – Yost line.Install a 120kV line breaker at Yost on the Polaris – Yost line.

Completion by December 2007.Completion by December 2007.

Benefits: Improves reliability to industrial end-use customers by reducing the Benefits: Improves reliability to industrial end-use customers by reducing the exposure to outages caused by 120kV bus, capacitor and distribution transformer exposure to outages caused by 120kV bus, capacitor and distribution transformer problems.problems.

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Overloaded non-terminal Station Equipment replacementOverloaded non-terminal Station Equipment replacement

Replace non-terminal equipment found to be overloaded in system normal Replace non-terminal equipment found to be overloaded in system normal configurations and in open breaker configurations across the footprint.configurations and in open breaker configurations across the footprint.

Ongoing project to address found issues to allow for full operability of station Ongoing project to address found issues to allow for full operability of station equipment.equipment.

Arrowhead Station Bypass SwitchArrowhead Station Bypass Switch

Install a bypass switch at Arrowhead Station to allow for shutdowns of the Install a bypass switch at Arrowhead Station to allow for shutdowns of the Arrowhead equipment without breaking the series circuit from Tuscola to Harbor Arrowhead equipment without breaking the series circuit from Tuscola to Harbor Beach.Beach.

Eliminates dependence on Harbor Beach generation for shutdowns at Arrowhead Eliminates dependence on Harbor Beach generation for shutdowns at Arrowhead Station.Station.

Monroe Transformer 303 Secondary Breaker InstallationMonroe Transformer 303 Secondary Breaker Installation

Install a 120kV breaker on the secondary of Monroe 345/120 kV Transformer 303.Install a 120kV breaker on the secondary of Monroe 345/120 kV Transformer 303.

Improves operating flexibility by allowing for shutdowns of the transformer without Improves operating flexibility by allowing for shutdowns of the transformer without requiring an industrial customer shutdown simultaneously.requiring an industrial customer shutdown simultaneously.

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Infrastructure ImprovementsInfrastructure Improvements

Gas Insulated Switchgear (GIS) ReplacementsGas Insulated Switchgear (GIS) Replacements

Caniff and Midtown StationsCaniff and Midtown Stations

Replaces aging and leaking equipment reducing maintenance costs and Replaces aging and leaking equipment reducing maintenance costs and improving reliabilityimproving reliability

Completed St. Antoine earlier this yearCompleted St. Antoine earlier this year

Breaker ReplacementsBreaker Replacements

Improving overall reliability of the ITCImproving overall reliability of the ITCTransmissionTransmission system by replacing aging system by replacing aging circuit breakers which will reduce maintenance and testing costs and maintain circuit breakers which will reduce maintenance and testing costs and maintain safety.safety.

A total 24 replacements are planned in 2007 at various 345kV, 230kV and 120kV A total 24 replacements are planned in 2007 at various 345kV, 230kV and 120kV stations.stations.

Gas Cable Termination ReplacementsGas Cable Termination Replacements

Replace 120kV cable terminations which are at end of life, are un-maintainable Replace 120kV cable terminations which are at end of life, are un-maintainable and have no readily available spare parts.and have no readily available spare parts.

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Infrastructure ImprovementsInfrastructure Improvements

New 120kV Synchronizing SitesNew 120kV Synchronizing Sites

Add synchronizing equipment (controls and potential transformers) to 120kV sites Add synchronizing equipment (controls and potential transformers) to 120kV sites in order to facilitate system restoration.in order to facilitate system restoration.

Relay Betterment – Improving reliability by replacing end of life relays Relay Betterment – Improving reliability by replacing end of life relays with state of the art microprocessor based relays.with state of the art microprocessor based relays.

Ongoing program to replace aged equipment.Ongoing program to replace aged equipment.

Wood Pole Replacement Program – Replace aging infrastructureWood Pole Replacement Program – Replace aging infrastructure

Ongoing program to replace aged and condemned wooden poles across the Ongoing program to replace aged and condemned wooden poles across the ITCITCTransmissionTransmission system. system.

Power Plant Control Relocation – Improving Reliability and SecurityPower Plant Control Relocation – Improving Reliability and Security

Replace controls and other equipment at ITCReplace controls and other equipment at ITCTransmissionTransmission stations that are stations that are currently located in DTE Power Plants. Improves power plant and switchyard currently located in DTE Power Plants. Improves power plant and switchyard security and replaces aged equipment.security and replaces aged equipment.

