Southern California Edison vice president Steven Conroy says in a statement that the company is changing its policy because permanent structures would stop it from safely maintaining and inspecting its steel towers and thick transmission lines.
The utility had planned to raise millions of dollars by leasing out valuable real estate under its web of high-voltage towers.
Firefighters opposed the construction because they said it posed a fire hazard, while neighbors said the buildings would lead to blight.
Los Angeles County recently changed its building codes to ban permanent structures under major transmission lines.
But Conroy says Edison decided independently to halt its construction plans.