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ITC ITC

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2021May 05, 2021
Entity Information [Line Items]
Document Type10-Q
Document Transition Reportfalse
Entity File Number001-32576
Entity Registrant NameITC HOLDINGS CORP.
Entity Incorporation, State or Country CodeMI
Entity Tax Identification Number32-0058047
Entity Address, Address Line One27175 Energy Way
Entity Address, City or TownNovi
Entity Address, State or ProvinceMI
Entity Address, Postal Zip Code48377
City Area Code248
Local Phone Number946-3000
Entity Current Reporting StatusNo
Entity Interactive Data CurrentYes
Entity Central Index Key0001317630
Current Fiscal Year End Date--12-31
Document Period End DateMar. 31,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ1
Entity Common Stock, Shares Outstandingtrue
Amendment Flagfalse
Entity Filer CategoryNon-accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding224,203,112

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Current assets
Cash and cash equivalents $ 3 $ 4
Accounts receivable120 114
Inventory41 42
Regulatory assets40 52
Prepaid and other current assets18 12
Total current assets222 224
Property, plant and equipment (net of accumulated depreciation and amortization of $2,093 and $2,055, respectively)9,491 9,327
Other assets
Goodwill950 950
Intangible assets (net of accumulated amortization of $46 and $46, respectively)29 29
Regulatory assets244 212
Other assets78 83
Other Assets1,301
Assets, Excluding Property, Plant, and Equipment, Noncurrent1,274
TOTAL ASSETS11,014 10,825
Current liabilities
Accounts payable114 130
Accrued compensation45 55
Accrued interest69 55
Accrued taxes52 61
Regulatory liabilities20 14
Refundable deposits and advances for construction39 37
Debt maturing within one year180 67
Other current liabilities22 18
Total current liabilities541 437
Accrued pension and postretirement liabilities60 59
Deferred Income Taxes and Other Liabilities, Noncurrent1,048 1,013
Regulatory liabilities606 612
Refundable deposits57 65
Other liabilities35 50
Long-term debt6,330 6,295
Commitments and contingent liabilities (Notes 4 and 11)
Liabilities8,677 8,531
STOCKHOLDER’S EQUITY
Common stock, without par value, 235,000,000 shares authorized, 224,203,112 shares issued and outstanding at March 31, 2021 and December 31, 2020892 892
Retained earnings1,452 1,410
Accumulated other comprehensive loss(7)(8)
Total stockholder’s equity2,337 2,294
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 11,014 $ 10,825

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED) (Parentheticals) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Property, plant and equipment, accumulated depreciation and amortization $ 2,093 $ 2,055
Intangible assets, accumulated amortization $ 46 $ 46
Common stock, without par value $ 0 $ 0
Common stock, shares authorized235,000,000 235,000,000
Common stock, shares issued224,203,112 224,203,112
Common stock, shares outstanding224,203,112 224,203,112

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Document Fiscal Year Focus2021
OPERATING REVENUES
Transmission and other services $ 299 $ 289
Formula Rate true-up37 33
Total operating revenues336 322
OPERATING EXPENSES
Operation and maintenance22 27
General and administrative35 31
Depreciation and amortization57 54
Taxes other than income taxes35 31
OPERATING INCOME187 179
OTHER EXPENSES (INCOME)
Interest expense, net62 59
Allowance for equity funds used during construction(7)(6)
Other (income) and expenses, net1 (2)
Total other expenses (income)(54)(55)
INCOME BEFORE INCOME TAXES133 124
INCOME TAX PROVISION33 32
NET INCOME100 92
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax1 (16)
Total other comprehensive income, net of tax1 (16)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent $ 101 $ 76

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
NET INCOME $ 100 $ 92
OTHER COMPREHENSIVE INCOME
Derivative instruments, net of tax (Note 11)1 (16)
TOTAL COMPREHENSIVE INCOME101 76
Operation and maintenance22 27
Taxes other than income taxes35 31
Total operating expenses149 143
Depreciation and amortization57 54
General and administrative35 31
Operating Income (Loss) $ 187 $ 179

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY (UNAUDITED) - USD ($) $ in MillionsTotalCommon Stock [Member]Retained Earnings [Member]AOCI Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent $ 2,232 $ 892 $ 1,333 $ 7
NET INCOME92 92
Dividends to ITC Investment Holdings Inc.(82)(82)
Total other comprehensive income (loss), net of tax(16)(16)
Revenues322
Transmission and other services289
Formula Rate true-up33
Operation and maintenance27
General and administrative31
Depreciation and amortization54
Operating Income (Loss)179
Interest expense, net59
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity(6)
Other Nonoperating Income (Expense)2
Nonoperating Income (Expense)55
INCOME TAX PROVISION32
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax(16)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent76
Taxes other than income taxes31
Income before income taxes124
Stockholders' Equity Attributable to Parent2,226 892 1,343 (9)
Stockholders' Equity Attributable to Parent2,294 892 1,410 (8)
NET INCOME100 100
Dividends to ITC Investment Holdings Inc.(58)58
Total other comprehensive income (loss), net of tax1 1
Revenues336
Transmission and other services299
Formula Rate true-up37
Operation and maintenance22
General and administrative35
Depreciation and amortization57
Operating Income (Loss)187
Interest expense, net62
Public Utilities, Allowance for Funds Used During Construction, Capitalized Cost of Equity(7)
Other Nonoperating Income (Expense)(1)
Nonoperating Income (Expense)54
INCOME TAX PROVISION33
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax1
Comprehensive Income (Loss), Net of Tax, Attributable to Parent101
Taxes other than income taxes35
Income before income taxes133
Stockholders' Equity Attributable to Parent $ 2,337 $ 892 $ 1,452 $ (7)

CONDENSED CONSOLIDATED STATEM_6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Document Fiscal Year Focus2021
CASH FLOWS FROM OPERATING ACTIVITIES
NET INCOME $ 100,000,000 $ 92,000,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense57,000,000 54,000,000
Recognition, refund and collection of revenue accruals and deferrals — including accrued interest(26,000,000)(43,000,000)
Deferred income tax expense33,000,000 35,000,000
Allowance for equity funds used during construction(7,000,000)(6,000,000)
Employee Benefits and Share-based Compensation7,000,000 4,000,000
Other1,000,000 5,000,000
Changes in assets and liabilities, exclusive of changes shown separately:
Accounts receivable(6,000,000)8,000,000
Accrued compensation(8,000,000)(17,000,000)
Accrued interest13,000,000 9,000,000
Accrued taxes(9,000,000)(14,000,000)
Other current and non-current assets and liabilities, net(17,000,000)(19,000,000)
Net cash provided by operating activities142,000,000 108,000,000
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for property, plant and equipment(239,000,000)(190,000,000)
Other2,000,000 2,000,000
Net cash used in investing activities(237,000,000)(188,000,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under revolving credit agreements263,000,000 363,000,000
Proceeds from Other Debt0 275,000,000
Net issuance (repayment) of commercial paper113,000,000 (168,000,000)
Repayments of revolving credit agreements(229,000,000)(310,000,000)
Dividends to ITC Investment Holdings Inc.(58,000,000)(82,000,000)
Other5,000,000 4,000,000
Net cash provided by financing activities94,000,000 82,000,000
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH(1,000,000)2,000,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period6,000,000 6,000,000
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period5,000,000 8,000,000
Increase (Decrease) in Accounts Payable(4,000,000)0
Estimated Refund Related to Return on Equity Complaint $ 8,000,000 $ 0

GENERAL

GENERAL3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERALGENERAL ITC Holdings and its subsidiaries are engaged in the transmission of electricity in the United States. ITC Holdings is a wholly-owned subsidiary of ITC Investment Holdings. Fortis owns a majority indirect equity interest in ITC Investment Holdings, with GIC holding an indirect equity interest of 19.9%. Through our Regulated Operating Subsidiaries, we own, operate, maintain and invest in high-voltage electric transmission systems in Michigan’s Lower Peninsula and portions of Iowa, Minnesota, Illinois, Missouri, Kansas and Oklahoma that transmit electricity from generating stations to local distribution facilities connected to our transmission systems. Basis of Presentation These condensed consolidated interim financial statements should be read in conjunction with the notes to the consolidated financial statements as of and for the year ended December 31, 2020 included in ITC Holdings’ annual report on Form 10-K for such period. The accompanying condensed consolidated interim financial statements have been prepared using GAAP and with the instructions to Form 10-Q and Rule 10-01 of SEC Regulation S-X as they apply to interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These accounting principles require us to use estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The condensed consolidated interim financial statements are unaudited but, in our opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim period. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year. Recent Developments Regarding the COVID-19 Pandemic In March 2020, the World Health Organization declared COVID-19 a pandemic. Efforts to control the outbreak of COVID-19 have resulted in impacts to businesses and facilities in various industries around the world, such as operating restrictions and closures, and disruptions to the global economy and supply chains. The COVID-19 pandemic has and will continue to impact our customers throughout our operating footprint. To date, COVID-19 has not had a material impact on our net income. However, for 2020, beginning in April, we implemented various temporary cost saving measures related to operating expenses, including operation and maintenance expenses and general and administrative expenses, in an attempt to reduce costs for our customers that were collected through our Formula Rates. The duration and cumulative impact on our operations from COVID-19 is unknown at this time and will ultimately depend on the duration and severity of the pandemic, the length of time that the various business restrictions are in effect, the impact of resurgences of COVID-19 cases and deaths in the United States, and the efficacy and distribution of COVID-19 vaccines. We are continuing to monitor developments involving our workforce, customers and suppliers and cannot predict whether COVID-19 will have a material impact on our consolidated results of operations, cash flows or financial condition. We are also monitoring the evolving situation and guidance from federal, state and local public health authorities. We are taking steps to mitigate the potential risks to us and our employees posed by COVID-19, including enabling remote work arrangements for employees when appropriate, and are following government requirements to reduce the transmission of COVID-19.

