Please stand by. We’re about to begin. Good day, everyone. Welcome to the ITC Holdings Corporation second quarter 2008 financial results conference call and webcast. Today’s call is being recorded. At this time, I’d like to turn the conference over to Pat Wenzel. Please go ahead.

Good morning, and thank you for joining us for ITC’s 2008 second quarter earnings conference call. Joining me on today’s call are Joseph Welch, Chairman, President, CEO of ITC, and Edward Rahill, our Senior Vice President and CFO. Last night we issued a press release summarizing our second quarter results. We expect to file our Form 10-Q with the Securities and Exchange Commission today. Before we begin, I would like to remind everyone of the cautionary language contained in the following Safe Harbor statements. Certain statements made during today's call that are not historical facts, such as those regarding our future plans, objectives, and expected performance, are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of today. While we believe that these statements and their underlying assumptions are reasonable, investors should know that actual results may differ from our projections and expectations because they are based on current facts and are subject to risks and uncertainties. A discussion of the risks inherent in our business that could cause these differences may be found in certain documents filed with the SEC such as our Form 10-Q expected to be filed today, our other periodic reports filed on Forms 10-Q and 10-K as well as our other SEC filings. You should consider these risk factors when evaluating our forward-looking statements. We disclaim any obligations to update or alter our forward-looking statements except as required by law. At this time, I would like to turn the call over to Ed Rahill to discuss our second quarter financial results.

Thanks, Pat. We are very pleased with our 2008 second quarter financial results, of which demonstrate the continued success of our growth strategy. Our year-over-year improvement was mainly driven by the ITC Midwest acquisition of Interstate Power and Light Company or IPL’s electric transmission assets, and growth and rate base at ITC Transmission and METC. In the second quarter of 2008, ITC reported net income of $28.7 million or $0.57 per fully diluted share. This compares with a net income of $20 million or $0.46 per diluted share in the second quarter of 2007. Operating revenues increased $54.3 million to $160.6 million for the second quarter over a comparable period in 2007. Network revenues increased by $32.5 million due to our acquisition of the IPL transmission assets. METC and ITC Transmission also recognize additional network revenues of $8.9 million and $5.8 million, respectively due to the higher net revenue requirement as a result of higher rate base, operating expenses, and taxes. Point-to-point scheduling and control dispatch revenues also increased for the second quarter in 2008, compared to the second quarter of 2007. In the second quarter, operation and maintenance or O&M expenses of $32.9 million were $11.4 million higher than the same period in 2007. Increases in O&M expenses in the second quarter were mainly driven by expenses incurred by the ITC Midwest that were not included in our results of operations for three months ending in June 30th of 2007. General and administrative expenses or G&A expenses increased by $9.2 million compared to 2007. G&A expenses increased primarily due to personnel additions and higher business expenses, all of which include incremental costs incurred by ITC Midwest. These increases are due to the continued growth of ITC. Depreciation and amortization expenses increased $6.7 million in the three months ended June…

Thanks, Ed. Our main focus for the first half of 2008 was to deliver on our earnings commitment and on integrating and improving our operations. Our robust year-to-date results demonstrate our continued ability to deliver on our financial commitments as we continue to focus on the best-in-class transmission operations, and completing the integration of the IPL transmission assets into our operation. The integration is on track and going very well. Many core functions such as engineering, planning, and finance have been transitioned, and we are right on track with efforts in other departments. Construction of three of our five warehouse locations is complete, and the remaining two locations are scheduled to be completed by the end of September. Our field operations and maintenance contractor has established the needed union contracts, and has hired experienced field personnel with direct knowledge of the system. Approximately 52 field crew have been already hired and training is underway. Likewise, our capital construction contractors are staffing up and getting ready to assume responsibility for constructing the needed improvements to the transmission system in the ITC Midwest service territory. We are on track for transition to the full operation control of the 69kV and higher transmission assets by December 31st. These efforts demonstrate the huge commitment of management, employees, and resources that we have made at ITC Midwest. Our experience in the last two acquisitions and integration efforts is really paying off as we apply lessons learned from the transition from Detroit Edison and Consumers Energy. As many of you probably are aware, during the week of June 14th, the Cedar River crested to 19 feet above flood stage flooding hundreds of city blocks in and around Downtown Cedar Rapids, the location of our Iowa headquarters for ITC Midwest. Employees evacuated our office and have been…

