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The Federal Energy Regulatory Commission (FERC) has approved a cost allocation proposal from ITC Midwest LLC for connecting generators to the electric grid. The decision makes it easier and reduces a cost barrier for generators - including wind energy developers - to connect to the high-voltage electric transmission system operated by ITC Midwest in Iowa and Minnesota.

Connection to the grid is necessary for generators to sell energy to customers located on the system. Previously, generators interconnecting to the ITC Midwest system were required to ultimately bear half the costs of most network upgrades, along with other costs of interconnection. Under the newly approved policy, generators will be fully reimbursed for the costs of network upgrades necessary to enable their interconnection with the ITC Midwest system, provided the generators meet certain eligibility requirements.

"The decision is consistent with FERC's direction to invest in the nation's electric transmission system to improve reliability and encourage open access to the grid," says Doug Collins, ITC Midwest executive director. "Given our strong wind profile in Minnesota and Iowa, this decision further encourages development of renewable electricity sources in the ITC Midwest service area."

SOURCE: ITC Holdings Corp.



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