REVENUE

REVENUE3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
REVENUEREVENUE Our total revenues are comprised of revenues which arise from three classifications including transmission services, other services, and Formula Rate true-up. As other services revenue is immaterial, it is presented in combination with transmission services on the condensed consolidated statements of comprehensive income. Transmission Services Through our Regulated Operating Subsidiaries, we generate nearly all our revenue from providing electric transmission services over our transmission systems. As independent transmission companies, our transmission services are provided and revenues are received based on our tariffs, as approved by the FERC. The transmission revenue requirements at our Regulated Operating Subsidiaries are set annually using Formula Rates and remain in effect for a one-year period. By updating the inputs to the formula and resulting rates on an annual basis, the revenues at our Regulated Operating Subsidiaries reflect changing operational data and financial performance, including the amount of network load on their transmission systems (for our MISO Regulated Operating Subsidiaries), operating expenses and additions to property, plant and equipment when placed in service, among other items. We recognize revenue for transmission services over time as transmission services are provided to customers (generally using an output measure of progress based on transmission load delivered). Customers simultaneously receive and consume the benefits provided by the Regulated Operating Subsidiaries’ services. We recognize revenue in the amount to which we have the right to invoice because we have a right to consideration in an amount that corresponds directly with the value to the customer of performance completed to date. As billing agents, MISO and SPP independently bill our customers on a monthly basis and collects fees for the use of our transmission systems. No component of the transaction price is allocated to unsatisfied performance obligations. Transmission service revenue includes an estimate for unbilled revenues from service that has been provided but not billed by the end of an accounting period. Unbilled revenues are dependent upon a number of factors that require management’s judgment including estimates of transmission network load (for the MISO Regulated Operating Subsidiaries) and preliminary information provided by billing agents. Due to the seasonal fluctuations of actual load, the unbilled revenue amount generally increases during the spring and summer and decreases during the fall and winter. See Note 3 for information on changes in unbilled accounts receivable. Other Services Other services revenue consists of rental revenues, easement revenues, and amounts from providing ancillary services. A portion of other services revenue is treated as a revenue credit and reduces gross revenue requirement when calculating net revenue requirement under our Formula Rates. Total other services revenue for the three months ended March 31, 2021 and 2020 were $1 million. Formula Rate True-Up The true-up mechanism under our Formula Rates is considered an alternative revenue program of a rate-regulated utility given it permits our Regulated Operating Subsidiaries to adjust future rates in response to past activities or completed events in order to collect our actual revenue requirements under our Formula Rates. In accordance with our accounting policy, only the current year origination of the true-up is reported as a Formula Rate true-up. See “Cost-Based Formula Rates with True-Up Mechanism” in Note 4 for more information on our Formula Rates.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE3 Months Ended
Mar. 31, 2021
Receivables [Abstract]
ACCOUNTS RECEIVABLEACCOUNTS RECEIVABLE The following table presents the components of accounts receivable on the condensed consolidated statements of financial position: March 31, December 31, (In millions of USD) 2021 2020 Trade accounts receivable $ 3 $ 2 Unbilled accounts receivable 106 102 Other 11 10 Total accounts receivable $ 120 $ 114

REGULATORY MATTERS

REGULATORY MATTERS3 Months Ended
Mar. 31, 2021
Regulated Operations [Abstract]
REGULATORY MATTERSREGULATORY MATTERS Cost-Based Formula Rates with True-Up Mechanism The transmission revenue requirements at our Regulated Operating Subsidiaries are set annually using Formula Rates and remain in effect for a one-year period. By updating the inputs to the formula and resulting rates on an annual basis, the revenues at our Regulated Operating Subsidiaries reflect changing operational data and financial performance, including the amount of network load on their transmission systems (for our MISO Regulated Operating Subsidiaries), operating expenses and additions to property, plant and equipment when placed in service, among other items. The formula used to derive the rates does not require further action or FERC filings each year, although the formula inputs remain subject to legal challenge at the FERC. Our Regulated Operating Subsidiaries will continue to use the formula to calculate their respective annual revenue requirements unless the FERC determines the resulting rates to be unjust and unreasonable and another mechanism is determined by the FERC to be just and reasonable. See “Rate of Return on Equity Complaints” in Note 11 for detail on ROE matters for our MISO Regulated Operating Subsidiaries and “Incentive Adders for Transmission Rates” discussed herein. The cost-based Formula Rates at our Regulated Operating Subsidiaries include a true-up mechanism that compares the actual revenue requirements of our Regulated Operating Subsidiaries to their billed revenues for each year to determine any over- or under-collection of revenue requirements. Revenue is recognized for services provided during each reporting period based on actual revenue requirements calculated using the formula. Our Regulated Operating Subsidiaries accrue or defer revenues to the extent that the actual revenue requirement for the reporting period is higher or lower, respectively, than the amounts billed relating to that reporting period. The amount of accrued or deferred revenues is reflected in future revenue requirements and thus flows through to customer bills within two years under the provisions of our Formula Rates. The net changes in regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, were as follows during the three months ended March 31, 2021: (In millions of USD) Total Net regulatory assets as of December 31, 2020 $ 50 Net collection of 2019 revenue deferrals and accruals, including accrued interest (11) Net revenue accrual for the three months ended March 31, 2021 37 Net regulatory assets as of March 31, 2021 $ 76 Regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, are recorded in the condensed consolidated statements of financial position as follows: March 31, December 31, (In millions of USD) 2021 2020 Current regulatory assets $ 37 $ 44 Non-current regulatory assets 53 19 Current regulatory liabilities (4) (1) Non-current regulatory liabilities (10) (12) Net regulatory assets $ 76 $ 50 Incentive Adders for Transmission Rates The FERC has authorized the use of ROE incentives, or adders, that can be applied to the rates of TOs when certain conditions are met. Our MISO Regulated Operating Subsidiaries and ITC Great Plains utilize ROE adders related to independent transmission ownership and RTO participation. MISO Regulated Operating Subsidiaries On April 20, 2018, Consumers Energy, IP&L, Midwest Municipal Transmission Group, Missouri River Energy Services, Southern Minnesota Municipal Power Agency and WPPI Energy filed a complaint with the FERC under section 206 of the FPA, challenging the adders for independent transmission ownership that are included in transmission rates charged by the MISO Regulated Operating Subsidiaries. The adders for independent transmission ownership allowed up to 50 basis points or 100 basis points to be added to the MISO Regulated Operating Subsidiaries’ authorized ROE, subject to any ROE cap established by the FERC. On October 18, 2018, the FERC issued an order granting the complaint in part, setting revised adders for independent transmission ownership for each of the MISO Regulated Operating Subsidiaries to 25 basis points, and requiring the MISO Regulated Operating Subsidiaries to include the revised adders, effective April 20, 2018, in their Formula Rates. On September 11, 2019, the MISO Regulated Operating Subsidiaries filed an appeal of the FERC’s order in the D.C. Circuit Court and on February 19, 2021, the appeal was denied. As a result, the FERC’s October 18, 2018 order was upheld without further impact on our financial condition, consolidated results of operations or cash flows. For the three months ended March 31, 2021 and 2020, the authorized incentive adders for the MISO Regulated Operating Subsidiaries included a 25 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation. See Note 11 for information regarding the MISO ROE Complaints and the associated impact to the base ROE of our MISO Regulated Operating Subsidiaries. ITC Great Plains On June 11, 2019, KCC filed a complaint with the FERC under section 206 of the FPA, challenging the adder for independent transmission ownership that is included in the transmission rate charged by ITC Great Plains. The adder for independent transmission ownership allowed up to 100 basis points to be added to the ITC Great Plains authorized ROE, subject to any ROE cap established by the FERC. On July 16, 2020, the FERC issued an order granting the complaint, setting the revised adder for independent transmission ownership for ITC Great Plains to 25 basis points, and requiring ITC Great Plains to include the revised adder, effective June 11, 2019, in their Formula Rate. In addition, the order directed ITC Great Plains to provide refunds, with interest, for the period from June 11, 2019 through July 16, 2020. During the fourth quarter of 2020, refunds of $4 million were made to settle the refund liability. ITC Great Plains filed appeals in the D.C. Circuit Court for the various FERC orders in the proceedings for ITC Great Plains. On March 4, 2021, these appeals were dismissed following a motion for voluntary dismissal by ITC Great Plains in response to the denial of the appeal of the FERC’s order to reduce the adder for independent transmission ownership for each of the MISO Regulated Operating Subsidiaries. The dismissal of the appeals did not result in additional impacts to our consolidated results of operations, cash flows or financial condition. For the three months ended March 31, 2020, the authorized ROE used by ITC Great Plains was 12.16% and was composed of a base ROE of 10.66% with a 100 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation. For the three months ended March 31, 2021, the authorized ROE used by ITC Great Plains was 11.41% and was composed of a base ROE of 10.66% with a 25 basis point adder for independent transmission ownership and a 50 basis point adder for RTO participation. Rate of Return on Equity Complaints See “Rate of Return on Equity Complaints” in Note 11 for a discussion of the MISO ROE Complaints.
Schedule of Regulatory Assets and LiabilitiesRegulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, are recorded in the condensed consolidated statements of financial position as follows: March 31, December 31, (In millions of USD) 2021 2020 Current regulatory assets $ 37 $ 44 Non-current regulatory assets 53 19 Current regulatory liabilities (4) (1) Non-current regulatory liabilities (10) (12) Net regulatory assets $ 76 $ 50