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Customer Connection RequestsCustomer Connection Requests

Customer Connections – ITCCustomer Connections – ITCTransmissionTransmission strives to supply Best-in- strives to supply Best-in-Class service to all transmission customersClass service to all transmission customers

New Distribution InterconnectionsNew Distribution Interconnections

— We currently have 13 distribution interconnection requests that are in various We currently have 13 distribution interconnection requests that are in various stages of the project cycle.stages of the project cycle.

New Generation InterconnectionsNew Generation Interconnections

— We currently have 7 generation interconnection requests in the MISO Queue We currently have 7 generation interconnection requests in the MISO Queue which could drive the need for further infrastructure improvement.which could drive the need for further infrastructure improvement.

— No Interconnection Agreements have been executed to date on any of these No Interconnection Agreements have been executed to date on any of these requests.requests.

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MISO Transmission Expansion Plan MISO Transmission Expansion Plan

ITCITCTransmissionTransmission participates in the MISO Transmission Expansion Plan participates in the MISO Transmission Expansion Plan (MTEP) process and submits its system projects to MISO for their review (MTEP) process and submits its system projects to MISO for their review and approval.and approval.

The projects in the 2007 Capital Budget are in various stages in the MTEP The projects in the 2007 Capital Budget are in various stages in the MTEP Process. Process.

Some have been submitted and approved as parts of previous MTEP. Others are Some have been submitted and approved as parts of previous MTEP. Others are being submitted for the first time as part of the current MTEP study.being submitted for the first time as part of the current MTEP study.

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Regulatory & Legislative UpdateRegulatory & Legislative Update— Michael Taylor, Regulatory AnalystMichael Taylor, Regulatory Analyst

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Regulatory Update Regulatory Update The Federal Energy Regulatory Commission (FERC) approved The Federal Energy Regulatory Commission (FERC) approved

ITCITCTransmissionTransmission’s request to implement Attachment O on a ’s request to implement Attachment O on a prospective basis with a true-up mechanism (ER06-1006).prospective basis with a true-up mechanism (ER06-1006).

Allows ITCAllows ITCTransmission Transmission to recover its expenses and investments in to recover its expenses and investments in property, plant, and equipment on a current rather than on a lagging basis.property, plant, and equipment on a current rather than on a lagging basis.

ITCITCTransmission Transmission will be having a customer meeting on September 14 to will be having a customer meeting on September 14 to discuss the rate that will go into effect on January 1, 2007.discuss the rate that will go into effect on January 1, 2007.

Compliance filing made on August 14, 2006.Compliance filing made on August 14, 2006.

FERC issued a final rule regarding incentive pricing for FERC issued a final rule regarding incentive pricing for transmission expansion projects (Order 679).transmission expansion projects (Order 679).

The incentives identified in the order generally track the ones proposed in The incentives identified in the order generally track the ones proposed in the NOPR.the NOPR.

Incentive treatment is to be granted on a case-by-case basis. Incentive treatment is to be granted on a case-by-case basis.

Further reporting requirements were adopted for projects that qualify for Further reporting requirements were adopted for projects that qualify for incentive treatment under the Rule.incentive treatment under the Rule.

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Regulatory Update Regulatory Update FERC accepted the North American Electric Reliability Council’s FERC accepted the North American Electric Reliability Council’s

(NERC) application to become the Electric Reliability Organization (NERC) application to become the Electric Reliability Organization (ERO) for the US (RR06-1). (ERO) for the US (RR06-1).

This will make the NERC’s reliability standards legally enforceable, as This will make the NERC’s reliability standards legally enforceable, as provided for under the Energy Policy Act of 2005.provided for under the Energy Policy Act of 2005.

The standards are under consideration in a separate docket (RM06-16).The standards are under consideration in a separate docket (RM06-16).

The order largely accepted, subject to a compliance filing, the governance The order largely accepted, subject to a compliance filing, the governance structure, funding methodology and standards development process structure, funding methodology and standards development process proposed by NERC.proposed by NERC.

FERC finalized guidelines for transmission providers to follow in FERC finalized guidelines for transmission providers to follow in developing long-term firm transmission rights in organized developing long-term firm transmission rights in organized electricity markets (RM06-8).electricity markets (RM06-8).

