In the report, BMO Capital Markets noted, “The sessions were particularly timely given the Texas commission's open meeting on the transaction this past Friday, which culminated in ETR/ITC's decision to withdraw their filing with the intention to include a rate mitigation plan in a new filing. It appears to us that approval of the transaction by the various state commissions largely rests on two issues: ITC's higher cost of capital (higher FERC-allowed ROE) and the loss of some level of state control (ITC is FERC regulated). ETR/ITC's rate mitigation proposals are designed to address the ROE issue, but it is the reduced state oversight that appears to be the most challenging to overcome. While continuing to stress its commitment to the transaction, ETR noted that should it be denied, there is no real negative to its retaining the transmission business, which is its fastest-growing segment at this time.”