XML 106 R90.htm IDEA: XBRL DOCUMENT v3.3.1.900
COMMITMENTS AND CONTINGENT LIABILITIES (Details)
3 Months Ended 12 Months Ended
May. 01, 2002
Dec. 31, 2015
USD ($)
Sep. 30, 2015
USD ($)
[1],[2]
Jun. 30, 2015
USD ($)
[1],[2]
Mar. 31, 2015
USD ($)
[1],[2]
Dec. 31, 2014
USD ($)
Sep. 30, 2014
USD ($)
[2]
Jun. 30, 2014
USD ($)
[2]
Mar. 31, 2014
USD ($)
[2]
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Dec. 31, 2013
USD ($)
Oct. 20, 2015
Apr. 06, 2015
Jan. 31, 2015
Jan. 05, 2015
Commitments and Contingent Liabilities                                
FERC approved capital structure, equity percentage   60.00%               60.00%            
Non-current regulatory liabilities   $ 254,788,000       $ 160,070,000       $ 254,788,000 $ 160,070,000          
Operating revenues   224,034,000 [1],[2] $ 273,189,000 $ 275,058,000 $ 272,487,000 231,097,000 [2] $ 270,134,000 $ 263,214,000 $ 258,603,000 1,044,768,000 [1],[2] 1,023,048,000 [2] $ 941,272,000        
Interest expense                   203,779,000 186,636,000 168,319,000        
NET INCOME   37,365,000 [1],[2] $ 65,573,000 $ 72,336,000 $ 67,132,000 46,738,000 [2],[3] $ 73,873,000 [3] $ 54,336,000 [3] $ 69,136,000 [3] 242,406,000 [1],[2] 244,083,000 [2],[3] 233,506,000        
Purchase obligations   61,400,000               61,400,000            
Rent expense                   1,100,000 1,000,000 $ 800,000        
Future Minimum Lease Payments                                
2016   932,000               932,000            
2017   824,000               824,000            
2018   700,000               700,000            
2019   545,000               545,000            
2020 and thereafter   1,971,000               1,971,000            
Total minimum lease payments   4,972,000               4,972,000            
Customer Concentration Risk | DTE Electric                                
Other Commitments                                
Major customer revenue                   232,600,000            
Customer Concentration Risk | Consumers Energy                                
Other Commitments                                
Major customer revenue                   244,600,000            
Customer Concentration Risk | IP&L                                
Other Commitments                                
Major customer revenue                   $ 299,900,000            
Customer Concentration Risk | Billed Revenues | DTE Electric                                
Other Commitments                                
Concentration percentage                   20.80%            
Customer Concentration Risk | Billed Revenues | Consumers Energy                                
Other Commitments                                
Concentration percentage                   21.90%            
Customer Concentration Risk | Billed Revenues | IP&L                                
Other Commitments                                
Concentration percentage                   26.80%            
Estimated Potential Refund Related to Return on Equity Complaint                                
Commitments and Contingent Liabilities                                
Non-current regulatory liabilities [4]   167,977,000       47,780,000       $ 167,977,000 47,780,000          
Rate of Return on Equity and Capital Structure Complaint                                
Commitments and Contingent Liabilities                                
Estimated potential refund, minimum   168,000,000               168,000,000            
Estimated potential refund, maximum   212,400,000               212,400,000            
Operating revenues                     46,900,000          
Additional potential estimated refund, pre-tax   44,400,000               44,400,000            
Additional potential estimated decrease to net income   $ 27,300,000               27,300,000            
Rate of Return on Equity and Capital Structure Complaint | Impact from Recognition of Liability                                
Commitments and Contingent Liabilities                                
Operating revenues                   115,100,000 46,900,000          
Interest expense                   5,100,000 900,000          
NET INCOME                   73,200,000 28,900,000          
Rate of Return on Equity and Capital Structure Complaint | Impact from Recognition of Liability | 2014 and 2013                                
Commitments and Contingent Liabilities                                
NET INCOME                   $ 28,400,000            
Rate of Return on Equity and Capital Structure Complaint | Impact from Recognition of Liability | 2013                                
Commitments and Contingent Liabilities                                
NET INCOME                     2,900,000          
Rate of Return on Equity and Capital Structure Complaint | Complaint One | Expert Witness Testimony                                
Commitments and Contingent Liabilities                                
Recommended rate of return on equity in the event FERC elects to change base return on equity                           11.39%    
Presiding administrative law judges recommended base ROE on initial decision on initial complain                           10.32%    
Presiding administrative law judges recommended maximum ROE on initial decision on initial complain                           11.35%    
Rate of Return on Equity and Capital Structure Complaint | Complaint Two | Expert Witness Testimony                                
Commitments and Contingent Liabilities                                
Recommended rate of return on equity in the event FERC elects to change base return on equity                         10.75%      
ITCTransmission                                
Commitments and Contingent Liabilities                                
