Oct 29 U.S. power company Entergy Corp
said Tuesday it will not complete the spinoff and merger of its
transmission business with U.S. transmission company ITC
Holdings Corp before the end of the year as previously
If the deal is not completed by December 31, either party
can cancel the $1.78 billion transaction, Entergy's CEO Leo
Denault said on a conference call following the release of the
"We continue to believe (the ITC deal) will result in
optimal value for all stakeholders," Denault said.
"ITC's independence, broader regional planning and sole
focus (on transmission) will ... reduce congestion, attract new
generating resources ... and ultimately lead to lower energy
costs," he said.
But state regulators have been slow to approve the deal,
fearing it could increase transmission costs for consumers in
Entergy's Arkansas, Louisiana, Mississippi and Texas service
In September, Entergy and ITC re-filed their proposal in
Texas with a new plan that better protects consumers from higher
transmission rates after state regulators threatened to reject
Denault said hearings are scheduled for November in
Louisiana, while the companies are working with regulators in
Arkansas to schedule another round of hearings.
He said hearings in Mississippi concluded in September.
Denault could not say when the states would decide on the
ITC deal, noting it will take the companies "at least 60 to 90
days after all regulatory approvals are received to close the
Entergy shares lost $1.91, or about 2.8 percent, to $66.20
in Tuesday afternoon trade. ITC, meanwhile, was up 0.8 percent
to $100.85 per share.