Gretchen Holloway - Director, IR Joseph Welch - Chairman, President and CEO Rejji Hayes - SVP, CFO and Treasurer

Steve Fleishman - Wolfe Research Charles Fishman - Morningstar Julien Dumoulin-Smith - UBS Securities, LLC Jonathan Arnold - Deutsche Bank

Good morning, everyone, and thank you for joining us for ITC’s 2014 fourth quarter and year-end earnings conference call. Joining me on today’s call are Joseph Welch, Chairman, President and CEO of ITC and Rejji Hayes, our Senior Vice President, CFO and Treasurer.

This morning, we issued a press release summarizing our results for the fourth quarter and for the year ended December 31, 2014. We expect to file our Form 10-K with the Securities and Exchange Commission today.

Before we begin, I would like to remind everyone aware of the cautionary language contained in the Safe Harbor statement. Certain statements made during today’s call that are not historical facts such as those regarding our future plans, objectives and expected performance reflects forward-looking statements under federal securities laws.

But we believe these statements are reasonable, they are subject to various risks and uncertainties and actual results may differ materially from our projections and expectations. These risks and uncertainties are discussed in our reports filed with the SEC such as our periodic reports on Forms 10-K and 10-Q and our other SEC filings.

You should consider these risk factors when evaluating our forward-looking statements. Our forward-looking statements represent our outlook only as of today and we disclaim any obligation to update these statements except as may be required by law.

A reconciliation of the non-GAAP financial measures discussed on today’s call is available on the Investor Relations page of our website. I will now turn the call over to Joe Welch.

Thank you, Gretchen, and good morning, everyone. 2014 was another successful year for ITC and we had many notable accomplishments.

We rolled out a robust five year plan in April of 2014, which identified $4.5 billion of capital investment from 2014 through 2018. As previously highlighted this plan will drive superior growth rates for the company while also delivering significant benefits for our customers.

In addition, this plan will generate approximately $1 billion of excess funding capacity which provides the company with increased financial flexibility to pursue incremental growth opportunities balance sheet management initiatives and value return alternatives. To summarize our progress today with respect to our five year plan, we have gotten off to an excellent start.

I am pleased to report that ITC delivered $794 million of capital investment in 2014 led by the completion of the Kansas V-Plan project at ITC Great Plains and continued progress on the Thumb-Loop project at ITCTransmission which is in the final stages of construction. In addition, to our operational achievements, we completed a $130 million of accelerated share repurchase program in December while preserving the strong credit quality of the business and broadening our excess to capital.

I would also be remiss if I did not mention that our operating revenues exceeded $1 billion for the first time in the history of the company which is a true testament to our commitment to growth. These accomplishments along with others have enabled us to achieve yet another year of double-digit annual operating earnings and dividend growth.

Needless to say we are pleased with our 2014 results, however, remain focused on producing a strong performance in the future and identifying new opportunities to grow such as the Lake Eire Connector and the New Covert projects which we highlighted in the last quarter. To that end on February 4, 2015 we announced a reorganization to provide more dedicated resources to our development efforts and regulated operating subsidiaries.

More specifically, given the scope of potential transmission development opportunities in the US and abroad, we have effectively split our development efforts between domestic regulated opportunities and merchant and or international opportunities. As a result, Daniel Oginsky has been appointed Executive Vice President of US Regulated Grid Development and will lead our efforts to secure growth opportunities through investment in regulated electric transmission infrastructure in the US.

Terry Harvill has been appointed Vice President of International and Merchant Development and will focus on driving ITC's growth internationally and domestically through merchant and other commercial development opportunities. As to our regulated operating subsidiaries, Linda Blair, ITC's Executive Vice President and Chief Business Unit Officer is now responsible for leading all aspects of the financial and operational performance of ITCTransmission, METC, ITC Midwest and ITC Great Plains in order to continue to drive top tier performance at our four operating companies.

In addition to these appointments, there were a number of managerial changes that support the overarching objectives of the reorganization. All of which will put us on a path to achieve our long-term, strategic and financial goals.

