Independent transmission companies: the key to capital formation for electric transmission in North America

The electric transmission infrastructure in North America is a key component of both our economic well-being and our quality of life. Independent transmission companies (ITC's) are companies that own or control neither electric generation or electric distribution assets. There are several factors that favor ITC's as investment vehicles for new transmission construction. Federal regulation and federal regulatory incentives, financial and operating structure flexibility, and both cost of capital and return on equity considerations provide the ITC with an advantage over vertically integrated utilities. ITC's also have access to capital markets with investment grade credit, and a capital markets that is friendly to asset backed investing and lending. The companies do not suffer internal competition for capital with other lines of business, and they stand to reward both customers and investors by participating in the building of our electric transmission infrastructure.