The Federal Energy Regulatory Commission (FERC) approved a joint application for Entergy (NYSE: ETR) to spin off its electric transmission business and merge it into a subsidiary of ITC Holdings Corp (NYSE: ITC). FERC also approved new rate constructs for the transmission assets under ITC ownership.
FERC would allow the transfer of approximately 15,400 circuit miles of interconnected transmission lines at voltages of 69 kV and above and the associated substations in Arkansas, Louisiana, Mississippi, Missouri and Texas from Entergy to ITC. In addition, approximately 750 Entergy employees would become ITC employees, and ITC would establish a regional headquarters in Jackson, Miss., the current location of Entergy’s transmission business.
The deal still requires approval from Entergy’s state and local jurisdictions, including the Arkansas, Louisiana, Mississippi, Missouri and Texas public service commissions and the New Orleans City Council. It is expected to close this year.
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