The performance of our operating systems remain top tier in 2014 and we are very proud of the consistent and reliable service we provide day in and day out which is a true reflection of our investment in the system and our focus on maintaining the grid. Safety performance was also very strong as evidenced by another year of reductions and recordable injuries [ph] which is noteworthy given that we had our highest number of labor hours in 2014.

In addition as noted earlier, in December, we placed the Kansas V-Plan project into service, an important milestone for our ITC Great Plains subsidiary and for the region. The completion of this project has established critical energy infrastructure that will ultimately improve electrical reliability enabled energy developers to tap into the grid and facilitate a competitive energy market.

Projects such as the V-Plan reinforcement, the value that ITC brings by providing much needed transmission investment that contributes to an efficient and reliable grid. In a similar vein, we are also closed to completing the largest project in ITC's history, the Thumb-Loop project located here in Michigan.

Earlier this month we installed the final structure and expect the project to be in service around mid-2015 consistent with the original schedule. This project will increase transmission capacity and reliability and enable the delivery of lower cost generation and provide more efficient transmission of energy.

As it pertains to our development initiatives, we were very active in 2014 focusing on investment, need to identify and the RTO planning processes and other non-traditional transmission investments. With respect to the RTO processes, we are participated in the PJM bidding window in the second half of 2014 and are close to finalizing our evaluation of opportunities in the 120 day window that commenced in November.

We are encouraged that PJM has provided opportunities to submit project proposals but it remains to be seen whether those processes will produce meaningful result for transmission developers in that region. In addition to our efforts in PJM, we continue to work with MISO, SPP and CAISO regions to identify opportunities to help build metered transmission infrastructure.

The process of implementing FERC's Order 1000 is a large effort that will likely take time to mature before FERC's policy goals and the order can be fulfilled. But we remain cautiously optimistic that opportunities in these RTOs will materialize overtime.

As for non-traditional transmission opportunities, we continue to advance various regulatory and operational requirements associated with the Lake Erie Connector project and had commenced the open solicitation process. Today, we are pleased with the interest we have received through our marketing efforts and we anticipate opening the non-binding solicitation process after we file the applications for the major permits in April.

As mentioned in the third quarter ITC has secured rights to build, own and operate the generator interconnection transmission facilities for Tenaska, New Covert plant up to PJM, which is on track to be placed in service in June of 2016. While this project is relatively small, we believe it provides a good framework and foundation for securing similar opportunities in the future.

Turning to regulatory matters. In October of last year, FERC issued an order setting the MISO regional base ROE rate for hearing and settlements procedures.

All dismissing elements of the complaint related to capital structure and certain ROE incentive adders. The hearing procedures are now underway with the actual hearing scheduled to be held in the week of August 17, 2015 and the judge’s initial decision is due to be issued by November 30, 2015.

A final decision from the commission is not expected before mid-2016. However I should note that there is no stipulated period for FERC to issue a final decision.

Also on the February 12, 2015 an additional complaint was filed seeking a reduction to the MISO regional base ROE rate effective February 12, 2015 due to the lapse of the 15 month window under the initial complaint we are not surprised that the second complaint was filed. In addition to these developments in November 2014, the MISO Transmission Owners Group including METC and ITC Midwest filed for approval to use the 50 basis point RTO participation adder.

The authority to implement this adder was granted by FERC effective January 6, 2015 subject to the overall ROE being capped by the high end of the zone of reasonableness [ph]. Furthermore last month ITC Midwest filed with FERC for the 100 basis point independence adder which is aligned with the independent ROE adder previously awarded to ITC Transmission, METC and ITC Great Plains, a decision by FERC is anticipated in March or 60 days after the initial application filing.

Consistent with the approval of the RTO adder we expected if approved the independence adder will capped by the high end of the zone of reasonableness. Overall, we continue to expect a constructive outcome on the matters given one, first mandate by Congress for Section 219 of the Federal Power Act of 2005 to provide incentive for transmission investment and two, the underlying support that FERC highlighted around transmission investment in this decision in the ISO New England ROE case and three, FERC [ph] decision on the RTO adder in MISO.

