v3.26.1
DEBT
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
DEBT
6.    DEBT
Fixed Rate Debt
The following notes and bonds were issued during the three months ended March 31, 2026:
(In millions of USD)Principal AmountInterest RateIssuance DateMaturity Date
METC Senior Secured Notes, Series A (a)$125 (c)5.08 %01/14/202601/14/2036
METC Senior Secured Notes, Series B (a)125 (c)5.71 %01/14/202601/14/2046
ITCTransmission First Mortgage Bonds, Series M (b)175 (d)4.78 %03/12/202603/12/2034
ITC Midwest First Mortgage Bonds, Series O (b)175 (d)4.86 %03/12/202603/12/2035
Total$600 
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(a)The METC Senior Secured Notes were issued under METC’s first mortgage indenture and are secured by a first mortgage lien on substantially all of its real property and tangible personal property.
(b)The ITCTransmission and ITC Midwest First Mortgage Bonds were issued under the First Mortgage and Deed of Trust of ITCTransmission and ITC Midwest, respectively, and each are secured by a first mortgage lien on substantially all of the real property and tangible personal property of each respective entity.
(c)The net proceeds from the offering of the METC Senior Secured Notes were used to repay existing indebtedness under the revolving credit agreement and intercompany loan agreement, to partially fund capital expenditures and for general corporate purposes.
(d)The net proceeds from the offering of the ITCTransmission and ITC Midwest First Mortgage Bonds were used to repay existing indebtedness under the revolving credit agreement, to partially fund capital expenditures and for general corporate purposes.
On April 1, 2026, ITC Holdings completed a debt issuance of Senior Notes totaling $900 million, which included $500 million aggregate principal amount of unsecured 4.875% Senior Notes, due April 15, 2031 and $400 million aggregate principal amount of unsecured 5.50% Senior Notes, due April 15, 2036. The 4.875% and 5.50% Senior Notes are redeemable prior to March 15, 2031 and January 15, 2036, respectively, in whole or in part and at the option of ITC Holdings, by paying an applicable make whole premium. The net proceeds from this offering, after discount and costs related to the issuance, will be used to fund the repayment of $400 million aggregate principal amount of ITC Holdings’ 3.25% Senior Notes due June 30, 2026, to repay indebtedness outstanding under the commercial paper program and for general corporate purposes. The 4.875% and 5.50% Senior Notes were issued under ITC Holdings’ indenture, dated April 18, 2013, between ITC Holdings and Computershare Trust Company, N.A., as successor to Wells Fargo Bank, National Association, as trustee, as supplemented from time to time, including by the Ninth Supplemental Indenture, dated as of April 1, 2026.
Commercial Paper
ITC Holdings has an ongoing commercial paper program for the issuance and sale of unsecured commercial paper. The Company’s revolving credit agreement may be used to repay commercial paper issued pursuant to the commercial paper program. At March 31, 2026, we had the following commercial paper, net of discount:
(In millions of USD)Program SizeIssued and Outstanding (a)Weighted Average Interest Rate on Outstanding BalanceWeighted Average Remaining Days to Maturity
Commercial Paper$400 $381 4.07 %2
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(a) Included within debt maturing within one year on the condensed consolidated statements of financial position.
Revolving Credit Agreement
At March 31, 2026, we had the following unguaranteed, unsecured revolving credit facility available and outstanding:
(In millions of USD)Total
Available
Capacity (a)		Outstanding
Balance (b)		Unused
Capacity		Weighted Average
Interest Rate on
Outstanding Balance (c)		Commitment
Fee Rate (d)
ITC Holdings$400 $— $400 — %0.175 %
ITCTransmission200 35 165 4.71 %0.100 %
METC125 27 98 4.71 %0.100 %
ITC Midwest200 45 155 4.71 %0.100 %
ITC Great Plains75 13 62 4.71 %0.100 %
Total$1,000 $120 $880 
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(a)Individual sublimits may be adjusted, subject to certain individual sublimits and the aggregate limit under the revolving credit agreement not to exceed $1 billion.
(b)Included within long-term debt on the condensed consolidated statements of financial position.
(c)Interest charged on borrowings depends on the variable rate structure we elect at the time of each borrowing.
(d)Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating.
Derivative Instruments and Hedging Activities
We use derivative financial instruments to manage our exposure to fluctuations in interest rates. Our risk management strategy includes the use of interest rate derivatives to mitigate variability in forecasted interest payments associated with anticipated debt issuances at ITC Holdings. These derivatives are designated as cash flow hedges and qualify for hedge accounting treatment.
In advance of planned debt issuances, we may enter into interest rate derivatives with future effective dates. Depending on market conditions and financing timing, certain derivatives may be settled prior to the issuance of the related debt, while others remain outstanding until their effective dates.
Derivative financial instruments designated as cash flow hedges that were settled during the three months ended March 31, 2026:
(In millions of USD)Notional AmountWeighted Average Fixed RatePre-Tax Gain on Derivatives (b)Hedged Period
(In years)		Effective Date
Interest rate swaps (a)$705 3.52 %$4 5Q2 2026 / Q3 2027
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(a)On March 23, 2026, we terminated interest rate swap contracts in connection with the pricing of $900 million of ITC Holdings’ Senior Notes, as discussed above.
(b)The gains on these derivatives were recorded net of tax in AOCI and are being amortized as a component of interest expense over the first five years of interest payments on the related debt which represent the hedged forecasted cash flows. See Note 9 for additional information.
Derivative financial instruments that were outstanding at March 31, 2026:
(In millions of USD)Notional AmountWeighted Average Fixed RateHedged Period
(In years)		Effective Date
Interest rate swaps (a)$100 3.54 %5Q3 2027
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(a)Interest rate swap contracts are designated as cash flow hedges of the first five years of forecasted interest payments associated with an anticipated debt issuance. See Note 8 for information on the fair value of these derivatives.