NOVI – ITC Holdings Corp. Tuesday announced its new five-year capital investment plan that calls for the nation’s largest independent electric transmission company to spend about $4.5 billion through 2018.
ITC expects to investment of about $2.2 billion in base operating companies, approximately $1.2 billion in regional infrastructure projects, and approximately $1.1 billion in additional development projects.
Successful execution of this capital investment plan is projected to increase ITC’s consolidated year-end rate base plus construction work in progress by approximately 70 percent over the plan period, from approximately $4.5 billion at the end of 2013 to approximately $7.6 billion at the end of 2018. This increase in projected rate base plus construction work in progress is expected to result in compound annual growth in operating earnings per share in the range of 11 to 13 percent over the forecast period. The company also expects to grow its dividend annually in the range of 10 to 15 percent over the same time frame.
The company also announced its board of directors has authorized up to $250 million in share repurchases through December 31, 2015 as part of its broader capital allocation plan.
“ITC’s new five-year capital investment plan is premised on achieving and maintaining operational excellence at all of our existing operating companies, as well as continuing our leadership role in the development and advancement of critical new regional infrastructure,” said Joseph L. Welch, chairman, president and CEO of ITC. “These investments in our business are a core component of our balanced capital allocation strategy and reflect our commitment to reinvesting in the business to drive long-term value for both our customers and shareholders.”
“Our capital allocation strategy also emphasizes maintaining a strong balance sheet and credit ratings and finding opportunities to efficiently return capital to shareholders,” Welch continued. “The scale that we have achieved in our business over the past several years affords us the opportunity to capitalize on transmission investment opportunities while also allowing us to preserve significant financial flexibility and optimize total shareholder returns through our dividend policy and the share repurchase program we are announcing today.”
Share repurchases under the authorized program will be exercised from time to time through December 31, 2015, at prices ITC deems appropriate subject to various factors, including its capital position and market conditions. The share repurchases may be effected through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans, and may be suspended at any time.