Once again I think all of these activities speak to our achievement in 2014 and really position the company nicely as we look to build on these colors of success in 2015. Overall we remain very optimistic about the evolving transmission landscape and are committed to delivering on our five year plan which provides significant benefits to our customers and superior returns to our investors.

I will now turn the call over to Rejji for financial update.

Thanks Joe and good morning everyone. 2014 was another solid year for ITC in terms of financial performance.

Reported net income for the full year was $244.1 million or $1.54 per diluted share compared to $233.5 million or $1.47 per diluted share for 2013. For the fourth quarter, ITC reported net income of $46.7 million or $0.30 per diluted share as compared to reported net income of $76.9 million or $0.48 per diluted share for the fourth quarter of 2013.

It is worth highlighting that our reported results include the impact of a refund liability associated with the MISO regional base ROE rate from November 2013 through December 31, 2014. This refund obligation was booked as we believe it is probable that a refund will be required for the initial refund period which lapsed on February 11, 2015.

As such in the fourth quarter of 2014, we recorded an after tax refund liability of $28.9 million which represents a pretax reduction of revenues and operating income of $46.9 million and an increase in interest expense of $0.9 million based on estimated refund amounts associated with the complaint for the initial refund period from November 12, 2013 through December 31, 2014. It is also possible that upon the ultimate resolution of this matter we may be required to make refunds related to the initial refund period beyond what has been recorded as of December 31, 2014.

We will continue to assess this matter and I will provide updates in our subsequent filings as necessary. Operating earnings for the year ended December 30, 2013 were $292 million or $1.85 per diluted share which was within our guidance range compared to $258.6 million or $1.63 per diluted share for the same period last year.

Operating earnings for the fourth quarter of 2014 were $75.9 million or $0.48 per diluted share compared to $70 million or $0.44 per diluted share for the fourth quarter of 2013. Operating earnings are reported on a basis consistent with how we provided our guidance for the year and the following items listed on an after tax basis.

First, they exclude the lingering effects from the Entergy transaction including $0.1 million expense for the fourth quarter of 2014 and an increase in net income of $7.1 million or $0.04 per share for the fourth quarter of 2013 due primarily to the recognition of tax benefits for Entergy costs upon the termination of the merger in the fourth quarter of 2013 that were previously deemed. Full year 2014 expenses totaled $0.7 million or a penny per diluted share compared to $24.8 million or $0.16 per diluted share for 2013.

Second, they exclude expense associated with certain acquisition accounting adjustments for ITC Midwest, ITCTransmission and METC that resulted from the FERC audit order on ITC Midwest in May, 2012. The impact of this item totaled approximately $0.1 million for fourth quarter 2013 and approximately $0.1 million and $0.3 million for the year ended December 31, 2014 and 2013 respectively.

Third, they exclude expenses associated with the cash tender offer and consent solicitation transaction for select bonds at ITC Holdings that we completed in the second quarter. The impact of this item totaled $0.2 million for the fourth quarter of 2014 and $18.2 million or $0.12 per diluted share for the year ended December 31, 2014.

Lastly, they exclude the impacts of the aforementioned refund liability associated with the MISO regional base ROE rate from November 2013 through December 31, 2014 which totaled $28.9 million or $0.18 per diluted share for the fourth quarter of 2014 and year ended December 31, 2014. Operating earnings for 2014 increased approximately 14% or $0.22 per share over the prior year, primarily due to higher income associated with increased rate base at our operating companies partially offset by higher non-recoverable expenses associated with development initiatives in the second half of the year.

Joe touched on this activity in his prepared remarks and I’ll reiterate that we remain committed to pursuing growth opportunities that will position the company to deliver long-term value for our customers and investors. For the year ended December 31, 2014, we invested $794 million in capital projects at our operating companies which is also in our forecasted range including $252.3 million at ITCTransmission, a $126.4 million at METC, $286.3 million at ITC Midwest, a $128.5 million at ITC Great Plains and $0.5 million of development associated with the aforementioned New Covert project.