Thank you. (Operator instructions) And we will go first to Dan Eggers with Credit Suisse. Dan Eggers – Credit Suisse: Hey, good Morning. Joe, could you just talk a little bit about the thinking as far as timing on updating CapEx plans with kind of (inaudible) some of the original estimates under (inaudible) player basis.

Our current plans, Dan, are to do that in September when we have our financial analyst meeting. Dan Eggers – Credit Suisse: To again, ITC and METC then. Are we going to get Midwest or is that going to be – is it going to take a little more time?

I think Midwest is going to take us a little more time. I’m not complaining, but the flood did kind of burrow a hitch in our plans. Dan Eggers – Credit Suisse: Okay. But on the equipment side, with the running commodity prices, is there any kind of update as far as how much cost inflation you’re seeing on equipment today, say, versus 12 months ago or so?

When we started the business, and I think I’ve talked to you all about this a while back, we actually entered into a long term agreement with our suppliers, which really mitigated a lot of the commodity increases. I mean we still are seeing increases, but ours are not nearly what the average is for the industry. Dan Eggers – Credit Suisse: If you were to, vary is a generator term, but market-to-market there was cost. How far below market do you think your contracts are? Take it equipment versus what if you’re just going to go off the shelf to buy today?

Oh, I don’t really know. I haven’t asked that question based on that. I can follow up on that one for you. Dan Eggers – Credit Suisse: Okay. And I guess just one last one with the Michigan legislations, certainly seeming to head toward a renewable standard, and would it be being the size more than anything else. I guess that there was over $100 million in CapEx you saw that could come with renewables in the state. Any thoughts on what that opportunity looks like or anything you want to hazard against to?

I think we’re still in that range of – I think we’re probably north of $100 million, but the fact is that the legislation is one of the things that we’re working on to try to help you people focused on is to get the legislation to actually focus on doing this with the minimum amount of infrastructure build rather than the current way. I think the current way that we interconnect wind or any generators is pretty inefficient. And we need to really look at this to minimize the impact both on the environment and on rate. But not withstanding that, if you just look at the standard wind maps you’re going to come out to the belief that we’re going to have to build somewhere between $100 million and $200 million worth of transmission. But the way the rules work, if we were to streamline them, we could bring that in at the lower number not the higher number. Dan Eggers – Credit Suisse: With the attachment (inaudible), does that mean you would look to try and build standard transmission lines into a windy region and less tentacles go out versus building a line to each project and have them on higher scale.

That would be our wish. It’s a lot more efficient. Everyone complains about siting [ph]. And siting certainly is an issue, but it is a heck of a lot easier to site one major line rather than siting five dozen lines. And it’s a lot easier to coordinate it if we could get people to start to focus on – we want to develop regions for wind much like they were doing in Texas rather than we’re just going to let it haphazardly be sited. Dan Eggers – Credit Suisse: Do you have momentum to get in that to happen? Is that coming up in all the language?

I would want to say that we have momentum. I think that the reality is that everybody wants to pass legislation to feel good about the renewables, and they don’t want to do anything to hold it up. And so, we’ve certainly made that issue known and hope that the legislator legislates or listens. But a lot of people think they should try to do this to run, rush out over siting, and that’s not the case. There’s never been anything that we’ve proposed other than to shorten the timing on the hearing process and deciding, but to let everything take place as it would under the law. Dan Eggers – Credit Suisse: Okay. Thank you.

