Posted: Dec 10, 2013 11:01 AM
Updated: Dec 10, 2013 11:03 AM
JACKSON, Miss. (AP) Mississippi utility regulators have rejected a merger proposal by Entergy Corp. and ITC Holdings Corp.
In a unanimous vote Tuesday, Public Service Commission members said the deal could have meant a rate increase totaling $300 million for Mississippi customers over a 30-year period.
In 2011, New Orleans-based Entergy said it would transfer its high-voltage lines to Novi, Mich.-based ITC. ITC would issue Entergy shareholders enough stock to give them a majority of ITC shares worth more than $2 billion. ITC would assume $1.78 billion in debt.
The merger request also was filed in other states Entergy serves Arkansas, Louisiana and Texas.
Regulators there have not yet acted, but rejection in Mississippi makes the deal's success unlikely.
An Entergy spokesman said the company was preparing a response to Tuesday's vote.