Good day, ladies and gentlemen, and welcome to the ITC Holdings Corp Third Quarter Conference Call and Webcast. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. (Operator instructions) As a reminder, today’s program is being recorded. I would now like to introduce your host for today’s program, Gretchen Holloway, Director of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us for ITC’s 2014 third quarter earnings conference call. Joining me on today’s call is Joseph Welch, Chairman, President and CEO of ITC and Rejji Hayes, our Senior Vice President, CFO and Treasurer. This morning, we issued a press release summarizing our results for the third quarter. We expect to file our Form 10-Q with the Securities and Exchange Commission today. Before we begin, I would like to remind everyone aware of the cautionary language contained in the Safe Harbor statement. Certain statements made during today’s call that are not historical facts such as those regarding our future plans, objectives and expected performance reflects forward-looking statements under federal securities laws. We believe these statements are reasonable, they are subject to various risks and uncertainties and actual results may differ materially from our projections and expectations. These risks and uncertainties are discussed in our reports filed with the SEC such as our periodic reports on Forms 10-K and 10-Q and our other SEC filings. You should consider these risk factors when evaluating our forward-looking statements. Our forward-looking statements represent our outlook only as of today and we disclaim any obligation to update these statements except as may be required by law. A reconciliation of the non-GAAP financial measures discussed on today’s call is available on the Investor Relations page of our website. I will now turn the call over to Joe Welch.

Thank you, Gretchen, and good morning, everyone. I’m very pleased to report out another impressive quarter which should set the stage for another solid year overall performance. Before reviewing our performance I want to briefly touch on succession planning actions in the third quarter. In August ITC formally appointed Rejji Hayes as our new Senior Vice President, CFO and Treasurer. As I indicated on our last call we were on the custom of appointing a permanent CFO and we are seeking board approval to effectuate that appointment. We are very pleased to have Rejji filled the role and expect his appointment will continue to support ITC’s strategic objectives and keep us on track with respect to meeting our financial goals. Turning first to our operations, our system continues to perform well for the remainder of the summer with little impact from storms in Michigan in July. Our Michigan systems are on track once again for a top desk outperformance level in 2014 and ITC Midwest posted the lowest number of RTC in July and August since 2010. Our larger capital investment projects also remain on track. And while Rejji will provide a more detailed update on the various key projects, I want to comment on a couple of important projects specific milestones that have occurred recently and are expected to occur in the near term. First, last week we’ve received all state approvals from the Minnesota Public Utilities Commission for ITC’s Minnesota portion of the MV project number 3. After receiving the written order we will begin design and easement acquisition activities for that segment of the project. We anticipate beginning construction on the Minnesota portion of the project in late 2015. In addition the Kansas V-Plan project is set to be placed into service at the end of this…

Thank you Joe and good morning everyone. For the third quarter of 2014, ITC reported net income of $73.9 million or $0.47 per diluted share as compared to reported net income of $59 million or $0.37 per diluted share for the third quarter of 2013. Reported net income for the nine months ended September 30, 2014 was $197.3 million or $1.25 per diluted share compared to $156.6 million or $0.99 per diluted share for the same period last year. Operating earnings for the third quarter of 2014 were $73.7 million or $0.47 per diluted share compared to $66.5 million or $0.42 per diluted share for the third quarter of 2013. Operating earnings for the nine months ended September 30, 2014 was $216.1 million or $1.36 per diluted share compared to $188.6 million or $1.19 per diluted share for the same period last year. Operating earnings are reported on a basis consistent with how we have provided our guidance for the year and exclude the following items. First, they exclude lingering transactions charges from the entity transactions including our credit of $0.1 million for the third quarter of 2014 and expenses of $7.5 million or $0.05 per share for the third quarter of 2013. These expenses totaled $0.6 million and $31.9 million or $0.20 per share for the year-to-date period September 30, 2014 and 2013 respectively. They also exclude expense associated with certain acquisition accounting adjustments for ITC Midwest, ITC transmission and METC that resulted from the FERC audit order on ITC Midwest in May, 2012. The impact of this item totaled approximately $0.1 million for third quarter 2013 and approximately $0.1 million and $0.2 million for the year-to-date period September 30, 2014 and 2013 respectively. Lastly, operating earnings exclude expenses associated with the cash tender offer and consent solicitation transaction…

[Operator Instructions] Our first question comes from the line of Michael Weinstein from UBS. Your question please. Michael Weinstein – UBS Securities LLC: Hi guys.