(Operator instructions) We’ll go next to Eric Beaumont with Copia Capital. Eric Beaumont – Copia Capital: Guys, congratulations on a good quarter.

Thank you. Eric Beaumont – Copia Capital: One thing I want to ask about is the regional cost sharing revenues. Obviously, it’s been a nice uptake for the year. How do we think about those kinds of (inaudible)? We think about those – being more kind of levelized based on what we’ve seen in the first two quarters or can you get some color there?

Ed, do you want to take that?

Yes. I think we’re looking at, probably, about $7 million. And you’re going to see as projects, in myself, continue to start getting cost sharing under the tariff if you’re going to see an increase. But I think you’ll see from its contribution, vis-a-vis our overall revenue requirement is really minimal at this time. I could just say over time, in talking to our planning folks and our management folks is that we do see that the bill – but we are not, at this time, putting it into our forecast as they significant – additional revenue item. Ideally if the regional projects are going to be built, that could change. Eric Beaumont – Copia Capital: Okay. And when I think of this quarter per point-to-point, obviously, we knew there were – because of floods and some other things for (inaudible) transmission outages, how much of the point-to-point things and scheduling revenues were driven by some of the other transmission outages versus just standard business as usual?

I can answer that. Right now we’re seeing point-to-point of becoming even a lot – it’s a less significant revenue item for us. Back when we started the company in ’03, ’04, ’05, it was significant. But as more and more of the load isn’t moved to network load that we really are at the point where point-to-point is not – does not have a meaningful impact on our financials. Eric Beaumont – Copia Capital: Okay. And I guess finally in this May, obviously be deferred until next month, but is there anything with regard to either the JV with APM, the 765 line, or Kansas that you can speak of at this point?

I think you know the things that we’ve said with regard to the JV is we’re still in the process working on it. We have been a little bit preoccupied with making sure that we got the service restored in Iowa. And it really took a Herculean effort to get everything done in Iowa. But we still are moving forward with the plant in Kansas. We are in the hearing process. I mean there’s not much more we can wait – not much more we can do other than wait for the KCC to make their ruling. And of course, same thing goes in Oklahoma, we’re waiting for their ruling there from the Oklahoma PC also. Eric Beaumont – Copia Capital: SPP is the apparent preference release 765 overlay and OGE going with a PM 765 change, anything with regard to either Kansas or Oklahoma? Or just shift the opportunities (inaudible)?

I mean let’s take them one at a time. There’s a lot of what I consider to be confusion about what happened and what’s going on. Clearly, what you have is – taking place is there’s, and this is a good thing for customers, competition. The joint venture with AP, MidAm [ph] and Westar in Kansas, is the end product is that there is a joint venture LLC out there by the name of Prairie Wind Transmission. Prairie Wind Transmission doesn’t have as much utility status as ITC Great Plains have. It’s a different company. While it is made up of utilities, it has no more utility status in that state than anyone else has. And they have to go through the process, and that’s what they haven’t done. So to that extent, it adds competition and maybe a little confusion. But they have got a lot of process to go through and we’re probably a year, a year and a half ahead of them. As far as the 765-kV overlay is concerned, the original SPP plan was, and I’ll speak to the Kansas V plan, was to build that at 345-kV. If you look at our filing and our responses to all of that is that we’ve said that if SPP wanted to direct it at 765-kV, we would build it at 765-kV. So there’s nothing new that they brought to the table other than someone else to put a proposal on the table. Eric Beaumont – Copia Capital: Very kind. I appreciate the color. Thanks, for that head.

We’ll take our next question from Sarah Akers with Wachovia. Sarah Akers – Wachovia: Most of my questions have been answered. But a quick follow-up on Kansas. Where do you see the opportunity in Kansas beyond the sphere beyond the line and the plant as well. How big do you think the opportunity is beyond those two projects?