Our capital investments continue to serve as a key driver of our growth and we’re pleased to have another strong year of execution on this front. Turning now to a discussion about our financing liquidity initiatives, 2014 was another busy year from a financing perspective.

In November, we closed the $150 million first mortgage bond financing for ITC Great Plains which was rated A1A by Moody’s and S&P respectively. The bonds were priced at 4.16% and the proceeds were used to repay the $100 million borrowed under the ITC Great Plains term loan and for general corporate purposes including the payment of borrowings under the ITC Great Plains revolving credit facility.

In December, we also closed a $150 million first mortgage bond for METC which priced at 4.19%. The proceeds were used to pay down a $50 million first mortgage bond with a coupon of 6.63% that matured in December as well as a $50 million term loan and amount outstanding under METC’s revolving credit agreement.

With respect to other balance sheet related activities in December we completed the accelerated share repurchase program that we initiated in June of 2014. The program called for minimum share repurchase of a $130 million and up to maximum of $150 million of shares at the agents discretion.

In total, we ended up repurchasing $130 million of shares or approximately $3.6 million shares at a volume weighted average price of $36.56 per share. Given that our Board of Directors authorized up to $250 million of share repurchases through the end of 2015, we still have the authorization to repurchase a $120 million of shares and we'll continue to be opportunistic on this front.

From a liquidity perspective as of December 31, 2014, we have a total liquidity of approximately $715 million which consists of approximately $28 million of cash on hand and approximately $687 million of net undrawn capacity on our revolving credit facilities. For the year ended December 31, 2014, we reported operating cash flow of approximately $502 million which represented an increase of approximately $53 million or 12% year-over-year.

Turning to more specifics on our regional investments. In 2014, we made excellent progress on these projects.

As Joe discussed the Kansas V-Plan project is now in service and the Thumb-Loop project is on schedule to be placed in service by mid-2015. With respect to ITC's portions of the 4 MVP projects that remain on track due to the considerable efforts made by our project teams.

Our MVP project number 3, ITC has started the design and recent [ph] acquisition activities for the approximately 75 mile segment of the project that resides in Minnesota and we anticipate beginning construction on that portion of the project in late 2015. The remainder of MVP 3 which resides in Iowa is in the final stages of recent acquisition and is progressing through the regulatory process.

The full project schedule remains on target for completion in mid-2017. For MVP project number 4 construction activities are underway for two 12 mile segments with expected completion dates in 2015 for both segments.

We also anticipate an order from the Iowa Utility board in mid-2015 relating to the siting and franchising of a 28 mile segment of the line. It is also worth noting that we are in the process of navigating the regulatory approvals for the final 55 mile segment of the project.

Assuming favorable decisions from the Iowa Utility Board segments of the project remain on schedule to be place into service from 2015 through 2018. Lastly, MVP projects 5 and 7 which have longer lead times remain on track and are anticipated to go into service in 2020.

Turning to our outlook for 2015. We are reaffirming our operating EPS guidance of $2 to $2.15 per share and our aggregate capital investment guidance for the year of $710 million to $810 million which includes a $170 million to $200 million for ITC transmission a $150 million to $170 million for METC, $380 million to $405 million for ITC Midwest, $10 million to $25 million for ITC Great Plains and up to $10 million of development.

In conclusion we had another strong year and continue to advance our five year plan. We are excited for the prospects of 2015 holds as we execute on our strategic initiatives to invest and achieve top tier system performance at our existing systems while also expanding the company through growth opportunities.

At this time, I'd like to open the call to answer questions from the investment community.

Yeah thanks. Good morning.

Hi Steve.

I guess couple questions, first on the reserve that you took for the MISO refund. What base - what did you use for the assumption of what the ROE is to concert that reserve.

Steve due to ongoing litigation at this time we don't intend to provide any of the underlying assumptions.

Okay. And what is your anticipation of kind a how this plays out in 2015 because the other MISO transmission companies all took reserves within their guidance for 2015.

So are you different for some reasons in terms of how this plays out or I just not exactly sure I understand.

