Entergy Corp.’s bid to spin off and merger its electric transmission business to ITC Holdings in a $1.8 billion transaction was rejected in a 3-0 vote by the Mississippi Public Service Commission.
“We are disappointed that the Mississippi commission took action today and found that the transaction is not in the public interest. We will evaluate the Mississippi commission’s 99-page order and work with ITC to determine next steps,” Entergy said in a statement.
The deal, which already has the approval of federal regulators as well as shareholders, would double the size of ITC Holdings’ operations.
The transaction involves Entergy’s 15,400-mile transmission network serving parts of Arkansas, Louisiana, Mississippi and Texas. The MPSC is just one regulatory body that would have to approve the deal, and is the first one not to approve it.
ITC and Entergy offered $77.5 million in electric rate mitigations to Mississippi customers, according to reports.
Regulators in the city of New Orleans, Arkansas, Louisiana and Texas still have to issue their final rulings on the spin-off/merger.