by Luke Jones
Posted 10/2/2012 10:59 am
Updated 7 months ago
Entergy Arkansas Inc. recently announced it had filed a request with the Arkansas Public Service Commission to spin off its Arkansas transmission portion and merge it with ITC Midsouth LLC.
The filing is part of a multi-state regulatory process required to complete the $1.78 billion spinoff, which was announced in December 2011. ITC Midsouth is a subsidiary of ITC Holdings Corp. of Novi, Mich.
"The transaction is a significant step towards meeting the challenges facing the entire electric industry - challenges driven by the need to upgrade the infrastructure, modernize equipment and meet growing environmental and compliance requirements," ITC stated in a news release.
If successful, Entergy would transfer about 15,800 miles of transmission lines, along with substations, to ITC. ITC would serve wholesale customers in Arkansas like Entergy and the Arkansas Electric Cooperative Corp.
The transaction requires approval from several states and needs to satisfy federal conditions before closing; the companies expect it to close in 2013.