Mr. Victor Prep, P.E. of ERG presented REVERSE MORRIS TRUST: Ratepayer Value vs. Shareholder Gain, A review of the Failed Entergy – ITC Transaction before the NARUC Accounting & Finance Conference on March 18, 2014. The presentation dealt with:
- The background and history of the proposed Entergy – ITC transmission asset divestiture
- The structure and use of a Reverse Morris Trust (RMT) for the specific proposed transaction, and mergers and acquisitions in general
- How a RMT affects and complicates the regulatory evaluation of mergers and acquisitions
- The impact of the FERC regulatory construct vs. state and local regulation
- The lessons learned from the attempted transaction and how they apply to future transaction requests
The presentation highlighted ERG’s breadth of experience as applied to a novel and untested regulatory strategy for public utilities in the M&A field.
For more information or to request a copy of the presentation slides, please follow this link: Presentation before NARUC 20140318 web version