Deference was given to Regional Transmission Organizations (RTOS) to Deference was given to Regional Transmission Organizations (RTOS) to propose mechanisms that reflect the nuances of their markets.propose mechanisms that reflect the nuances of their markets.

ITCITCTransmissionTransmission remains interested in MISO’s compliance process, as it remains interested in MISO’s compliance process, as it wants to ensure that it remains a non-market participant.wants to ensure that it remains a non-market participant.

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Regulatory Update Regulatory Update FERC approved changes to the MISO Transmission Owners FERC approved changes to the MISO Transmission Owners

Agreement to establish a Funds Trust Agreement (ER06-785).Agreement to establish a Funds Trust Agreement (ER06-785).

Trust is designed to receive, hold, and distribute transmission revenues and Trust is designed to receive, hold, and distribute transmission revenues and is intended to protect transmission revenues belonging to the MISO is intended to protect transmission revenues belonging to the MISO Transmission Owners, particularly in the event the Midwest ISO becomes Transmission Owners, particularly in the event the Midwest ISO becomes insolvent.insolvent.

FERC Administrative Law Judge (ALJ) issued an initial decision in FERC Administrative Law Judge (ALJ) issued an initial decision in the Seams Elimination Cost Adjustment (SECA) proceeding (EL02-the Seams Elimination Cost Adjustment (SECA) proceeding (EL02-111 et al).111 et al).

Generally finds that the SECA rates are unjust and unreasonable.Generally finds that the SECA rates are unjust and unreasonable.

FERC Approved the MISO’s request for a 60-day extension of the FERC Approved the MISO’s request for a 60-day extension of the September 1September 1stst filing deadline for the MISO to file a cost-allocation filing deadline for the MISO to file a cost-allocation methodology for regionally-beneficial transmission projects methodology for regionally-beneficial transmission projects (ER06-18).(ER06-18).

Extension was granted on August 17, 2006.Extension was granted on August 17, 2006.

Several proposals are currently being discussed. Several proposals are currently being discussed.

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Regulatory Update Regulatory Update ITCITCTransmission Transmission recently filed comments in response to the Order recently filed comments in response to the Order

888 reform NOPR (RM05-25).888 reform NOPR (RM05-25).

Advocated structural reforms and prudent expansion of the transmission Advocated structural reforms and prudent expansion of the transmission grid as a means of eliminating incentives towards discriminatory service.grid as a means of eliminating incentives towards discriminatory service.

Commented on Available Transmission Capacity calculations.Commented on Available Transmission Capacity calculations.

ITCITCTransmission Transmission filed for a Certificate of Public Convenience and filed for a Certificate of Public Convenience and Necessity for the construction of a transmission line through Necessity for the construction of a transmission line through Genoa, Hartland, Oceola, Milford, and Brighton Townships Genoa, Hartland, Oceola, Milford, and Brighton Townships (U–14861).(U–14861).

Hearings scheduled for November 28-30.Hearings scheduled for November 28-30.

FERC ALJ issued an initial decision in the investigation of zonal FERC ALJ issued an initial decision in the investigation of zonal pricing within PJM (EL05-121).pricing within PJM (EL05-121).

Initial decision found that existing license plate methodology is unjust and Initial decision found that existing license plate methodology is unjust and unreasonable and that postage stamp pricing is one of a couple unreasonable and that postage stamp pricing is one of a couple methodologies that is just and reasonable.methodologies that is just and reasonable.

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Marketing and Operations UpdateMarketing and Operations Update— Anne Jinks, Director, Stakeholder RelationsAnne Jinks, Director, Stakeholder Relations

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ITCTransmission Educational Tool

When the Blackout of 2003 occurred, many people were unaware of When the Blackout of 2003 occurred, many people were unaware of ITCITCTransmission Transmission and the importance of high voltage transmission. and the importance of high voltage transmission.

It became apparent to ITCIt became apparent to ITCTransmissionTransmission that as a new independent that as a new independent company focusing only on transmission, it was necessary to educate end company focusing only on transmission, it was necessary to educate end use consumers on the importance of maintaining the grid.use consumers on the importance of maintaining the grid.