Sure I'll start and if Joe wants to weigh in you can certainly do so. At this point I think it's too difficult to tell ultimately what the prospective ROE will be associated with the MISO TO 6 complaint and so we decided to book a recognition for refund liability over the course of 2014 because we think at this point is probable and estimable to determine what the ROE refund liability will be over that timeframe but 2015 as we see it at this point remains to be seen we are still in the nascent stages of the hearing process and at the end of the day when we think about operating earnings we want to make sure that we represent the fundamental earnings part of the business and until we have a run rate ROE that's determined by FERC at this point it's too premature to tell where '15 will stand.

Okay, so just until will that be likely when the ALJ comes out that would set kind of judgment on this or just…

I mean there reality is there are variety of milestones throughout the procedural schedules as I am sure you're aware so the ALJ’s decision will be a data point what submitted is part of the hearing process will be a data point and at the end of the day FERC can decide to agree with ALJ or they can go their own way which they certainly did in the case of New England so again where we sit today it's too difficult to tell where the ROE will end up and so as we think about how it will impact our earnings guidance how it will impact our fundamental earnings power we are going to continue to assess that on a quarterly basis and when we think we have a reasonable estimate for what it maybe we'll decide at that point what we will do.

Okay, one other question related to this. Just can you give us a sense based on maybe it's too early for this but the Lake Eire project in terms of potential sizing of it with the latest information that you have?

Yeah, at this point as you know we have not offered up any real guidance on the actual size of the project again we're still in the early stages of development and given the fact that it's a merchant project I mean our goal is try to minimize the capital investments and additional cost associated with the project as best we can. So I think what I can offer up in terms of guidance and we said this in the past is that if you are going to run align submarine for 60 miles then potentially subterranean or six to 10 miles basically running through a large body of water there is a probably a minimum threshold cost that you have that is a pretty material number so it still remains quite large but at this point we are not going to disclose what we think estimated size is.

Okay, thank you very much.

You're welcome.

Good morning. Joe just I want to make sure I am on the same page when you say international as far as reorganization and marketing is that something more than just going a few miles in Ontario which the Eire Connector would do or is there more to this?

Well I think that the way I look at it and the way I have approached to with the team go simply like this that I have now with the since we generated the financial strength that we have in the company and we have a commitment to grow that I have told to bring to me anything that they find and I will go as deep internationally as we think it is reasonable and then at that point once they've brought a project in or a brought system in to look at we will then start to evaluate whether it is something that ITC wants to participate in. Up until not too long ago I have been very close to the vest on keeping everything as conservative in the companies I could because we had a lot of things to do and skillsets that we need to build and candidly financial strength.

I think we are at a point now where we can open up our risk profiles and having said that I have opened up the prism by which I will evaluate projects and I have said that bring them to me and then we'll evaluate it in my office and I'll make that decision whether I want to take it to the board to go further on it but we've open the breach up quite a bit.

Okay. And when so when you say merchant like on the Lake Eire Connector, a small piece of that could be uncontracted provided the contracted amount gives you a minimum return is that a way to look at it.

The way we look at it is again we're going to look at that project on a risk adjusted basis and if there is piece that's uncontracted we would have to see where we're at on the contracted basis and then make the decision whether we wanted to go forward with that. We're going to well I will said I am going to evaluate everything broad forward is still with the conservative eye on whether we're going to be able to achieve the growth that we want to do for our shareholders and do it in a way that make sense for them.

Okay, good luck on that project. Thank you.

Thank you

Hi good morning. Can you hear me?

Good morning Julien, good morning.

Excellent. So I wanted to first ask about the CapEx profile as you think about it.

Specifically SPP and also MISO have updated their views on CapEx suppress a little bit lack thereof. Can you comment how you feel about your own CapEx budget perhaps the fundability is into that spend some of that moving pieces within it just given the updates we have.

Sure I mean at this point Julien we still feel very good about the guidance we offered for 2015. So as I highlighted the range of $710 million to $810 million and we feel very good about hitting those numbers at this time.

If you're alluding to the development related prospects I mean as you know we didn't ascribe a great deal of capital investment opportunities associated with development in 2015. So we still feel about the range of up to $10 million and that's largely attributable the way in which the RTO competitive solicitation processes have rolled out to date.