Hi! Good morning. Michael Weinstein – UBS Securities LLC: Couple of questions. First one is can you explain where there is enough settlements of the share repurchase program in Q3 and also what is the plan for the rest of the year regarding that?

Yes. So with respect to the share repurchase agreement if you look at the volume weighted average price since we commenced the share repurchase on June 20, based on our math it's slightly higher than the price when we initially commenced it at $35.80 a share so the agent has full discretion to execute the settlement and I think based on the view app relative to the stock price, when we commenced is probably slightly higher. So I think the agent has chosen not to execute additional share repurchases over the past couple of months. That said the agent is obligated to execute on the full minimum of $130 million of share by the end of the year. So we expect more settlements obviously in Q4. Michael Weinstein – UBS Securities LLC: Right. And also can you just talk a little bit more about the SPP process what do you guys think about it and what kinds of – how have you bid into it and what projects maybe thinking about?

Well, the SPP project process has been basically laid out that you submit projects and if you understand transmission planning, which I probably guess most people don't, that we submitted a large number of volume of projects in the whole process I think there was over 1200 projects submitted which pretty much left SPP in a position to evaluate these projects almost I would say overwhelmed. And so they have turned out a relative few numbers of project to this date and I anticipate since they said that they are going to have another go around at this in the near future that they are in the process of trying to get all these projects evaluated. In the transmission planning process, normally the planner plans the process or plans the transmission and then turns them out to the world and says this is what needs to be built but we kind of did it backwards and I think it's really starting to cause all the RTOs have chosen this process at the (inaudible) what they are going to do but I think SPP given the fact that also that with the EPA announcement I think SPP and MISO both will be effective by this since I think they are going to have to start to look hard at this to try to figure out how they are going to get their region in a good position because I think that they are going to have to start to think about whether they want to continue this process or modify it going forward because if the EPA rules take effect in 2020 we are going to have to get something taking care of before 2020 otherwise we are going to have some reliability issues out there.

Michael this is Rejji. The only thing I would add to that is I think one of your questions is as well as whether we have bid into any SPP solicitations and the way it works is it's our understanding that the RP process in the form of competitive solicitation will not begin until Q1 of 2015 so we obviously plan to participate when the time comes but it has not commenced yet. Michael Weinstein – UBS Securities LLC: Let me just ask that with the wrong, I think did you guys propose any projects into the -- considering?

Oh yes. I think correct me Rejji if I am wrong, I think we have proposed like some 600 projects.

Slightly less than that. So over 300 and as Joe highlighted over 1200, Joe highlighted over 1200 projects submitted by RTOs and SPP and we submitted roughly a quarter of those so we certainly participated in the full manner and needless to say as we highlighted before we are committing a lot of time in resources to these effort look forward to us seeing what happens in the process commences. Michael Weinstein – UBS Securities LLC: And despite the fact that it's unwieldy do you think there is still on track for January to come out with I guess the short list of the presentation?

I would think that just realistically I – they are going to come out with something but I don't think it's going to be a full review of everything because I think again like I said I think they got overwhelmed. I didn’t think that they planned on that many projects coming in. And so I think there will be a short list but I don't know how false on that list will be. Michael Weinstein – UBS Securities LLC: Okay. Thank you very much.

Thank you.

Thank you. Our next question comes from the line of Charles Fishman from Morningstar. Your question please. Charles Fishman – Morningstar: Thank you. I guess my first questions for Rejji on the capital expenditure guidance for this year you brought up the bottom of the range significantly. I just want to make sure is that – is there any acceleration of projects from 2015 and 2014 or should we go back to the our reaffirming also your 2015 guidance that I realize is a little dated now going back to the Analyst Meeting of 803, is that how we should look at it?

I will answer your last question first. So we will provide guidance on 2015 later in the year as we always have and so it's too premature to highlight where 2015 is going but with respect to 2014, we are still on track to meet the numbers if you highlight before we brought the bottom end up of the range because we have made very good progress in our existing projects and I think there was also generator inner connection that was unforeseen that was realized in 2014. So it's a variety of cats and dogs but I wouldn't specifically say we have brought projects forward from 2015. Charles Fishman – Morningstar: Okay and then I guess my second question is for Joe on the MISO the fourth quarter on MISO one of the positive was to dismiss the incentive complaints. Is there anything still out there challenging that or has that been put to bed for a few years until this next decision comes around or can we count on those incentive in MISO for quite some time?