I felt early on, and what I’ve told everyone – God, I don’t even remember. Probably, when we opened up the business in ITC Great Plains that I thought at that time that we had an opportunity to build a company somewhere that would be in the size range of what ITC Transmission was. At that time, it was about $500 million to $550 million rate base company. And I still think that that’s probably a good number to shoot for. Sarah Akers – Wachovia: Great. Thank you.

(Operator instructions) We’ll go next to Steven Gambuzza with Longbow Capital. Steven Gambuzza – Longbow Capital: Good morning.

Steve, good morning. Steven Gambuzza – Longbow Capital: Could you provide just some time of what the expected timing would be on the decisions in Kansas and Oklahoma, Kansas regarding the line and Oklahoma regarding utility status?

Well first thing I could tell you is when I predict responses to regulatory filings on timing, I’m usually wrong. But we expect to get orders by the end of the year. Steven Gambuzza – Longbow Capital: Okay. And the conversation earlier in the call regarding a potential renewal portfolio standard in Michigan and that driving incremental transmission investment, I just wanted to make sure I understood it. Is that – that wouldn’t be – that would be an addition to things you already talked about, is that correct?

That’s correct. Steven Gambuzza – Longbow Capital: And would you mind repeating what you’ve thought. You mentioned that –

We think that on one end of the scale, depending on how the legislation goes and how the rules start to play out, you’re probably at about $100 million of additional investment, and maybe high as $200 million if the rules don’t play out as well. And when I say don’t play out as well is we don’t utilize our abilities effectively because the legislation keeps the ineffective nature of how we’re doing things in place. Steven Gambuzza – Longbow Capital: That be a cross both to METC and ITC for (inaudible)?

That’s correct. Steven Gambuzza – Longbow Capital: Okay. And what is the kind of the legislative status of the RPS? Do you have any sense of the one that might actually get voted on or –?

Well, I’m expecting sometime probably after September 1st. It appears, from everything that I read on a daily basis, both in political publications and what our lobbyists are telling us, it has a lot of momentum. I think there’s a lot of behind the scenes negotiations going on because it is an election year. And so people get distracted with elections. But I think it will happen before the election. Steven Gambuzza – Longbow Capital: Thank you very much.

We’ll take our next question from Renee Reynolds with Gilder Gagnon and Howe. Renee Reynolds – Gilder Gagnon and Howe: Hi. Good morning. Ed, can you comment on where you are with additional development expenses? I think on previous calls you said the whole thing to have some additional expense in the second half. So I’m wondering if the updated guidance reflects, I guess, less optimism about your development plan or if –?

No. I don’t think that’s the case really. Year-to- date we spent about $1.9 million, and we expect that we will spend more for the remainder of the year. But we really can’t comment on the amounts since we are on the process on working on several development activities that don’t want to play our cards on this. If the opportunity arises, we will spend development (inaudible) as needed to quickly move forward on these opportunities. I think it’s just – rest assured, we have ample resources to be able to continue to pursue development activities as they arise and still meet our guidance – our revised guidance for 2008. So I don’t want you to think that we’re not putting an effort in. I just want you to understand, as Joe said at the beginning of this, is that we are really not going to comment on anything until it’s really been locked up and complete. And so I really – sorry if I’m a little vague, but that’s where we’re at. Renee Reynolds – Gilder Gagnon and Howe: No. That’s fine. I’m just glad to hear that you’re outlook is still positive. Thank you.

Thank you.

It appears we have no further questions at this time. I’d like to turn the call back to our speakers for any additional or closing remarks.

This concludes the question-and-answer portion of our call. Before I end the call, I’d like to thank everyone who participated today. Anyone wishing to hear the conference call replay available through August 14th, 2008, should dial toll free 888-203-1112 domestic or 719-457-0820 International. The pass code is 1924427. The webcast of this event will also be archived on the ITC Holding’s Web site at https://investor.itc-holdings.com. Good bye, and have a great day.

Once again that does conclude today’s call. We do appreciate your participation. You may disconnect at this time.