So we're cautiously optimistic that opportunities will materialize overtime for the RTOs and therefore the development related capital investments will increase once we get beyond '15, but at this point we feel again very good about our growth prospects and capital investment opportunities in '15 and that's why we forecast 710 to 810.

Great. But perhaps let me clarify, to the extent which that these nominations of projects today drive CapEx in subsequent years.

Can you comment about your broader multi-year view on CapEx at all?

At this point we still feel good about the five year plan that we've rolled out last April. So we still feel very good about the $4.5 billion.

We've been very transparent about the fact that but the reality is or to 1000 is not in the near term is not been as robust as we would have like. And that's certainly part of the reason why we try to very proactively expand and diversify our development pipeline as evidenced by the Lake Eire project, the work we're doing on New Covert and other opportunities that Joe highlighted to really again expand the development portfolio.

So at this point we still feel good about $4.5 billion. We're going to execute on it and I'd be remiss if I didn't mentioned that as we've highlighted before, 75% of that $4.5 billion is going to drive double-digit EPS growth.

And so we feel again very good about the plan and our ability to execute on it and we're we've been very transparent about what the economic impact of the plan will be.

Great and then let me ask Lake Eire. When you think about that within the context to the multi-year plan.

How should we think about that there is an incremental or is that part of the puzzle itself to hit that number and somewhat fungible with other projects?

Yeah so. We've talked about this a bit in the past and Lake Eire at the end of the day when we put together this $4.5 billion capital plan and rolled that out in April of last year.

We obviously didn't assume Lake Eire would be part of that plan. We actually I think signed the contract to take over the rights in the developer in June of last year.

So it was obviously after we rolled out the plan. And so it wasn't part of our initial pre-supposition going into the $1.1 billion, but at this point we do view it as a potential offset or hedge in the event some of the Order 1000 opportunities do not materialize in time.

So we feel like because of the expansion and diversification of our development efforts that we will ultimately be able to hit the $1.1 billion and whether it's Lake Eire is a component of that whether it’s a mix of Lake Eire Order 1000 or New Covert again we feel very good about our ability to hit that number.

Great and let me clarify with Lake Eire. Obviously you're going in discussions with the potential offtakers now.

how are the initial conversations going and perhaps if you can clarify a little bit what are your expectations in terms of the offtakers are as far as the initial conversations have been add.

Sure. So far so good.

We began the marketing process in November of last year and it started to have preliminary discussions with perspective offtakers in the Ontario regions as well as within PJM. And at this point we think we've had a very good deal of appetite at this point.

I think where we as we open the formal what I'll call non-binding open solicitation, we'll see where we end up and so it's too premature to tell at this point whether we can sell all of the capacity in the line but my - we will de-risk that project as much as we can so that it's - so that we can efficiently finance it and appropriate balance risk reward. So at this point it's too premature to tell.

We're will end up but we feel good about the interest we've received to-date and we continue to work very harder than project in are certainly moving forward on the permits and the regulatory work.

But just to make sure I heard you right, you said you would pursue the project to close partially contracting?

No, no, I said if I have my brothers we will de-risk this as much as possible and therefore sell as much capacity in the line as we can. As Joe mentioned earlier a sliver of it is not contracted in the long-term and is essentially based on the equivalent of an auction, we’ll contemplate that but it’s going to be a function of the contracts we put in place with offtakers and so that perfect world we’d love to sell a 100% of capacity in line but we’ll see what the interest looks like and evaluate this overtime.

Sorry one last question here, with the repurchase just if you can elaborate the 130 versus the 150 why the 130 if you will?

Yeah so the structure we put in place with the agent was that at a minimum they would repurchase a $130 million but at their discretion they could increase it by another $20 million to a $150 million and it was solely the agent’s discretion. It was a function of where the volume weighted average price was overtime and so that’s a better question for the agent but I think as if you look at the stock price performance over the course of 2014 we’re up like 30% and so obviously to repurchasing share as the higher the price is obviously you’re not going to want to put repurchase bar so I think just given how the stock perform over the course of 2014 that’s probably why the agent chose to the low end of that as oppose to essentially exercising the equivalent of a green shoe.