Well, I think that FERC in the New England order basically said that they first, they gave your DCF model and then they said the incentive can fill in what they think is that difference between where they came out which is they targeted the 75% of that DCF and the incentive. So I believe that yes, you can say that the incentives are going to be staying in place. I think it's fair to question whether they will be as robust going forward as they have been in the past. But that is still yet to be seen. I have been of the position but nobody has asked me that incentives were never to be used – the DCF model was never to be used as a cap because the instructions from congress to FERC was to put rules in place, the construction building the transmission and FERC chose the capital I think that came from pressure because of the state regulators wanting to see some limits on incentives but the short answer is that the incentives will stay in place I don't see them being as robust as they once were once all the dust settles, but it could be. Charles Fishman – Morningstar: Okay. But I mean for this pending complaint I mean, they have been dismissed right?

It's been put to rest as well as the capital structure for the third or fourth time. Charles Fishman – Morningstar: I got it. Thank you very much.

Thank you. [Operator Instructions] And our next question comes from the line of (inaudible). Your question please.

Hey guys.

Hey good morning.

The two projects that you discussed the lake Ire connector and the one other project are those included in your current CapEx guidance?

The quick answer is no. when we prepared our capital guidance and basically our five year capital plans from 2014 to 2018, the development portion of that the $1 billion didn’t pre-suppose those projects.

Okay. So there would be other projects in the development in that they don't account. Okay got you. And then do you have any estimates on the size of these projects from the CapEx perspective?

Yes, I think what we can say at this point is with respect the lake Ire project, the merchant line which is clearly the bigger of the two, it's probably too premature to speculate as to how big that project is. There is a lot of work that needs to be done with respect to siding and the overall evaluation of the project and needless to say because it's submarine, it's going to be quite costly as I see it will be significant percentage of our overall rate base, if – rate base is the wrong word but overall capital spending plan get out of relative basis. With the respect to new covert project that’s relatively small. Again as I mentioned this is so the – it's just the network facility that was put in place with a bilateral agreement with the generator. So relatively small compared to the standard projects we do but as we see and as Joe highlighted we view that as really a framework for future trades with generators who really don't want to deal with the hassle compliant with no requirements and so I think most generators want to focus on how they do best which is building power plants and they want to essentially outsource the transmission function responsibility to ITC and so well it's small project we really view it as sort of the bedrock for future things to come.

Got you. All right. But you are not – for the lake Ire with the significant percentage of overall CapEx is the most data you are ready to give it at this point?

It's quite large. I will just put it to that way.

Okay. All right. Thanks for the time guys.

Thank you.

Thank you. Our next question comes from the line of Rajeev Lalwani from Morgan Stanley. Your question please. Rajeev Lalwani – Morgan Stanley: Hi, good morning. Just sort of quick one as it relates to the development projects that are in your five-year capital plan and what plan would you be comfortable saying that number is as good to go, meaning say mid-15 when a lot of these are piece are down, would you be able to provide an update and say that a five-year outlook is good or may be just some color around when investors can get comfort with that plan.

Well, I think the thing is that as the landscape in development really continues to evolve. It's going to be hard for us to ever give you what I call the comfort that everyone wants because until we have a project locked, you are in a process that as a competitive process. So as in any other competitive process the game is in overkill, the game is over and so what we have done, always we very diligently, strategically weighted the projects and we've valuated them along the way to see how we are doing. And the RTO function is still really embryonic as far as this goes. So it is going to be hard to give you the kind of definition you want but what we have done for you is to try to give you some projects and the Lake Erie connectors, one of them and the Covert project is another that are in that. And so we try to fill that out with other projects that we can give you comfort on and try to give you clarity on and will give you as much clarity as each one comes to fruition. And then lastly, we this time added a slide for you so that you can take a look at the role going forward and also we have laid out for your capital allocation process one more time so that you can get comfort around, the kind of growth that we are really committing to and we have said we are going to be a double digit growth company over that timeframe. And so we try to give you as much clarity as we can and as much assurance is where the down side is but the upside on it works really hard because while Rejji was trying to explain that the Lake Erie connectors are really large but there is really a lot of things you have to do before you can get clarity on it. And so we try to hedge you the downside to show you what the downside is, the upside is going to be as aggressive as we can make it.

The only thing I would add to that is as you think about the portfolio of opportunities in order 1000 I think the real key variables here is they are essentially 31 (ph) perfect information of the volume of opportunities within each RTO, that's again an uncertainty. We can speculate as to what we think the size is but the actual volume remains to be same, I think two. The methodologies by which each RTO will evaluate the winners and losers, I think still the work is in process, we have good visibility at this point as to where they stand but again it’s still as we see it highly variable. And lastly, once bidding processes commence in the first half the next year, we have no visibility and is really competitive behavior and so that’s obviously going to dictate how successful we are when the time comes. So at this point to answer your question, it’s really tough to determine when we can say that the billion one is good but like I said I think, as Joe highlighted we have a lot of opportunities in the development portfolio and we feel very good about making our numbers, as we always have. Rajeev Lalwani – Morgan Stanley: Okay, if I could couple of other quick questions. In terms of the Lake Erie project, can you talk about the extent to which you had conversations with shippers and how that's been going?

