Entergy Corp. (ETR)’s $1.78 billion sale of power lines across four states to ITC Holdings Corp. (ITC) was rejected by Mississippi regulators, threatening to unravel the deal.
The transaction was rejected by a 3-0 vote because it would have raised customer rates, resulted in a loss of state jurisdiction over transmission costs and offered no clear benefits to customers, Mississippi Public Service Commission Chairman Lynn Posey said in a statement posted today on the agency’s website.
Mississippi is the first state to reject the deal, announced in 2011. Texas regulators voiced similar concerns in August. ITC, the only publicly traded power-line operator, has said it will invest in the networks to reduce power failures. Opponents said the deal would place the lines under federal jurisdiction, which allows for higher returns on power lines.