Thanks again for all your patience.

Thank you.

Can you hear me guys?

Sure can.

Clear, good morning.

Just quickly on so on Joe you said a couple of times and I think you said before that you’re kind of expectations on ROE is to be capped to the high end of the - under the effects of the new methodology I'm just curious whether that’s essentially what you’ve assumed in your reserve or is that more of a kind of a forward looking expectation of how those set returns on the board look?

Yeah so at this point, Jonathan this is Rejji at this point as we highlighted due to ongoing litigation we’re not going to disclose the underlying assumptions but as you probably know we were granted the incentive adders for METC and ITC Midwest effective January 6th of this year and so we’ve been essentially granted the 50 basis points adder. Because we estimated the liability to reflect the period starting November 2013 and going up to late December of 2014 we haven’t presuppose the inclusion of any of those RTO adders granted after the date so we essentially assumed our existing rate construct as it sits for December 31, 2014 going back to November of 2013 and then assume some level based ROE tradition.

Is that helpful?

Adder, the independence adder, could you just share with us what based on under your request if you got what you asked for when would that be effective?

In the first portion of your question was cut off but I think I heard the gist.

The independence adder when would it be effective if you got where you’re asked for?

So it would either be, so the formal request was submitted at the end of January for the independence adder ITC Midwest and I think based on for precedent it could be within 60 days it’s all going to be a function of FERC ultimately declares and so I think at the earliest you would assume that that would potentially be granted in March.

Right. Okay.

And then I realized you say you don’t want to talk about specifics about ROE but looking at the size of reserve looking at the period of time that it applies to which I believe is 13 months and the rate base I mean it looks like it’s somewhere just north of in the low 100 basis points prior to 120 type as that - but is there something we should do differently in trying to back into struggling or...?

Yeah needless to say I’ll neither confirm - the underlying assumptions so feel free to triangulate and do it as you see it, what you’ll see though on an offer up is in the 10-K that we’ll file later today after market close we did provide a range in our disclosure note that basically shows what the range about comps could be for the reserve based on information available at this time so you’ll get additional clarity in the 10-K but again we are not going to get into what the underlying ROE assumptions are.

Okay. And just one final thing on the non-recoverable operating cost I think from memory you have talked those being about 25 million a year is that still the right number to use that is starting to broaden into other types of development areas could that be higher how should we think about it?

Yeah, it's a great question I think historically we will try to have a pretty robust non-recoverable expenses budget or development budget specifically I think for competitor purposes we are not going to get into explicit guidance on what those amounts will be but I think you know just given our ambitions on the development side given the fact that we got more dedicated resources that will be focused on development you know you can expect that we will probably be looking to have a pretty healthy budget associated with development now what I will say is that we spend those dollars and we think about that analogous to R&D and so if we are going to spend or allocate more dollars to development we expect offsetting upside in the form of future capital investments so, hopefully that's helpful guidance.

It is. And any update when you might thinking what's the sort of right timing that we should anticipate you might update your financial plan and to hold an analyst meeting.

Yeah, so I guess you are asking when we will do another sort of another roll out of five year plan equivalent to what we did last April. I think it remains to be seeing I think we will have to look at where the development opportunities where the growth opportunities come over the next say 12 to 18 months and if we have meaningful new information to share above and beyond the plan that we initially launched we will probably offer up another vintage at this point we are on execution load and we are going to be focused on executed on the 14 to 18 plan that we have disclosed and again once we feel like we have meaningful information to share whether it is on the growth whether it is on the ROE side at that point we will roll it out but no sooner than that.

Okay, thanks a lot.

Thank you Jonathan.

Thank you.

Thank you. This concludes the question-and-answer portion of our call.

Anyone wishing to hear the conference call replay available through March 3rd 2015 can access the call by dialing 855-859-2056 toll free or 404-537-3406 the passcode of 809-46-022. The webcast of this event will also be archived on the ITC website at itc-holdings.com.

Thanks, everyone, and have a great day.