Entergy will divest its transmission business into a newly-formed entity, Mid South TransCo, which will then be merged with ITC Holdings to form the nation’s largest independent transmission company, the companies announced today.

Though the last few decades have seen mergers among power utilities that do everything from generation and transmissions to disaster repair and customer service as they seek operating scale, today’s deal underlines a countervailing trend toward specialization as companies seek investment capital and clearer regulatory signals. Keep reading →