(Adds comments from heads of FERC and ITC Holdings)

WASHINGTON, April 13 (Reuters) - The Federal Energy Regulatory Commission said on Monday it approved financial incentives for ITC Holdings Corp's (ITC.N: Quote, Profile, Research) Green Power Express power line project that will move wind-generated electricity from North Dakota, South Dakota, Minnesota and Iowa.

FERC approved a 12.38 percent return on investment for the project, which would transmit up to 12,000 megawatts of wind energy over a 3,000-mile (4,800 km) high voltage power line to Chicago, Minneapolis and southeastern Wisconsin. The project will cost between $10 billion and $12 billion.

The administration of U.S. President Barack Obama is pushing for more U.S. renewable energy production, such as wind energy, and FERC said the Green Power Express project would boost supply alternatives and decrease congestion on existing transmission facilities.

"Meeting our nation's energy goals will require developing extra-high voltage transmission infrastructure that is needed to bring clean, renewable energy from areas where it is produced most efficiently to areas where most of our nation's power is consumed," said FERC Chairman Jon Wellinghoff.

ITC said it will now ask the Midwest Independent Transmission System Operator to review its proposed multi-state project.

"This is an exciting step in the process of connecting clean, renewable energy sources from wind-rich areas to urban locations where it is needed," said Joseph Welch, Chairman, President and CEO of ITC. (Reporting by Tom Doggett; Editing by Lisa Shumaker)