2.2.0.25falsefalse0205 - Disclosure - Long-Term Debttruefalsefalse1falsefalseUSDfalsefalse1/1/2011 - 3/31/2011 USD ($) / shares USD ($) $Jan-01-2011_Mar-31-2011http://www.sec.gov/CIK0001317630duration2011-01-01T00:00:002011-03-31T00:00:00USDEPSDividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0USDStandardhttp://www.xbrl.org/2003/iso4217USDiso42170USDUSD$2true0us-gaap_LongTermDebtAbstractus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringNo definition available.falsefalseLong-Term Debt [Abstract]3false0us-gaap_LongTermDebtTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseverboselabel1falsefalsefalse00  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>5. LONG-TERM DEBT</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>Derivative Instruments and Hedging Activities</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     We use derivative financial instruments, including interest rate swap contracts, to manage our exposure to fluctuations in interest rates. The use of these financial instruments mitigates exposure to these risks and the variability of our operating results. We are not a party to leveraged derivatives and do not enter into derivative financial instruments for trading or speculative purposes. On September 27, 2010, ITC Holdings entered into a 10-year forward starting interest rate swap agreement (the “September 2010 swap”) with a notional amount of $50.0 million. Additionally, on March 16, 2011, ITC Holdings entered into two 10-year forward starting interest rate swap agreements (the “March 2011 swaps”) each with a notional amount of $25.0 million. The interest rate swaps manage interest rate risk associated with the forecasted future issuance of fixed-rate debt related to the expected refinancing of the maturing $267.0 million ITC Holdings 5.25% Senior Notes due July 15, 2013. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The interest rate swaps call for ITC Holdings to receive interest quarterly at a variable rate equal to LIBOR and to pay interest semi-annually at a fixed rate of 3.60% for the September 2010 swap and a fixed rate of 4.45% for the March 2011 swaps effective for the ten-year period beginning July 15, 2013. The agreements will be terminated no later than the effective date of the interest rate swaps of July 15, 2013. The interest rate swaps have been determined to be highly effective at offsetting changes in the fair value of the forecasted interest cash flows associated with the expected debt issuance attributable to changes in benchmark interest rates from the trade date of the interest rate swaps to the issuance date of the debt obligation. As of March 31, 2011, there has been no ineffectiveness recorded on the condensed consolidated statement of operations. The interest rate swaps qualify for hedge accounting treatment, whereby any pre-tax gain or loss recognized from the trade date to the effective date for the effective portion of the hedge is recorded in accumulated other comprehensive income (loss). These amounts will be accumulated and amortized as a component of interest expense over the life of the forecasted debt. As of March 31, 2011, the fair value of the derivative instruments was an asset of $4.3 million. </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>Revolving Credit Agreements</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>ITC Holdings Revolving Credit Agreement</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, ITC Holdings had no amounts outstanding under the ITC Holdings Revolving Credit Agreement. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>ITCTransmission/METC Revolving Credit Agreement</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, ITCTransmission and METC had $11.6 million and $12.8 million, respectively, outstanding under the ITCTransmission/METC Revolving Credit Agreement. The ITCTransmission/METC Revolving Credit Agreement has a scheduled maturity of March 29, 2012 and amounts outstanding as of March 31, 2011 are presented in the current liabilities section of our consolidated statement of financial position. The weighted-average interest rate on borrowings outstanding under the agreement was 0.5% at March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>ITC Midwest Revolving Credit Agreement</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 11, 2011, ITC Midwest entered into a new revolving credit agreement (the “2011 ITC Midwest Revolving Credit Agreement”) that establishes an unguaranteed, unsecured revolving facility under which ITC Midwest may borrow up to $75.0 million, in addition to the borrowing capacity under the ITC Midwest revolving credit agreement, dated as of January 28, 2008 (“2008 ITC Midwest Revolving Credit Agreement”). The maturity date of the 2011 ITC Midwest Revolving Credit Agreement is February 11, 2013. ITC Midwest’s loans made under the 2011 ITC Midwest Revolving Credit Agreement bear interest at a variable rate, with rates on LIBOR-based loans varying from 125 to 150 basis points over the applicable LIBOR rate, depending on ITC Midwest’s credit rating, and rates on other loans at the higher of prime, 50 basis points over the federal funds rate or 100 basis points over the one month LIBOR plus an applicable margin varying from 25 basis points to 50 basis points in each case, depending on ITC Midwest’s credit rating. The 2011 ITC Midwest Revolving Credit Agreement also provides for the payment to the lenders of a commitment fee on the average daily unused commitments at rates varying from 0.125% to 0.175% each year, depending on ITC Midwest’s credit rating. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, ITC Midwest had $49.6 million outstanding under the 2008 ITC Midwest Revolving Credit Agreement and the 2011 ITC Midwest Revolving Credit Agreement. The weighted-average interest rate on borrowings outstanding under the agreements was 0.8% at March 31, 2011. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%"><b><i>ITC Great Plains Revolving Credit Agreement</i></b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     On February 16, 2011, ITC Great Plains entered into a revolving credit agreement (the “ITC Great Plains Revolving Credit Agreement”) that established an unguaranteed, unsecured revolving credit facility under which ITC Great Plains may borrow and issue letters of credit up to $150.0 million. The maturity date of the ITC Great Plains Revolving Credit Agreement is February 16, 2015. Loans made under the ITC Great Plains Revolving Credit Agreement will bear interest at a variable rate, with rates on LIBOR-based loans varying from 150 to 275 basis points over the applicable LIBOR rate, depending on ITC Great Plains’ credit rating and rates on other loans at the higher of prime, 50 basis points over the federal funds rate or 100 basis points over the one month LIBOR rate plus an applicable margin varying from 50 basis points to 175 basis points in each case, depending on ITC Great Plains’ credit rating. The ITC Great Plains Revolving Credit Agreement also provides for the payment to the lenders of a commitment fee on the average daily unused commitments at rates varying from 0.25% to 0.50% each year, depending on ITC Great Plains’ credit rating. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     At March 31, 2011, ITC Great Plains had $20.5 million outstanding under the ITC Great Plains Revolving Credit Agreement. The weighted-average interest rate on borrowings outstanding under the agreement was 2.0% at March 31, 2011. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>  <!-- Begin Block Tagged NotefalsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringThis element may be used as a single block of text to encapsulate the entire disclosure for long-term borrowings including data and tables.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 falsefalseLONG-TERM DEBT12Long-Term DebtUnKnownUnKnownUnKnownUnKnownfalsetrue