1317630--3/16/2006--ITC_Holdings

related topics

{debt, indebtedness, cash}

{system, service, information}

{operation, natural, condition}

{stock, price, share}

{provision, law, control}

{stock, price, operating}

{condition, economic, financial}

{capital, credit, financial}

{tax, income, asset}

{cost, regulation, environmental}

{acquisition, growth, future}

{competitive, industry, competition}

{regulation, change, law}

{regulation, government, change}

{gas, price, oil}

{cost, contract, operation}

s cost recovery through rates can be challenged which could result in lowered rates and have an adverse effect on our business, financial condition and results of operations. The regulations to which we are subject may limit our ability to raise capital and/or pursue acquisition or development opportunities or other transactions. Changes in federal energy laws, regulations or policies could impact cash flows and could reduce the dividends we may be able to pay our stockholders. If the network load on ITC s transmission system is lower than expected, our revenues would be reduced. s operating results fluctuate on a seasonal and quarterly basis. depends on Detroit Edison, its primary customer, for a substantial portion of its revenues, and any material failure by Detroit Edison to make payments for transmission services would adversely affect our revenues and our ability to service ITC s and our debt obligations. Deregulation and/or increased competition may adversely affect ITC s customers, or Detroit Edison s customers, which in turn may reduce our revenues. Hazards associated with high-voltage electricity transmission may result in suspension of ITC s operations or the imposition of civil or criminal penalties. is subject to environmental regulations and to laws that can give rise to substantial liabilities from environmental contamination. Acts of war, terrorist attacks and threats or the escalation of military activity in response to such attacks or otherwise may negatively affect our business, financial condition and results of operations. Risks Related to Our Capital Structure and Leverage Because we are controlled by the IT Holdings Partnership, the ability of stockholders of ITC Holdings, other than the IT Holdings Partnership, to influence our management and policies will be severely limited. We are highly leveraged and our dependence on debt may limit our ability to pay dividends and/or obtain additional financing. Adverse changes in our credit ratings may negatively affect us. s actual capital expenditures may be lower than planned, which would decrease ITC s expected rate base and therefore our revenues. Certain provisions in our debt instruments limit our capital flexibility. Our ability to raise capital may be restricted which may, in turn, restrict our ability to make capital expenditures or dividend payments to our stockholders. We are a controlled company within the meaning of the New York Stock Exchange rules and, as a result, qualify for and rely on exemptions from certain corporate governance requirements. Future transactions may limit our ability to use our net operating loss carryforwards. We may not be able to pay dividends, and the reduction or elimination of dividends would negatively affect the market price of our common stock. Provisions in the Articles of Incorporation and bylaws of ITC Holdings and Michigan corporate law may prevent efforts by our stockholders to change the direction or management of our company. Provisions of the Articles of Incorporation of ITC Holdings restrict market participants from voting or owning 5% or more of the outstanding shares of capital stock of ITC Holdings.

Full 10-K form ▸

1317630--3/16/2006--ITC_Holdings_Corp.