We have not commenced the formal competitive solicitation for nonbinding bids from prospective shippers that will start in the very near term. As Joe highlighted in his opening remarks, we received negotiated rate authority in the FERC in September and so we are preparing the advertisements so that we can commence the shipping outside also basically the solicitation of prospective shippers over the course of Q4 and early Q1 of ’15. So I think we will have pretty good visibilities to where we stand at that point but I would also say as we shouldn’t rule out the fact that in addition to commencing was the equivalent of an option for capacity in the line we will also entertain bilateral agreements and so we are really very focused on making sure that we can bid out as much of the capacity online as possible, to diverse the project. Rajeev Lalwani – Morgan Stanley: All right and just one last question if I can, Joe I guess it’s a question for you assuming that we get also lot of time is what your longer term plans are I mean you finalized the CFO role but we’d love to hear more on, just given the (inaudible) what your plans are if you are comfortable answering that.

But you will have to rephrase it again for me because when you said CFO, I kind of checked out for a second. So what’s the question again? Rajeev Lalwani – Morgan Stanley: Sure, I guess your longer term plans at ITC, you had a great run so far and you have finalized to use the CFO but I guess this question is on your role longer term it comes up all the time with investors and (inaudible).

I see, so I’ll try to figure out when you guys ask me these questions are you try to push me out or you asking me to stay, we have started on very informal basis to talk about my future here at ITC, I make no bones about it I mean I am 66 years old and the fact of the matter is that we are really working hard on getting a very deliberate succession planning process but I will be honest with you that every day I come into work and especially when we start to talk about the development side of the business I get more excited about that and it actually makes me feel like I am a lot younger than I am. So I haven't made any commitments on it. I have been committed to seeing this company have a great growth profile and in my terms I want make sure that the pipeline is full and that everybody is in place and everybody is really well adjusted to their positions and so until that's done, I don't have any plans. Rajeev Lalwani – Morgan Stanley: All right, thanks for answering that.

Thank you. Our next question comes in the line of Neil Kalton from Wells Fargo Securities, your question please. Neil Kalton – Wells Fargo Securities: Good morning everybody.

Good morning.

Good morning, Neil. Neil Kalton – Wells Fargo Securities: Lake Erie, a couple of more on this project, so my understanding is that this is a project that has been sort of out there for few years but it hasn’t move forward, I was wondering if you could have explain what have been the stumbling block thus far and are there changed circumstances in the market that give you a feeling that it is going to have more chance of success going forward. And then second citing that project, I am not familiar with, so underwater citing are there issues there that we should be aware of.

First of all, there is a lot of people take a look at merchant projects and of course the way these things are developed is that there is a group of people out there and they go around and they try to pick point A and B where there is really economic differences and an opportunity, and then they start to develop it, that’s how this project came to pass. This wasn't developed by us but by other people. Then they start to find some people where they are seem to be interest and so they again come to people like us and because we are really good owner/operators and we probably get a couple of these every year. And we have a very tight filter that we used to evaluate these projects on and this is one that went through the filter. Now from that point, we start the process that you're talking about on the development side to say okay what are the regulatory restrictions, what are deciding restrictions actually the underwater cable is, I don’t want to say straightforward because it is complicated but it is a process that is well-documented in there is a process you have to go through and we have did it. So then it comes out on land and we have to get it moved both in Canada and United States. We have evaluated that and again don't see any showstoppers. The next piece of the puzzle is their interest in the line and of course we are starting that solicitation process right now but before even get there, you're going to see if there is appear to be on a very sustainable basis an ongoing proposition where this line is going to be good and we saw that. The last piece…

Thank you. Our next question comes from the line of Dan Eggers from Credit Suisse. Your question please.

That was a tough question.

You might have your mute button on? Daniel Eggers – Credit Suisse: My questions have been asked and answered. Thank you.

Okay.

Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Gretchen Holloway.

Thank you. Anyone wishing to hear the conference call replay available through November 04 can access the call by dialing 855-859-2056 toll free or 404-537-3406 with the passcode of 207-05-064. The webcast of this event will also be archived on the ITC website at itc-holdings.com. Thanks, everyone, and have a great day.