DEBT

DEBT3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
DEBTDEBT ITC Holdings Commercial Paper Program ITC Holdings has an ongoing commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate amount not to exceed $400 million outstanding at any one time. Borrowings under ITC Holdings’ $400 million revolving credit facility may be used to repay the notes under the commercial paper program, if necessary. As of March 31, 2021, ITC Holdings had $180 million of commercial paper issued and outstanding under the program, with a weighted-average interest rate of 0.3% and weighted-average remaining days to maturity of 40 days. The amount outstanding as of March 31, 2021 was classified as debt maturing within one year in the condensed consolidated statements of financial position. As of December 31, 2020 ITC Holdings had $67 million of commercial paper issued and outstanding. Derivative Instruments and Hedging Activities We may use derivative financial instruments, including interest rate swap contracts, to manage our exposure to fluctuations in interest rates. The use of these financial instruments mitigates exposure to these risks and the variability of our operating results. We are not a party to leveraged derivatives and do not enter into derivative financial instruments for trading or speculative purposes. At March 31, 2021 and December 31, 2020, ITC Holdings did not have any interest rate swaps outstanding. Revolving Credit Agreements At March 31, 2021, ITC Holdings and certain of its Regulated Operating Subsidiaries had the following unsecured revolving credit facilities available: (In millions of USD, except percentages) Total Outstanding Unused Weighted Average Commitment ITC Holdings $ 400 $ — $ 400 (d) —% 0.175 % ITC Transmission 100 56 44 1.1% 0.10 % METC 100 52 48 1.1% 0.10 % ITC Midwest 225 93 132 1.1% 0.10 % ITC Great Plains 75 31 44 1.1% 0.10 % Total $ 900 $ 232 $ 668 ____________________________ (a) Included within long-term debt in the condensed consolidated statements of financial position. (b) Interest charged on borrowings depends on the variable rate structure we elected at the time of each borrowing. (c) Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating. (d) ITC Holdings’ revolving credit agreement may be used for general corporate purposes, including to repay commercial paper issued pursuant to the commercial paper program described above, if necessary. While outstanding commercial paper does not reduce available capacity under ITC Holdings’ revolving credit agreement, the unused capacity under this agreement adjusted for the commercial paper outstanding was $220 million as of March 31, 2021.

RETIREMENT BENEFITS AND ASSETS

RETIREMENT BENEFITS AND ASSETS HELD IN TRUST3 Months Ended
Mar. 31, 2021
Retirement Benefits [Abstract]
Pension and Other Postretirement Benefits DisclosureRETIREMENT BENEFITS AND ASSETS HELD IN TRUST Pension Plan Benefits We have a qualified defined benefit pension plan (the “retirement plan”) for eligible employees, comprised of a traditional final average pay plan and a cash balance plan. The traditional final average pay plan is noncontributory, covers select employees, and provides retirement benefits based on years of benefit service, average final compensation and age at retirement. The cash balance plan is also noncontributory, covers substantially all employees and provides retirement benefits based on eligible compensation and interest credits. Our funding practice for the retirement plan is generally to fund the annual net pension cost, though we may contribute additional amounts as necessary to meet the minimum funding requirements of the Employee Retirement Income Security Act of 1974 or as we deem appropriate. We expect to contribute $4 million to the retirement plan in 2021. We also have two supplemental nonqualified, noncontributory, defined benefit pension plans for selected management employees (the “supplemental benefit plans” and, collectively with the retirement plan, the “pension plans”). The supplemental benefit plans provide for benefits that supplement those provided by the retirement plan. We expect to contribute $3 million to the supplemental benefit plans in 2021. Net periodic benefit cost for the pension plans, by component, was as follows: Three months ended March 31, (In millions of USD) 2021 2020 Service cost $ 2 $ 2 Interest cost 1 1 Expected return on plan assets (1) (1) Net pension cost $ 2 $ 2 The components of net pension cost other than the service cost component are included in Other (income) and expenses, net in the condensed consolidated statements of comprehensive income. Other Postretirement Benefits We provide certain postretirement health care, dental and life insurance benefits for eligible employees. We expect to contribute $8 million to the postretirement benefit plan in 2021. Net postretirement benefit plan cost, by component, was as follows: Three months ended March 31, (In millions of USD) 2021 2020 Service cost $ 2 $ 3 Interest cost 1 1 Expected return on plan assets (1) (1) Net postretirement cost $ 2 $ 3 The components of net postretirement cost other than the service cost component are included in Other (income) and expenses, net in the condensed consolidated statements of comprehensive income. Defined Contribution Plan We also sponsor a defined contribution retirement savings plan. Participation in this plan is available to substantially all employees. We match employee contributions up to certain predefined limits based upon eligible compensation and the employee’s contribution rate. The cost of this plan was $3 million for each of the three months ended March 31, 2021 and 2020.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTSFAIR VALUE MEASUREMENTS The measurement of fair value is based on a three-tier hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. For the three months ended March 31, 2021 and the year ended December 31, 2020, there were no transfers between levels. Our assets are measured at fair value subject to the three-tier hierarchy at March 31, 2021, were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant (In millions of USD) (Level 1) (Level 2) (Level 3) Financial assets measured on a recurring basis: Mutual funds — fixed income securities $ 51 $ — $ — Mutual funds — equity securities 10 — — Total $ 61 $ — $ — Our assets measured at fair value subject to the three-tier hierarchy at December 31, 2020, were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant (In millions of USD) (Level 1) (Level 2) (Level 3) Financial assets measured on a recurring basis: Cash equivalents $ 1 $ — $ — Mutual funds — fixed income securities 52 — — Mutual funds — equity securities 10 — — Total $ 63 $ — $ — As of March 31, 2021 and December 31, 2020, we held certain assets that are required to be measured at fair value on a recurring basis. The assets included in the table consist of investments recorded within cash and cash equivalents and other long-term assets, including investments held in a trust associated with our supplemental benefit plans described in Note 6. The mutual funds we own are publicly traded and are recorded at fair value based on observable trades for identical securities in an active market. Changes in the observed trading prices and liquidity of money market funds are monitored as additional support for determining fair value. Gains and losses for all mutual fund investments are recorded in earnings. We also held non-financial assets that are required to be measured at fair value on a non-recurring basis. These consist of goodwill and intangible assets. We did not record any impairment charges on long-lived assets and no other significant events occurred requiring non-financial assets and liabilities to be measured at fair value (subsequent to initial recognition) during the three months ended March 31, 2021 and 2020. Fair Value of Financial Assets and Liabilities Fixed Rate Debt Based on the borrowing rates obtained from third party lending institutions currently available for bank loans with similar terms and average maturities from active markets, the fair value of our consolidated long-term debt and debt maturing within one year, excluding revolving credit agreements and commercial paper, was $6,709 million and $7,119 million at March 31, 2021 and December 31, 2020, respectively. These fair values represent Level 2 under the three-tier hierarchy described above. The total book value of our consolidated long-term debt and debt maturing within one year, net of discount and deferred financing fees and excluding revolving credit agreements and commercial paper, was $6,098 million and $6,097 million at March 31, 2021 and December 31, 2020, respectively. Revolving Credit Agreements At March 31, 2021 and December 31, 2020, we had a consolidated total of $232 million and $198 million, respectively, outstanding under our revolving credit agreements, which are variable rate loans. The fair value of these loans approximates book value based on the borrowing rates currently available for variable rate loans obtained from third party lending institutions. These fair values represent Level 2 under the three-tier hierarchy described above. Other Financial Instruments The carrying value of other financial instruments included in current assets and current liabilities, including cash and cash equivalents, special deposits and commercial paper, approximates their fair value due to the short-term nature of these instruments.

