The basis for these rosy forecasts is expansion. ITC is buying access to markets, such as the recent purchase of Interstate Power and Light, a company that provides access to markets in Illinois, Iowa, Minnesota and Missouri. ITC plans to build two power lines of 180 miles each in Kansas. One will go into Nebraska. Another planned expansion project got curtailed when the Michigan Public Service Commission denied approval for a high-voltage transmission line between Ohio and Michigan. Problem was in the location of the lines. No word from the company how it will address this concern but most likely they'll get the line installed after a compromise is reached.

All of these projects required money. ITC sold stock and bonds to pay for them. It issued a little over 6 million shares at $50.15 and privately placed $385 million of senior notes with an interest rate of 6.05%, due in 10 years.

Other numbers: Market cap is $2.6 billion on 49.56 million shares. Return on equity was 13% last year with expectations of 11% this year, then 13% next year. Debt is 72% of capital. The annual dividend is $1.16 a share for a yield of 2.2%. Net profit margin is 17%.

Examine ITC more closely if you're looking for a utility that is also a growth story. Earnings have been solid for the last few years, with a downdraft in 2006 but a strong recovery in 2007 and positive projections for 2008 and 2009. The dividend isn't great but decent. The real story is management's commitment to grow the company. It's already proven it can delivery earnings. As long as regulations allow their expansion, this management knows how to make a decent return on equity, always a positive for investors.

- Company Web site: www.itc-holdings.com

- Ted Allrich