ATC's Delgado Speaks to Midwest State Regulators; Says state commissions must maintain involvement in energy planning and siting.

MADISON, Wis. -- ATC President and CEO Jose Delgado addressed state utility regulators at the Mid-American Regulatory Conference in Columbus, Ohio, today on the benefits of the stand-alone electric transmission business model. Delgado outlined ATC's program for getting difficult but critical transmission line projects in service on time, and asked state regulators to maintain their involvement in the planning process.

Formed in 2001 as the first stand-alone transmission utility in the country, ATC has invested nearly $1 billion in capital, nearly tripling the original book value of the company. "The stand-alone transmission model supports all market structures and state commission processes. Because of our open and cooperative approach with those affected by our projects, we've worked with state regulators and the public to complete projects thought to be nearly impossible under a more Balkanized transmission grid ownership structure," said Delgado.

Delgado emphasized, "All transmission is local, and the transmission owners are best at assessing 'constructability' of projects." The reason, he said, is that good transmission planning solves multiple system problems with each project and takes into account qualitative factors such as local concerns and state energy policies, issues that are below the radar of the RTO. "The RTO is critical in bringing a regional perspective to the planning table and assisting in the coordination of local plans." However he stressed, "The RTO cannot have veto power over projects. That authority rests with regulators as the entities accountable to state policy makers and the public," he said.

ATC and other independent transmission companies have advocated for a coordinated planning approach between transmission owners and regional organizations like the Midwest Independent Transmission System Operator. Delgado said, "The planning process must begin locally, where the needs of the people being impacted by the construction can be taken into account, and then it must be broadened to include the impact on the region. Regional coordinated planning achieves this objective."

In its first five years of operation ATC has:

--built or upgraded more than 710 miles of high-voltage line,

--connected more than 2,000 megawatts of new or expanded generation,

--made 103 new distribution service connections,

--reduced energy losses by 50 megawatts off system peak demand.

ATC plans, constructs, operates, maintains and will expand its transmission facilities to provide adequate and reliable transmission of power. ATC provides nondiscriminatory service to all customers, supporting effective competition in energy markets without favoring any market participant. A member of the Midwest ISO regional transmission organization, ATC owns approximately 8,900 miles of transmission lines with a total investment in facilities of $1.5 billion in portions of Wisconsin, Michigan, Minnesota and Illinois. For more information, visit our Web site at www.atcllc.com.