STOCKHOLDER'S EQUITY

STOCKHOLDER'S EQUITY3 Months Ended
Mar. 31, 2021
Equity [Abstract]
STOCKHOLDER'S EQUITYSTOCKHOLDER'S EQUITY Accumulated Other Comprehensive Income (Loss) The following table provides the components of changes in AOCI: Three months ended March 31, (In millions of USD) 2021 2020 Balance at the beginning of period $ (8) $ 7 Derivative instruments Reclassification of net loss relating to interest rate cash flow hedges from AOCI to earnings (net of tax of less than $1 for the three months ended March 31, 2021) (a) 1 — Loss on interest rate swaps relating to interest rate cash flow hedges (net of tax of $7 for the three months ended March 31, 2020) — (16) Total other comprehensive income (loss), net of tax 1 (16) Balance at the end of period $ (7) $ (9) ____________________________ (a) The reclassification of the net loss relating to interest rate cash flow hedges is reported in interest expense on a pre-tax basis. The amount of net loss relating to interest rate cash flow hedges to be reclassified from AOCI to earnings for the 12-month period ending March 31, 2022 is expected to be approximately $4 million (net of tax of $2 million). The reclassification is reported in Interest expense, net in the condensed consolidated statements of comprehensive income on a pre-tax basis.

SHARE-BASED COMPENSATION AND EM

SHARE-BASED COMPENSATION AND EMPLOYEE SHARE PURCHASE PLAN3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION AND EMPLOYEE SHARE PURCHASE PLANSHARE-BASED COMPENSATION Long-Term Incentive Plans In the first quarter of 2021, 281,516 PBUs and 221,433 SBUs were granted pursuant to our long-term incentive plans. Generally, each PBU and SBU granted is valued based on one share of Fortis common stock traded on the Toronto Stock Exchange, converted to U.S. dollars and settled only in cash. However, SBUs granted to the executives may settle in cash, 100% Fortis common stock, or 50% cash and 50% Fortis common stock depending on executives’ settlement elections and whether certain share ownership requirements are met. The awards are classified as liability awards and vest on the date specified in a particular grant agreement, provided the service and performance criteria, as applicable, are satisfied. The PBUs and SBUs earn dividend equivalents which are also re-measured and settled consistent with the target award at the end of the vesting period. The granted awards and related dividend equivalents have no shareholder rights. The aggregate fair value of all outstanding PBUs and SBUs as of March 31, 2021 was $54 million and $29 million, respectively. At March 31, 2021, the total unrecognized compensation cost related to the PBUs and SBUs was $26 million and $16 million, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS3 Months Ended
Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions DisclosureRELATED PARTY TRANSACTIONS Intercompany Receivables and Payables ITC Holdings may incur charges from Fortis and other subsidiaries of Fortis that are not subsidiaries of ITC Holdings for general corporate expenses incurred. In addition, ITC Holdings may perform additional services for, or receive additional services from, Fortis and such subsidiaries. These transactions are in the normal course of business and payments for these services are settled through accounts receivable and accounts payable, as necessary. We had intercompany receivables from Fortis and such subsidiaries of $1 million and less than $1 million at March 31, 2021 and December 31, 2020, respectively, and intercompany payables to Fortis and such subsidiaries of less than $1 million at March 31, 2021 and December 31, 2020. Related party charges for corporate expenses from Fortis and such subsidiaries are recorded in general and administrative expenses in the condensed consolidated statements of comprehensive income. Such expense for each of the three months ended March 31, 2021 and 2020 for ITC Holdings was $3 million. Related party billings for services to Fortis and other subsidiaries, recorded as an offset to general and administrative expenses for ITC Holdings, were $1 million for each of the three months ended March 31, 2021 and 2020. Dividends During the three months ended March 31, 2021 and 2020, we paid dividends of $58 million and $82 million, respectively, to ITC Investment Holdings. We also paid dividends of $57 million to ITC Investment Holdings in April 2021. Transfer of Membership Interests In February 2021, we transferred our membership interests in certain wholly-owned development entities to our parent company, ITC Investment Holdings. The transfer was accounted for at book value as a non-reciprocal transfer of value. There was no gain or loss recognized on the transfer. The transfer did not have a material impact on our consolidated results of operations, cash flows or financial condition .

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIESCOMMITMENTS AND CONTINGENT LIABILITIES Environmental Matters We are subject to federal, state and local environmental laws and regulations, which impose limitations on the discharge of pollutants into the environment, establish standards for the management, treatment, storage, transportation and disposal of solid and hazardous wastes and hazardous materials, and impose obligations to investigate and remediate contamination in certain circumstances. Liabilities relating to investigation and remediation of contamination, as well as other liabilities concerning hazardous materials or contamination, such as claims for personal injury or property damage, may arise at many locations, including formerly owned or operated properties and sites where wastes have been treated or disposed of, as well as properties currently owned or operated by us. Such liabilities may arise even where the contamination does not result from noncompliance with applicable environmental laws. Under some environmental laws, such liabilities may also be joint and several, meaning that a party can be held responsible for more than its share of the liability involved, or even the entire share. Although environmental requirements generally have become more stringent and compliance with those requirements more expensive, we are not aware of any specific developments that would increase our costs for such compliance in a manner that would be expected to have a material adverse effect on our results of operations, financial condition or liquidity. Our assets and operations also involve the use of materials classified as hazardous, toxic or otherwise dangerous. Many of the properties that we own or operate have been used for many years and include older facilities and equipment that may be more likely than newer ones to contain or be made from such materials. Some of these properties include aboveground or underground storage tanks and associated piping. Some of them also include large electrical equipment filled with mineral oil, which may contain or previously have contained PCBs. Some of our facilities and electrical equipment may also contain asbestos containment materials. Our facilities and equipment are often situated on or near property owned by others so that, if they are the source of contamination, others’ property may be affected. For example, aboveground and underground transmission lines sometimes traverse properties that we do not own and transmission assets that we own or operate are sometimes commingled at our transmission stations with distribution assets owned or operated by our transmission customers. Some properties in which we have an ownership interest or at which we operate are, or are suspected of being, affected by environmental contamination. We are not aware of any pending or threatened claims against us with respect to environmental contamination relating to these properties, or of any investigation or remediation of contamination at these properties, that entail costs likely to materially affect us. Some facilities and properties are located near environmentally sensitive areas such as wetlands. Litigation We are involved in certain legal proceedings before various courts, governmental agencies and mediation panels concerning matters arising in the ordinary course of business. These proceedings include certain contract disputes, eminent domain and vegetation management activities, regulatory matters and pending judicial matters. We cannot predict the final disposition of such proceedings. We regularly review legal matters and record provisions for claims that are considered probable of loss. Rate of Return on Equity Complaints Two complaints were filed with the FERC by combinations of consumer advocates, consumer groups, municipal parties and other parties challenging the base ROE in MISO. The complaints were filed with the FERC under Section 206 of the FPA requesting that the FERC find the MISO regional base ROE rate (the “base ROE”) for all MISO TO’s, including our MISO Regulated Operating Subsidiaries, to no longer be just and reasonable. Initial Complaint On November 12, 2013, the Association of Businesses Advocating Tariff Equity, Coalition of MISO Transmission Customers, Illinois Industrial Energy Consumers, Indiana Industrial Energy Consumers, Inc., Minnesota Large Industrial Group and Wisconsin Industrial Energy Group (collectively, the “complainants”) filed the Initial Complaint with the FERC. The complainants sought a FERC order to reduce the base ROE used in the formula transmission rates for our MISO Regulated Operating Subsidiaries to 9.15%, reducing the equity component of our capital structure and terminating the ROE adders approved for certain Regulated Operating Subsidiaries. The FERC set the base ROE for hearing and settlement procedures, while denying all other aspects of the Initial Complaint. The ROE collected through the MISO Regulated Operating Subsidiaries’ rates during the period November 12, 2013 through September 27, 2016 consisted of a base ROE of 12.38% plus applicable incentive adders. On September 28, 2016, the FERC issued the September 2016 Order that set the base ROE at 10.32%, with a maximum ROE of 11.35%, effective for the period from November 12, 2013 through February 11, 2015 based on a two-step DCF methodology adopted in previous complaint matters for other utilities. The September 2016 Order required our MISO Regulated Operating Subsidiaries to provide refunds, including interest, which were completed in 2017. Additionally, the base ROE established by the September 2016 Order was to be used prospectively from the date of that order until a new approved base ROE was established by the FERC. On October 28, 2016, the MISO TOs, including our MISO Regulated Operating Subsidiaries, filed a request with the FERC for rehearing of the September 2016 Order regarding the short-term growth projections in the two-step DCF analysis. Additional impacts to the base ROE for the period of the Initial Complaint and the related accrued refund liabilities resulted from the November 2019 Order and May 2020 Order issued by the FERC, as discussed below. Second Complaint On February 12, 2015, the Second Complaint was filed with the FERC by Arkansas Electric Cooperative Corporation, Mississippi Delta Energy Agency, Clarksdale Public Utilities Commission, Public Service Commission of Yazoo City and Hoosier Energy Rural Electric Cooperative, Inc., seeking a FERC order to reduce the base ROE used in the formula transmission rates of our MISO Regulated Operating Subsidiaries to 8.67%, with an effective date of February 12, 2015. On June 30, 2016, the presiding ALJ issued an initial decision that recommended a base ROE of 9.70% for the refund period from February 12, 2015 through May 11, 2016, with a maximum ROE of 10.68%, which also would be applicable going forward from the date of a final FERC order. The Second Complaint was dismissed as a result of the November 2019 Order and the dismissal of the complaint was reaffirmed in the May 2020 Order, as discussed below. November 2019 Order On November 21, 2019, the FERC issued an order in the MISO ROE Complaints which applied a methodology to the Initial Complaint period that used two financial models to determine the base ROE. The FERC determined that the base ROE for the Initial Complaint should be 9.88% and the top of the range of reasonableness for that period should be 12.24% and that this base ROE should apply during the first refund period of November 12, 2013 to February 11, 2015 and from the date of the September 2016 Order prospectively. In the November 2019 Order, the FERC also dismissed the Second Complaint. Therefore, based on the November 2019 Order, for the Second Complaint refund period from February 12, 2015 to May 11, 2016, no refund is due. As a result, in 2019, we reversed the aggregate estimated current liability we had previously recorded for the Second Complaint. In addition, for the period from May 12, 2016 to September 27, 2016, no refund is due because no complaint had been filed for that period. The FERC ordered refunds to be made in accordance with the November 2019 Order. The MISO TOs, including our MISO Regulated Operating Subsidiaries, and several other parties filed requests for rehearing of the November 2019 Order, primarily on the basis that the methodology applied by the FERC in the November 2019 Order does not allow the MISO TOs to earn a reasonable rate of return on their investment, as required by precedent. On January 21, 2020, the FERC issued an order granting rehearing of the November 2019 Order for further consideration. May 2020 Order On May 21, 2020, the FERC issued an order on rehearing of the November 2019 Order. In this order, the FERC revised its November 2019 Order methodology, finding that three financial models should be used to determine the base ROE, among other revisions. By applying the new methodology, FERC determined that the base ROE for the Initial Complaint should be 10.02% and the top of the range of reasonableness for that period should be 12.62%. The FERC determined that this base ROE should apply during the first refund period of November 12, 2013 to February 11, 2015 and from the date of the September 2016 Order prospectively. The FERC ordered refunds to be made in accordance with the May 2020 Order by December 23, 2020, and on October 8, 2020, the FERC granted an extension to September 23, 2021. In the May 2020 Order, the FERC also reaffirmed its decision to dismiss the Second Complaint and its finding that no refunds would be ordered on the Second Complaint. Our MISO Regulated Operating Subsidiaries are parties to multiple appeals of the September 2016 Order, November 2019 Order and May 2020 Order at the D.C. Circuit Court. Financial Statement Impacts As of March 31, 2021 and December 31, 2020, we had recorded an aggregate current regulatory asset of $3 million and $8 million, respectively, and a current regulatory liability of $16 million and $13 million, respectively, in the condensed consolidated statements of financial position. These impacts reflect amounts owed from or due to customers under the terms outlined in the May 2020 Order and the November 2019 Order on the Initial Complaint and the periods subsequent to the September 2016 Order. During the three months ended March 31, 2021, we received $8 million owed from customers related to this ROE matter and during the three months ended March 31, 2020, we refunded $2 million due to customers related to this ROE matter. Although the November 2019 Order and May 2020 Order dismissed the Second Complaint with no refunds required, it is possible upon appeal that our MISO Regulated Operating Subsidiaries could be required to provide material refunds related to the Second Complaint. As of December 31, 2018, we had recorded an estimated regulatory liability of $151 million for the Second Complaint which was reversed following the November 2019 Order. Our MISO Regulated Operating Subsidiaries currently record revenues at the base ROE of 10.02% established in the May 2020 Order plus applicable incentive adders. See Note 4 for a summary of incentive adders for transmission rates. The recognition of the obligations associated with the MISO ROE Complaints resulted in the following impacts to the condensed consolidated statements of comprehensive income: Three months ended March 31, (In millions of USD) 2021 2020 Interest expense increase $ — $ 1 Estimated net income reduction — (1) As of March 31, 2021, our MISO Regulated Operating Subsidiaries had a total of approximately $5 billion of equity in their collective capital structures for ratemaking purposes. Based on this level of aggregate equity, we estimate that each 10 basis point change in the authorized ROE would impact annual consolidated net income by approximately $5 million.