Rate of return on equity   12.38%               12.38%            
ITCTransmission | Rate of Return on Equity and Capital Structure Complaint | Complaint One                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   9.15%               9.15%            
Complaint capital structure, equity percentage   50.00%               50.00%            
FERC approved capital structure, equity percentage   60.00%               60.00%            
ITCTransmission | Rate of Return on Equity and Capital Structure Complaint | Complaint Two                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   8.67%               8.67%            
ITCTransmission | Sales and Use Tax Audit                                
Commitments and Contingent Liabilities                                
Potential liability   $ 18,000,000               $ 18,000,000            
Recorded contingent liability   5,900,000.0               5,900,000.0            
ITCTransmission | Sales and Use Tax Audit | Audit Period                                
Commitments and Contingent Liabilities                                
Potential liability   10,400,000               10,400,000            
MISO Operating Subsidiaries                                
Commitments and Contingent Liabilities                                
Equity in capital structure for ratemaking purposes   $ 2,900,000,000               $ 2,900,000,000            
Effect on net income from 10 basis point reduction in the authorized base return on equity           $ 2,900,000         $ 2,900,000          
ITC Midwest                                
Commitments and Contingent Liabilities                                
Rate of return on equity   12.38%               12.38%            
Approved Return on Equity Rate Incentive Adder for Participation in Regional Transmission Organization                               0.50%
ROE rate incentive adder for independent transmission ownership                             1.00%  
ITC Midwest | Rate of Return on Equity and Capital Structure Complaint | Complaint One                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   9.15%               9.15%            
Complaint capital structure, equity percentage   50.00%               50.00%            
FERC approved capital structure, equity percentage   60.00%               60.00%            
ITC Midwest | Rate of Return on Equity and Capital Structure Complaint | Complaint Two                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   8.67%               8.67%            
METC                                
Commitments and Contingent Liabilities                                
Rate of return on equity   12.38%               12.38%            
Approved Return on Equity Rate Incentive Adder for Participation in Regional Transmission Organization                               0.50%
METC | Purchase and Sale Agreement for Ancillary Services | Consumers Energy                                
Other Commitments                                
Original term 1 year                              
Automatic renewal term                   1 year            
METC | Easement Agreement | Consumers Energy                                
Other Commitments                                
Automatic renewal term                   50 years            
Annual cost                   $ 10,000,000            
Number of automatic renewals                   10            
METC | Rate of Return on Equity and Capital Structure Complaint | Complaint One                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   9.15%               9.15%            
Complaint capital structure, equity percentage   50.00%               50.00%            
FERC approved capital structure, equity percentage   60.00%               60.00%            
METC | Rate of Return on Equity and Capital Structure Complaint | Complaint Two                                
Commitments and Contingent Liabilities                                
Reduced rate of return on equity   8.67%               8.67%            
METC | Sales and Use Tax Audit                                
Commitments and Contingent Liabilities                                
Potential liability   $ 10,500,000               $ 10,500,000            
Recorded contingent liability   $ 0               $ 0            
ITC Great Plains | Maintenance Agreement | Mid-Kansas Electric Company LLC                                
Other Commitments                                
Original term                   10 years            
Automatic renewal term                   10 years            
[1] During the third and fourth quarters of 2015, we recognized an aggregate regulatory liability for the refund relating to the formula rate template modifications filing as described in Note 4, which resulted in a reduction in operating revenues and operating income of $9.5 million and an estimated $6.2 million reduction to net income for the year ended December 31, 2015.
[2] During the year ended December 31, 2015 and the fourth quarter of 2014, we recognized an aggregate estimated regulatory liability for the potential refunds relating to the ROE complaints as described in Note 16, which resulted in a reduction in operating revenues and operating income of $115.1 million and $46.9 million and an estimated $73.2 million and $28.9 million reduction to net income for the years ended December 31, 2015 and 2014, respectively.
[3] During the second quarter of 2014, we incurred a loss on extinguishment of debt of $29.2 million related to the tender of ITC Holdings Senior Notes as described in Note 8, which resulted in an estimated reduction to net income of $18.2 million.
[4] Refer to discussion of the estimated potential refund in Note 16 under “Rate of Return on Equity and Capital Structure Complaints.”