ITC Holdings Offers New Capital Plan, Earnings Guidance
Visit CBS Detroit's
The Novi electric grid management company ITC Holdings Corp. (NYSE: ITC) unveiled a new five-year capital investment plan and its first glimpse at 2011 earnings guidance at an analyst event in New York City Monday.
The company said it planned to invest about $3.9 billion in capital over the next five years, from 2011 through 2015.
The company reiterated its 2010 earnings guidance at $2.70 to $2.75 a share, and provided its first peek at 2011 earnings guidance — $3.20 to $3.30 a share.
The five-year capital investment plan is projected to increase ITC’s consolidated rate base from approximately $2.6 billion at the end of 2010 to approximately $4.9 billion at the end of 2015. This increase in projected rate base is expected to result in compound annual growth in earnings per share in the range of 15 to 17 percent over this period.
“ITC’s new five-year capital plan reflects our on-going commitment to investment in new transmission infrastructure to improve the overall reliability and performance of the grid for the benefit of our customers,” said Joseph L. Welch, chairman, president and CEO of ITC. “Our capital investments also create value for our shareholders and serve to establish a foundation for sustainable long-term growth. We remain optimistic regarding our ability to execute on these plans given the significant need for transmission infrastructure projects that continues to exist and the increasingly supportive regulatory environment in the United States.”
2011 capital expenditures are expected to be approximately $560 to $640 million, including $60 to $75 million, $155 to $170 million, $225 to $250 million, and $120 to $145 million, for ITCTransmission, METC, ITC Midwest and ITC Great Plains, respectively.
The midpoint of the 2011 earnings guidance range represents an increase of approximately 19 percent compared to the midpoint of the current 2010 earnings guidance range, which is $2.70 to $2.75 per share.
(c) 2010, WWJ Newsradio 950. All rights reserved.