SUPPLEMENTAL FINANCIAL INFORMAT

SUPPLEMENTAL FINANCIAL INFORMATION3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL FINANCIAL INFORMATIONSUPPLEMENTAL FINANCIAL INFORMATION Reconciliation of Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated statements of financial position that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: March 31, December 31, (In millions of USD) 2021 2020 2020 2019 Cash and cash equivalents $ 3 $ 6 $ 4 $ 4 Restricted cash included in: Other non-current assets 2 2 2 2 Total cash, cash equivalents and restricted cash $ 5 $ 8 $ 6 $ 6 Restricted cash included in other non-current assets primarily represents cash on deposit to pay for vegetation management, land easements and land purchases for the purpose of transmission line construction. Supplementary Cash Flows Information Three months ended March 31, (In millions of USD) 2021 2020 Supplementary cash flows information: Interest paid (net of interest capitalized) $ 44 $ 49 Supplementary non-cash investing and financing activities: Additions to property, plant and equipment and other long-lived assets (a) 111 88 Allowance for equity funds used during construction 7 6 ____________________________ (a) Amounts consist of current and accrued liabilities for construction, labor, materials and other costs that have not been included in investing activities. These amounts have not been paid for as of March 31, 2021 or 2020, respectively, but will be or have been included as a cash outflow from investing activities for expenditures for property, plant and equipment when paid.

SEGMENT INFORMATION

SEGMENT INFORMATION3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
SEGMENT INFORMATIONSEGMENT INFORMATION We identify reportable segments based on the criteria set forth by the FASB regarding disclosures about segments of an enterprise, including the regulatory environment of our subsidiaries and the business activities performed to earn revenues and incur expenses. The following tables show our financial information by reportable segment: Three months ended OPERATING REVENUES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 346 $ 331 Intercompany eliminations (10) (9) Total Operating Revenues $ 336 $ 322 Three months ended INCOME (LOSS) BEFORE INCOME TAXES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 171 $ 157 ITC Holdings and other (38) (33) Total Income Before Income Taxes $ 133 $ 124 Three months ended NET INCOME: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 126 $ 116 ITC Holdings and other 100 92 Intercompany eliminations (126) (116) Total Net Income $ 100 $ 92 TOTAL ASSETS: March 31, December 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 10,900 $ 10,710 ITC Holdings and other 5,935 5,830 Reconciliations / Intercompany eliminations (a) (5,821) (5,715) Total Assets $ 11,014 $ 10,825 ____________________________ (a) Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in our condensed consolidated statements of financial position.

GENERAL (Policies)

GENERAL (Policies)3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of PresentationBasis of Presentation These condensed consolidated interim financial statements should be read in conjunction with the notes to the consolidated financial statements as of and for the year ended December 31, 2020 included in ITC Holdings’ annual report on Form 10-K for such period. The accompanying condensed consolidated interim financial statements have been prepared using GAAP and with the instructions to Form 10-Q and Rule 10-01 of SEC Regulation S-X as they apply to interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. These accounting principles require us to use estimates and assumptions that impact the reported amounts of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The condensed consolidated interim financial statements are unaudited but, in our opinion, include all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the results for the interim period. The interim financial results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year.

REVENUE (Policies)

REVENUE (Policies)3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]
Revenue Recognition, PolicyTransmission Services Through our Regulated Operating Subsidiaries, we generate nearly all our revenue from providing electric transmission services over our transmission systems. As independent transmission companies, our transmission services are provided and revenues are received based on our tariffs, as approved by the FERC. The transmission revenue requirements at our Regulated Operating Subsidiaries are set annually using Formula Rates and remain in effect for a one-year period. By updating the inputs to the formula and resulting rates on an annual basis, the revenues at our Regulated Operating Subsidiaries reflect changing operational data and financial performance, including the amount of network load on their transmission systems (for our MISO Regulated Operating Subsidiaries), operating expenses and additions to property, plant and equipment when placed in service, among other items. We recognize revenue for transmission services over time as transmission services are provided to customers (generally using an output measure of progress based on transmission load delivered). Customers simultaneously receive and consume the benefits provided by the Regulated Operating Subsidiaries’ services. We recognize revenue in the amount to which we have the right to invoice because we have a right to consideration in an amount that corresponds directly with the value to the customer of performance completed to date. As billing agents, MISO and SPP independently bill our customers on a monthly basis and collects fees for the use of our transmission systems. No component of the transaction price is allocated to unsatisfied performance obligations. Transmission service revenue includes an estimate for unbilled revenues from service that has been provided but not billed by the end of an accounting period. Unbilled revenues are dependent upon a number of factors that require management’s judgment including estimates of transmission network load (for the MISO Regulated Operating Subsidiaries) and preliminary information provided by billing agents. Due to the seasonal fluctuations of actual load, the unbilled revenue amount generally increases during the spring and summer and decreases during the fall and winter. See Note 3 for information on changes in unbilled accounts receivable. Other Services Other services revenue consists of rental revenues, easement revenues, and amounts from providing ancillary services. A portion of other services revenue is treated as a revenue credit and reduces gross revenue requirement when calculating net revenue requirement under our Formula Rates. Total other services revenue for the three months ended March 31, 2021 and 2020 were $1 million. Formula Rate True-Up The true-up mechanism under our Formula Rates is considered an alternative revenue program of a rate-regulated utility given it permits our Regulated Operating Subsidiaries to adjust future rates in response to past activities or completed events in order to collect our actual revenue requirements under our Formula Rates. In accordance with our accounting policy, only the current year origination of the true-up is reported as a Formula Rate true-up. See “Cost-Based Formula Rates with True-Up Mechanism” in Note 4 for more information on our Formula Rates.

