UPDATE 1-Entergy refiles $1.78 bln grid sale plan with Texas regulators
HOUSTON, Sept 23 (Reuters) - Entergy Corp resubmitted a plan to Texas regulators on Monday, proposing to transfer its electric transmission assets to ITC Holdings , company officials said.
Last month, the $1.78 billion proposal faced certain rejection by the Texas Public Utility Commission (PUC) and was withdrawn by Entergy Texas and ITC officials.
Since then, regulatory consideration of the deal has stalled in Louisiana and Arkansas.
The transaction is a spin-off and merger of Entergy's 15,400-mile transmission network serving parts of Arkansas, Louisiana, Mississippi and Texas.
The new filing includes a plan offered by Entergy and ITC Holdings to protect consumers from higher transmission costs by reducing rates by $92.7 million over five years.
"The refiling allows the full scope of the companies' rate mitigation plan to be formally considered in the new docket," Entergy said.
The rate mitigation plan was not considered by the Texas PUC because it was presented after a deadline in the case.
Entergy and ITC have asked the Texas PUC to consider the new filing on an expedited basis to allow a decision by the end of the year.
"The 'pause' allowed us to enhance the application, respond concisely and concretely to key concerns and issues, and demonstrate the key customer benefits and rate protections," said Entergy Texas spokesman David Caplan. "We're still enthusiastic over this transaction."
To address concerns from state regulators that the transaction benefits may not outweigh increased costs, Entergy and ITC have offered a total of $453 million in rate-mitigation funds to lower Entergy customer rates across its four-state territory.