Entergy, ITC team prepare to develop broad plan for smooth ITC spin-off

Entergy Corp. (NYSE:ETR) and ITC Holdings Corp. (NYSE:ITC) are preparing to ensure a smooth transition to independent transmission company structure, according to a filing made by ITC with SEC on April 19.

The transmission spin-off and merger implementation team will develop a comprehensive implementation plan, defining everything before the start of the new transmission-only company, ITC states.

Under a definitive agreement, Entergy will divest and then merge its electric transmission business into ITC.

On March 28, employees from the both companies attended their first monthly status update meeting with Texas Joe Domino, president and CEO of Entergy, and Jon Jipping, executive vice president and COO of ITC Holdings, who are leading the project management office (PMO).

The PMO is responsible for successful separation the transmission business. The PMO is taking a phased approach to implementation.

“Our job is to make sure we’ve identified everything that has to happen for a successful transfer of operations,” Domino said. “Our focus will also be on satisfying financial, legal and regulatory requirements to ensure a smooth, seamless transition.”

The PMO, which is focused on establishing the new transmission subsidiary, Mid South TransCo, which will become part of ITC, also is mapping out changes to Entergy’s operations once the transmission business is no longer part of the company.

The companies intend to complete the spin-off and merger in 2013.