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)3 Months Ended
Mar. 31, 2021
Receivables [Abstract]
Components of accounts receivableThe following table presents the components of accounts receivable on the condensed consolidated statements of financial position: March 31, December 31, (In millions of USD) 2021 2020 Trade accounts receivable $ 3 $ 2 Unbilled accounts receivable 106 102 Other 11 10 Total accounts receivable $ 120 $ 114

REGULATORY MATTERS (Tables)

REGULATORY MATTERS (Tables)3 Months Ended
Mar. 31, 2021
Regulated Operations [Abstract]
Net Changes in Regulatory Assets and LiabilitiesThe net changes in regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, were as follows during the three months ended March 31, 2021: (In millions of USD) Total Net regulatory assets as of December 31, 2020 $ 50 Net collection of 2019 revenue deferrals and accruals, including accrued interest (11) Net revenue accrual for the three months ended March 31, 2021 37 Net regulatory assets as of March 31, 2021 $ 76
Schedule of Regulatory Assets and LiabilitiesRegulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, are recorded in the condensed consolidated statements of financial position as follows: March 31, December 31, (In millions of USD) 2021 2020 Current regulatory assets $ 37 $ 44 Non-current regulatory assets 53 19 Current regulatory liabilities (4) (1) Non-current regulatory liabilities (10) (12) Net regulatory assets $ 76 $ 50

DEBT (Tables)

DEBT (Tables)3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]
Schedule of Revolving Credit AgreementsAt March 31, 2021, ITC Holdings and certain of its Regulated Operating Subsidiaries had the following unsecured revolving credit facilities available: (In millions of USD, except percentages) Total Outstanding Unused Weighted Average Commitment ITC Holdings $ 400 $ — $ 400 (d) —% 0.175 % ITC Transmission 100 56 44 1.1% 0.10 % METC 100 52 48 1.1% 0.10 % ITC Midwest 225 93 132 1.1% 0.10 % ITC Great Plains 75 31 44 1.1% 0.10 % Total $ 900 $ 232 $ 668 ____________________________ (a) Included within long-term debt in the condensed consolidated statements of financial position. (b) Interest charged on borrowings depends on the variable rate structure we elected at the time of each borrowing. (c) Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating. (d) ITC Holdings’ revolving credit agreement may be used for general corporate purposes, including to repay commercial paper issued pursuant to the commercial paper program described above, if necessary. While outstanding commercial paper does not reduce available capacity under ITC Holdings’ revolving credit agreement, the unused capacity under this agreement adjusted for the commercial paper outstanding was $220 million as of March 31, 2021.[1],[2],[3],[4]
[1]Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating.
[2]ITC Holdings’ revolving credit agreement may be used for general corporate purposes, including to repay commercial paper issued pursuant to the commercial paper program described above, if necessary. While outstanding commercial paper does not reduce available capacity under ITC Holdings’ revolving credit agreement, the unused capacity under this agreement adjusted for the commercial paper outstanding was $220 million as of March 31, 2021.
[3]Included within long-term debt in the condensed consolidated statements of financial position.
[4]Interest charged on borrowings depends on the variable rate structure we elected at the time of each borrowing.

RETIREMENT BENEFITS AND ASSET_2

RETIREMENT BENEFITS AND ASSETS HELD IN TRUST (Tables)3 Months Ended
Mar. 31, 2021
Pension plans
Defined Benefit Plan Disclosure [Line Items]
Net Defined Benefit Cost ComponentsNet periodic benefit cost for the pension plans, by component, was as follows: Three months ended March 31, (In millions of USD) 2021 2020 Service cost $ 2 $ 2 Interest cost 1 1 Expected return on plan assets (1) (1) Net pension cost $ 2 $ 2
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Net Defined Benefit Cost ComponentsNet postretirement benefit plan cost, by component, was as follows: Three months ended March 31, (In millions of USD) 2021 2020 Service cost $ 2 $ 3 Interest cost 1 1 Expected return on plan assets (1) (1) Net postretirement cost $ 2 $ 3

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)3 Months Ended6 Months Ended
Mar. 31, 2021Jun. 30, 2020
Fair Value Disclosures [Abstract]
Assets and Liabilities at Fair Value Subject to Three-Tier HierarchyOur assets are measured at fair value subject to the three-tier hierarchy at March 31, 2021, were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant (In millions of USD) (Level 1) (Level 2) (Level 3) Financial assets measured on a recurring basis: Mutual funds — fixed income securities $ 51 $ — $ — Mutual funds — equity securities 10 — — Total $ 61 $ — $ — Our assets measured at fair value subject to the three-tier hierarchy at December 31, 2020, were as follows: Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant (In millions of USD) (Level 1) (Level 2) (Level 3) Financial assets measured on a recurring basis: Cash equivalents $ 1 $ — $ — Mutual funds — fixed income securities 52 — — Mutual funds — equity securities 10 — — Total $ 63 $ — $ —

STOCKHOLDER'S EQUITY (Tables)

STOCKHOLDER'S EQUITY (Tables)3 Months Ended
Mar. 31, 2020
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)The following table provides the components of changes in AOCI: Three months ended March 31, (In millions of USD) 2021 2020 Balance at the beginning of period $ (8) $ 7 Derivative instruments Reclassification of net loss relating to interest rate cash flow hedges from AOCI to earnings (net of tax of less than $1 for the three months ended March 31, 2021) (a) 1 — Loss on interest rate swaps relating to interest rate cash flow hedges (net of tax of $7 for the three months ended March 31, 2020) — (16) Total other comprehensive income (loss), net of tax 1 (16) Balance at the end of period $ (7) $ (9) ____________________________ (a) The reclassification of the net loss relating to interest rate cash flow hedges is reported in interest expense on a pre-tax basis.[1]
[1](a) The reclassification of the net loss relating to interest rate cash flow hedges is reported in interest expense on a pre-tax basis.

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Tables)3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Schedule of Impacts from the Initial and Second ROE ComplaintsThe recognition of the obligations associated with the MISO ROE Complaints resulted in the following impacts to the condensed consolidated statements of comprehensive income: Three months ended March 31, (In millions of USD) 2021 2020 Interest expense increase $ — $ 1 Estimated net income reduction — (1)

SUPPLEMENTAL FINANCIAL INFORM_2

SUPPLEMENTAL FINANCIAL INFORMATION TABLE TAGS (Tables)3 Months Ended
Mar. 31, 2021
Supplemental Cash Flow Elements [Abstract]
Restrictions on Cash and Cash EquivalentsThe following table provides a reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated statements of financial position that sum to the total of the same such amounts shown in the condensed consolidated statements of cash flows: March 31, December 31, (In millions of USD) 2021 2020 2020 2019 Cash and cash equivalents $ 3 $ 6 $ 4 $ 4 Restricted cash included in: Other non-current assets 2 2 2 2 Total cash, cash equivalents and restricted cash $ 5 $ 8 $ 6 $ 6
Supplementary Cash Flow InformationSupplementary Cash Flows Information Three months ended March 31, (In millions of USD) 2021 2020 Supplementary cash flows information: Interest paid (net of interest capitalized) $ 44 $ 49 Supplementary non-cash investing and financing activities: Additions to property, plant and equipment and other long-lived assets (a) 111 88 Allowance for equity funds used during construction 7 6 ____________________________ (a) Amounts consist of current and accrued liabilities for construction, labor, materials and other costs that have not been included in investing activities. These amounts have not been paid for as of March 31, 2021 or 2020, respectively, but will be or have been included as a cash outflow from investing activities for expenditures for property, plant and equipment when paid.[1]
[1]Amounts consist of current and accrued liabilities for construction, labor, materials and other costs that have not been included in investing activities. These amounts have not been paid for as of March 31, 2021 or 2020, respectively, but will be or have been included as a cash outflow from investing activities for expenditures for property, plant and equipment when paid.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]
Schedule of Financial Information by Reportable SegmentThe following tables show our financial information by reportable segment: Three months ended OPERATING REVENUES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 346 $ 331 Intercompany eliminations (10) (9) Total Operating Revenues $ 336 $ 322 Three months ended INCOME (LOSS) BEFORE INCOME TAXES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 171 $ 157 ITC Holdings and other (38) (33) Total Income Before Income Taxes $ 133 $ 124 Three months ended NET INCOME: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 126 $ 116 ITC Holdings and other 100 92 Intercompany eliminations (126) (116) Total Net Income $ 100 $ 92 TOTAL ASSETS: March 31, December 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 10,900 $ 10,710 ITC Holdings and other 5,935 5,830 Reconciliations / Intercompany eliminations (a) (5,821) (5,715) Total Assets $ 11,014 $ 10,825 ____________________________ (a) Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in our condensed consolidated statements of financial position.[1]
[1]Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in our condensed consolidated statements of financial position

