AUSTIN, Texas and NOVI, Mich., Feb. 19, 2013 /PRNewswire/ -- Entergy Texas, Inc., in conjunction with ITC Holdings Corp. (NYSE: ITC) and ITC Midsouth LLC, filed a request today at the Public Utility Commission of Texas to spin off Entergy Texas' electric transmission business and merge it into a subsidiary of ITC. The Texas filing is the final in a series of local and federal regulatory applications seeking approval for the transaction announced in December 2011 by Entergy Corporation (NYSE: ETR) and ITC.
The transaction is a significant step toward meeting the challenges facing the electric industry in Texas and across the country – challenges driven by the need to upgrade infrastructure, modernize equipment and meet growing environmental and compliance requirements.
"Entergy Texas is focused on meeting the energy needs of our customers now and in the future," said Sallie Rainer, Entergy Texas president and chief executive officer. "This transaction paves the way for greater service reliability and lower delivered energy costs as we seek to meet the challenges associated with transforming the U.S. electric grid for the 21 st century and beyond."
Entergy is seeking approval to transfer its transmission business, including approximately 15,400 circuit miles of interconnected transmission lines at voltages of 69kV and above and the associated substations, to ITC. ITC will then be one of the largest electric transmission companies in the U.S., with more than 30,000 miles of transmission lines spanning from the Great Lakes to the Gulf Coast. Meanwhile, Entergy's operating companies will continue to own and operate their respective distribution and generation businesses and will provide customer service, billing, outage reporting and restoration services to homes and businesses in the region.