ITC Ends Pursuit of Entergy Texas Transmission Assets

Entergy Corporation and ITC Holdings Corp. announced Friday that the companies have mutually agreed to end their pursuit of a spin off and merger of Entergy's transmission business with ITC.

The announcement comes after the Mississippi PSC rejected the transaction, as it would cede control over transmission pricing to FERC. Similar concerns were raised in Texas, and other retail jurisdictions.

In a Texas proposal for decision, two ALJs had characterized the proposed transaction, which would have seen an ITC subsidiary assume ownership of Entergy Texas' transmission assets, as allowing Entergy Texas, and ITC as the new transmission owner, to receive the benefits of electric restructuring without providing customers a choice in their electric provider, retaining monopoly status in the service area.

"Ratepayers would still have no customer choice, but the [Texas] Commission would lose jurisdiction over part of the rate-setting for those customers because the transmission rates would be subject to FERC authority," the ALJs had said