GENERAL GENERAL (Details)

GENERAL GENERAL (Details)Apr. 20, 2016
Ownership Percentage of Minority Investor Upon Completion of Merger19.90%

REVENUE (Details)

REVENUE (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Disaggregation of Revenue [Line Items]
Transmission Rate, Applicable Period1 year
Transmission and other services $ 299 $ 289
Other services
Disaggregation of Revenue [Line Items]
Transmission and other services $ 1 $ 1

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable $ 120 $ 114
Unbilled accounts receivable106 102
Other11 10
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable $ 3 $ 2

REGULATORY MATTERS Net Changes

REGULATORY MATTERS Net Changes in Regulatory Assets and Liabilities (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)
Revenue Accruals and Deferrals
Net regulatory assets as of December 31, 2020 $ 50
Net collection of 2019 revenue deferrals and accruals, including accrued interest(11)
Net revenue accrual for the three months ended March 31, 202137
Net regulatory assets $ 76
Regulatory Liabilities [Line Items]
Net Changes in Regulatory Assets and LiabilitiesThe net changes in regulatory assets and liabilities associated with our Regulated Operating Subsidiaries’ Formula Rate revenue accruals and deferrals, including accrued interest, were as follows during the three months ended March 31, 2021: (In millions of USD) Total Net regulatory assets as of December 31, 2020 $ 50 Net collection of 2019 revenue deferrals and accruals, including accrued interest (11) Net revenue accrual for the three months ended March 31, 2021 37 Net regulatory assets as of March 31, 2021 $ 76

REGULATORY MATTERS Schedule of

REGULATORY MATTERS Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Schedule of Regulatory Assets and Liabilities [Line Items]
Current regulatory assets $ 40 $ 52
Non-current regulatory assets244 212
Current regulatory liabilities(20)(14)
Non-current regulatory liabilities(606)(612)
Net regulatory assets76 50
Revenue Deferrals, Including Accrued Interest
Schedule of Regulatory Assets and Liabilities [Line Items]
Current regulatory liabilities(4)(1)
Non-current regulatory liabilities(10)(12)
Revenue Accruals, Including Accrued Interest
Schedule of Regulatory Assets and Liabilities [Line Items]
Current regulatory assets37 44
Non-current regulatory assets $ 53 $ 19

REGULATORY MATTERS (Details)

REGULATORY MATTERS (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)Dec. 31, 2020USD ($)Mar. 31, 2020USD ($)Jul. 16, 2020Jun. 11, 2019Oct. 18, 2018Apr. 20, 2018Sep. 28, 2016
Regulatory Liabilities [Line Items]
Transmission Rate, Applicable Period1 year
Revenue true-up amount reflected in customer bill, period of recognition2 years
Revenue (increase) decrease $ (336) $ (322)
Current regulatory liability20 $ 14
Accrued interest $ 13 $ 9
METC LLC [Member]
Regulatory Liabilities [Line Items]
Rate Of Return On Equity12.38%
ITC Midwest LLC [Member]
Regulatory Liabilities [Line Items]
Rate Of Return On Equity12.38%
MISO Operating Subsidiaries
Regulatory Liabilities [Line Items]
Incentive Adder for Independent Transmission Ownership25 25 25
Basis Point Incentive Adder for RTO Participation50 50
ITC Great Plains LLC [Member]
Regulatory Liabilities [Line Items]
Incentive Adder for Independent Transmission Ownership25 100 25 100
Basis Point Incentive Adder for RTO Participation50 50
Revised Rate Of Return On Equity11.41%12.16%
Minimum [Member] | MISO Operating Subsidiaries
Regulatory Liabilities [Line Items]
Incentive Adder for Independent Transmission Ownership50
Minimum [Member] | ITC Great Plains LLC [Member]
Regulatory Liabilities [Line Items]
Revised Rate Of Return On Equity10.66%10.66%
Maximum [Member] | MISO Operating Subsidiaries
Regulatory Liabilities [Line Items]
Incentive Adder for Independent Transmission Ownership100
Rate of Return on Equity and Capital Structure Complaints | ITC Great Plains LLC [Member]
Regulatory Liabilities [Line Items]
Required customer refund paid $ 4

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Goodwill and Intangible Assets [Line Items]
Accumulated amortization $ 46 $ 46

DEBT Schedule of Revolving Cred

DEBT Schedule of Revolving Credit Agreements (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Line of Credit Facility [Line Items]
Total available capacity $ 900
Outstanding Balance[1]232
Unused Capacity668
Commercial Paper180 $ 67
Capacity
Line of Credit Facility [Line Items]
Commercial Paper220
ITC Holdings Corp. [Member]
Line of Credit Facility [Line Items]
Total available capacity400
Outstanding Balance[1]0
Unused Capacity $ 400
Debt, Weighted Average Interest Rate[2]0.00%
Commitment Fee Rate[3]0.175%
ITCTransmission [Member]
Line of Credit Facility [Line Items]
Total available capacity $ 100
Outstanding Balance[1]56
Unused Capacity $ 44
Debt, Weighted Average Interest Rate[2]1.10%
Commitment Fee Rate[3]0.10%
METC LLC [Member]
Line of Credit Facility [Line Items]
Total available capacity $ 100
Outstanding Balance[1]52
Unused Capacity $ 48
Debt, Weighted Average Interest Rate[2]1.10%
Commitment Fee Rate[3]0.10%
ITC Midwest LLC [Member]
Line of Credit Facility [Line Items]
Total available capacity $ 225
Outstanding Balance[1]93
Unused Capacity $ 132
Debt, Weighted Average Interest Rate[2]1.10%
Commitment Fee Rate[3]0.10%
ITC Great Plains LLC [Member]
Line of Credit Facility [Line Items]
Total available capacity $ 75
Outstanding Balance[1]31
Unused Capacity $ 44
Debt, Weighted Average Interest Rate[2]1.10%
Commitment Fee Rate[3]0.10%
[1]Included within long-term debt in the condensed consolidated statements of financial position.
[2]Interest charged on borrowings depends on the variable rate structure we elected at the time of each borrowing.
[3]Calculation based on the average daily unused commitments, subject to adjustment based on the borrower’s credit rating.

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Debt maturing within one year $ 180 $ 67
Commercial Paper Program, Maximum Authorized Amount Outstanding $ 400
Short-term Debt, Weighted Average Interest Rate, at Point in Time0.30%
Commercial Paper $ 180 $ 67
Short-Term Debt, Weighted Average Days to Maturity40 days

RETIREMENT BENEFITS AND ASSET_3

RETIREMENT BENEFITS AND ASSETS HELD IN TRUST Schedule of Net Defined Benefit Cost Components (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined Contribution Plan, Cost $ 3 $ 3
Pension plans
Defined Benefit Plan Disclosure [Line Items]
Service cost2 2
Interest cost1 1
Expected return on plan assets(1)(1)
Net cost2 2
Other Postretirement Benefits Plan
Defined Benefit Plan Disclosure [Line Items]
Service cost2 3
Interest cost1 1
Expected return on plan assets(1)(1)
Net cost $ 2 $ 3

RETIREMENT BENEFITS AND ASSET_4

RETIREMENT BENEFITS AND ASSETS HELD IN TRUST (Details) - USD ($)3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Document Fiscal Year Focus2021
Defined Contribution Plan, Cost $ 3,000,000 $ 3,000,000
Other Pension Plan [Member] | Forecast [Member]
Defined Benefit Plan, Expected Future Employer Contributions [Abstract]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year $ 4,000,000
Supplemental Employee Retirement Plan [Member] | Forecast [Member]
Defined Benefit Plan, Expected Future Employer Contributions [Abstract]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year3,000,000
Other Postretirement Benefits Plan | Forecast [Member]
Defined Benefit Plan, Expected Future Employer Contributions [Abstract]
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year $ 8,000,000

FAIR VALUE MEASUREMENTS Assets

FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value Subject to Three-Tier Hierarchy (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total - assets $ 61 $ 63
Cash equivalents1
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value, Net Asset (Liability)0 0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair Value, Net Asset (Liability)0 0
Mutual fund - fixed income securities [Member] | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Mutual funds51 52
Mutual fund - equity securities [Member] | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Mutual funds $ 10 $ 10