Victor, a 345kV lattice-style transmission tower, was created as a way to Victor, a 345kV lattice-style transmission tower, was created as a way to explain our business in a simple manner and to capture the audience explain our business in a simple manner and to capture the audience attention. attention. Intended for audiences that are new to ITCIntended for audiences that are new to ITCTransmission, Transmission, i.e., municipality officials, i.e., municipality officials,

end-use customers, vendors, potential employees, schools, etc.end-use customers, vendors, potential employees, schools, etc.

Let’s meet Victor the High Power TowerLet’s meet Victor the High Power Tower

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Operations Performance

We experienced record peak loads in May, July and August.We experienced record peak loads in May, July and August.

On August 2, ITCOn August 2, ITCTransmissionTransmission set an all time record peak of 12,762MW set an all time record peak of 12,762MW which surpassed the previous record by over 400MW.which surpassed the previous record by over 400MW. There were no transmission related outages, voltage violations or system overloads.There were no transmission related outages, voltage violations or system overloads.

Our Planning Engineers identified problem areas on the system and Our Planning Engineers identified problem areas on the system and initiated projects necessary to strengthen the weak areas. These initiated projects necessary to strengthen the weak areas. These projects have increased capacity and boosted voltage levels.projects have increased capacity and boosted voltage levels. To increase import capability into our area, we completed the Michigan Electric To increase import capability into our area, we completed the Michigan Electric

Transmission Company (METC) interface project which allowed us to import Transmission Company (METC) interface project which allowed us to import approximately 800MW of power into our area helping us meet the record demand approximately 800MW of power into our area helping us meet the record demand that we experienced in August.that we experienced in August.

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Operations PerformanceITC Zone Load vs Generation

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Operations Performance

Without our capital investment and preventative maintenance, we would Without our capital investment and preventative maintenance, we would have experienced reliability issues during this peak load.have experienced reliability issues during this peak load.

Our Operations and Field Staff did everything possible to ensure Our Operations and Field Staff did everything possible to ensure maximum system capacity during this peak demand period.maximum system capacity during this peak demand period. For example, during these peak periods, we defer preventative maintenance on For example, during these peak periods, we defer preventative maintenance on

equipment until the load subsides, we delay routine maintenance on equipment, etc.equipment until the load subsides, we delay routine maintenance on equipment, etc.

We still have much work to do and need to continue rebuilding We still have much work to do and need to continue rebuilding infrastructure on our system to handle these demands and also be infrastructure on our system to handle these demands and also be prepared for unplanned events occurring on the system and the prepared for unplanned events occurring on the system and the increased traffic across regions.increased traffic across regions.

Our goal is to stay proactive in identifying capital projects that will help Our goal is to stay proactive in identifying capital projects that will help us to continue to meet future demands. us to continue to meet future demands.

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Recap & ClosingRecap & Closing— Anne Jinks, Director, Stakeholder RelationsAnne Jinks, Director, Stakeholder Relations

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Working TogetherWorking Together Our success depends on your success.Our success depends on your success.

Our only business is transmission. The independent transmission company model, Our only business is transmission. The independent transmission company model, focused on one product, will provide the highest level of benefits to our Partners in focused on one product, will provide the highest level of benefits to our Partners in the form of increased reliability, reduced congestion and a reduction in the overall the form of increased reliability, reduced congestion and a reduction in the overall cost of delivered energy.cost of delivered energy.

How are we performing in the reliability area? Let us know. Our goal is to How are we performing in the reliability area? Let us know. Our goal is to serve you more efficiently.serve you more efficiently.

Working together, identifying problems and sharing ideas is an essential Working together, identifying problems and sharing ideas is an essential component – let’s work for win-win solutions.component – let’s work for win-win solutions.

Let’s keep the lines of communication open.Let’s keep the lines of communication open.

Visit our website: Visit our website: www.itctransco.comwww.itctransco.com

Any suggestions/concerns please contact: Any suggestions/concerns please contact: [email protected]@itctransco.com or call or call 248-374-7250248-374-7250

REMINDER: Special Partners in Business Meeting – Attachment OREMINDER: Special Partners in Business Meeting – Attachment O

Thursday, September 14, 2006, 1:00 P.M.Thursday, September 14, 2006, 1:00 P.M.

Schoolcraft College – VisTaTech CenterSchoolcraft College – VisTaTech Center

Documents

Partners in Business Quarterly Meeting Fox Hills Golf and Banquet Center August 31, 2006 Plymouth, MI