What is the effect of methylation in the isogenic agouti mice experiment? (epigenetics)

The way I understand it is agouti mice are isogenic (same DNA sequence) but have different coat color. There is a transposon next to the agouti gene and when it loses methyl groups, the transposon is silenced. When the transposon is silenced, the agouti gene is overexpressed, and this results in darker coat. Is this correct?