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020
Fair Value Disclosures [Abstract]
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount $ 0 $ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount0 0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount0 0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount0 0
Fair value of long-term debt and debt maturing within one year, excluding revolving and term loan credit agreements and commercial paper6,709 7,119
Book value of long-term debt and debt maturing within one year, net of discount and deferred financing fees and excluding revolving and term loan credit agreements and commercial paper6,098 6,097
Book value of revolving credit and term loan credit agreements $ 232 $ 198

STOCKHOLDER'S EQUITY (Details)

STOCKHOLDER'S EQUITY (Details) - USD ($)3 Months Ended12 Months Ended
Mar. 31, 2021Mar. 31, 2020Mar. 31, 2022
Document Fiscal Year Focus2021
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax $ 1,000,000 $ (16,000,000)
Balance at the beginning of period(8,000,000)7,000,000 $ (7,000,000)
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net0 (16,000,000)
Total other comprehensive income (loss), net of tax1,000,000 (16,000,000)
Balance at the end of period(7,000,000)(9,000,000)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax7,000,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax $ 1,000,000 $ 0
Forecast [Member]
Other Comprehensive Loss, reclassification adjustment from AOCI to earnings, pretax4,000,000
Other Comprehensive Loss, reclassification adjustment from AOCI to earnings, Tax of less than $1 million $ 2,000,000

SHARE-BASED COMPENSATION AND _2

SHARE-BASED COMPENSATION AND EMPLOYEE SHARE PURCHASE PLAN (Details) - 2017 Omnibus Plan3 Months Ended
Mar. 31, 2021USD ($)shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted Award Vesting RightsThe granted awards and related dividend equivalents have no shareholder rights.
Performance Share Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted | shares281,516
Aggregate fair value of PBUs or SBUs $ 54,000,000
Total unrecognized compensation cost $ 26,000,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted | shares221,433
Aggregate fair value of PBUs or SBUs $ 29,000,000
Total unrecognized compensation cost $ 16,000,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in MillionsApr. 28, 2021Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
Intercompany receivables (less than $1 million) $ 1 $ 1
Intercompany payables (less than $1 million)1 $ 1
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party3 $ 3
Payments of Dividends58 82
Related Party Transaction, Expenses from Transactions with Related Party $ 1 $ 1
Subsequent Event
Payments of Dividends $ 57

COMMITMENTS AND CONTINGENT LI_3

COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Millions3 Months Ended
Mar. 31, 2021USD ($)Mar. 31, 2020USD ($)Dec. 31, 2020USD ($)May 21, 2020Nov. 21, 2019Dec. 31, 2018USD ($)Sep. 28, 2016Jun. 30, 2016Feb. 12, 2015Nov. 12, 2013
Commitments and Contingent Liabilities [Line Items]
Current regulatory liability $ 20 $ 14
Interest expense increase62 $ 59
Estimated net income reduction(100)(92)
Regulatory assets40 52
MISO Operating Subsidiaries
Commitments and Contingent Liabilities [Line Items]
Customer Refund Liability, Current $ 2
Equity in capital structure for ratemaking purposes $ 5,000
Incentive Adder for Independent Transmission Ownership10
Effect on net income from 10 basis point reduction in the authorized base return on equity $ 5
Basis Point Incentive Adder for RTO Participation50 50
Refunded from Customers $ 8
METC LLC [Member]
Commitments and Contingent Liabilities [Line Items]
Rate Of Return On Equity12.38%
METC LLC [Member] | Rate of Return on Equity and Capital Structure Initial Complaint [Member]
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity9.15%
METC LLC [Member] | Rate of Return on Equity and Capital Structure Second Complaint
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity8.67%
ITCTransmission [Member]
Commitments and Contingent Liabilities [Line Items]
Rate Of Return On Equity12.38%
ITCTransmission [Member] | Rate of Return on Equity and Capital Structure Initial Complaint [Member]
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity9.15%
ITCTransmission [Member] | Rate of Return on Equity and Capital Structure Second Complaint
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity8.67%
ITC Midwest LLC [Member]
Commitments and Contingent Liabilities [Line Items]
Rate Of Return On Equity12.38%
ITC Midwest LLC [Member] | Rate of Return on Equity and Capital Structure Initial Complaint [Member]
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity9.15%
ITC Midwest LLC [Member] | Rate of Return on Equity and Capital Structure Second Complaint
Commitments and Contingent Liabilities [Line Items]
Reduced rate of return on equity8.67%
Estimated Potential Refund Related to Return on Equity Complaints
Commitments and Contingent Liabilities [Line Items]
Regulatory assets3
Impact from Recognition of Liability | Rate of Return on Equity and Capital Structure Complaints
Commitments and Contingent Liabilities [Line Items]
Interest expense increase $ 1
Estimated net income reduction0 $ (1)
Interest Income, Other0
Estimated Potential Refund Related to Return on Equity Complaints
Commitments and Contingent Liabilities [Line Items]
Current regulatory liability $ 16 13 $ 151
Regulatory assets $ 8
FERC Order [Member] | Minimum [Member] | Rate of Return on Equity and Capital Structure Initial Complaint [Member]
Commitments and Contingent Liabilities [Line Items]
Revised Rate Of Return On Equity10.02%10.02%9.88%10.32%
FERC Order [Member] | Maximum [Member] | Rate of Return on Equity and Capital Structure Initial Complaint [Member]
Commitments and Contingent Liabilities [Line Items]
Revised Rate Of Return On Equity12.62%12.24%11.35%
Presiding Administrative Law Judge Initial Decision | Minimum [Member] | Rate of Return on Equity and Capital Structure Second Complaint
Commitments and Contingent Liabilities [Line Items]
Recommended rate of return on equity9.70%
Presiding Administrative Law Judge Initial Decision | Maximum [Member] | Rate of Return on Equity and Capital Structure Second Complaint
Commitments and Contingent Liabilities [Line Items]
Recommended rate of return on equity10.68%

SUPPLEMENTAL FINANCIAL INFORM_3

SUPPLEMENTAL FINANCIAL INFORMATION Restricted cash reconciliation (Details) - USD ($) $ in MillionsMar. 31, 2021Dec. 31, 2020Mar. 31, 2020Dec. 31, 2019
Supplemental Cash Flow Elements [Abstract]
Cash and cash equivalents $ 3 $ 4 $ 6 $ 4
Restricted Cash, included in other non-current assets2 2 2 2
Cash, Cash Equivalents and Restricted Cash $ 5 $ 6 $ 8 $ 6

SUPPLEMENTAL FINANCIAL INFORM_4

SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Cash Flows (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]
Interest paid (net of interest capitalized) $ 44 $ 49
Additions to property, plant and equipment and other long-lived assets[1]111 88
Allowance for equity funds used during construction $ 7 $ 6
[1]Amounts consist of current and accrued liabilities for construction, labor, materials and other costs that have not been included in investing activities. These amounts have not been paid for as of March 31, 2021 or 2020, respectively, but will be or have been included as a cash outflow from investing activities for expenditures for property, plant and equipment when paid.

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2021Mar. 31, 2020Dec. 31, 2020
OPERATING REVENUES:
Operating revenues $ 336 $ 322
INCOME (LOSS) BEFORE INCOME TAXES:
Income before income taxes133 124
NET INCOME:
NET INCOME100 92
TOTAL ASSETS:
Assets $ 11,014 $ 10,825
Schedule of Financial Information by Reportable Segment[1]The following tables show our financial information by reportable segment: Three months ended OPERATING REVENUES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 346 $ 331 Intercompany eliminations (10) (9) Total Operating Revenues $ 336 $ 322 Three months ended INCOME (LOSS) BEFORE INCOME TAXES: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 171 $ 157 ITC Holdings and other (38) (33) Total Income Before Income Taxes $ 133 $ 124 Three months ended NET INCOME: March 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 126 $ 116 ITC Holdings and other 100 92 Intercompany eliminations (126) (116) Total Net Income $ 100 $ 92 TOTAL ASSETS: March 31, December 31, (In millions of USD) 2021 2020 Regulated Operating Subsidiaries $ 10,900 $ 10,710 ITC Holdings and other 5,935 5,830 Reconciliations / Intercompany eliminations (a) (5,821) (5,715) Total Assets $ 11,014 $ 10,825 ____________________________ (a) Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in our condensed consolidated statements of financial position.
Regulated Operating Subsidiaries
OPERATING REVENUES:
Operating revenues $ 346 331
INCOME (LOSS) BEFORE INCOME TAXES:
Income before income taxes171 157
NET INCOME:
NET INCOME126 116
TOTAL ASSETS:
Assets10,900 10,710
ITC Holdings and other
INCOME (LOSS) BEFORE INCOME TAXES:
Income before income taxes(38)(33)
NET INCOME:
NET INCOME100 92
TOTAL ASSETS:
Assets5,935 5,830
Intercompany eliminations
OPERATING REVENUES:
Operating revenues(10)(9)
NET INCOME:
NET INCOME(126) $ (116)
TOTAL ASSETS:
Assets[1] $ (5,821) $ (5,715)
[1]Reconciliation of total assets results primarily from differences in the netting of deferred tax assets and liabilities in our segments as compared to the classification in our condensed consolidated statements of financial position