INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

INTANGIBLE ASSETS

We have recorded intangible assets as a result of the METC acquisition in 2006. The carrying value of these assets was $38.0 million and $40.3 million (net of accumulated amortization of $20.4 million and $18.1 million) as of September 30, 2013 and December 31, 2012, respectively.

We have also recorded intangible assets for payments and obligations made by ITC Great Plains to certain transmission owners to acquire rights which are required under the SPP tariff to designate ITC Great Plains to build, own and operate projects within the SPP region, including the KETA Project and the Kansas V-Plan Project. The carrying amount of these intangible assets was $11.4 million and $8.2 million (net of accumulated amortization of $0.4 million and $0.3 million) as of September 30, 2013 and December 31, 2012, respectively.

During the three months ended September 30, 2013 and 2012, we recognized $0.8 million of amortization expense of our intangible assets and $2.4 million and $2.3 million for the nine months ended September 30, 2013 and 2012, respectively. For each of the next five years, we expect the annual amortization of our intangible assets that have been recorded as of September 30, 2013 to be $3.2 million per year.