Avista Corporation and a Canadian utility argue that Washington regulators erred when they blocked Avista’s $5.3 billion sale to Hydro One by exaggerating the political risks to Avista’s customers from the province of Ontario’s ownership in Hydro One. 
In Monday’s request for reconsideration, the companies said the state Utilities and Transportation Commission failed to specify “how Provincial actions could actually impact Avista” and downplayed the benefits of the sale to the Spokane-based utility’s customers. The three-member UTC has 20 days to act on the request for reconsideration.
The companies asked the commission to finish any additional reviews of the sale by the end of January. Avista and Hydro One have a March 29th deadline to conclude the sale, and the Toronto-based utility’s financing for the purchase expires shortly afterward.
The province of Ontario’s 47 percent ownership in Hydro One was a key consideration during the review of the sale. In its December 5th ruling, the UTC said Hydro One lacks sufficient independence from the province to be an appropriate merger partner for Avista. The UTC cited Premier Doug Ford’s politically motivated decision to seek removal of Hydro One’s board of directors and its chief executive officer shortly after he was sworn into office last summer. Hydro One’s credit rating dropped as a result of the sudden ouster, and Avista’s and Hydro One’s stock prices fell.
The proposed sale requires approval from regulators in the five states in which Avista operates. Montana and Alaska signed off on the deal, while decisions have not yet been issued by Idaho and Oregon. (Spokesman-Review)
