Idaho regulators grill Hydro One execs over Avista sale

avista

Idaho regulators continue their hearing Tuesday on the proposed sale of Avista Corporation to a Canadian utility.

The Idaho Public Utilities Commission on Monday held a 7-and-a-half hour session, with attorneys grilling executives with Toronto-based Hydro One over the Ontario government’s influence on the utility trying to finalize a $5.3 billion purchase of Spokane-based Avista. Most of the discussion revolved around whether the Canadian province acts primarily as an investor in Hydro One or whether it meddles in management.

About 47 percent of Hydro One’s stock is owned by the province, and in July, newly elected Premiere Doug Ford called for the resignation of Hydro One’s board of directors and the retirement of its CEO. The three public utilities commissioners voiced concerns about the province making “a political game” out of Hydro One that would further damage the company’s financial standing and, by default, Avista’s.

Hydro One Chairman Tom Woods said the actions taken by Ford were unusual, but stressed that Avista would operate as a subsidiary of Hydro One but retain a high degree of autonomy, with its headquarters remaining in Spokane. He added that rates for Avista customers would continue to be set by public utilities commissions in each state, and Avista would maintain a separate credit rating.

Avista and Hydro One want to finalize the sale before the end of the year, though they’ve extended the deadline for the transaction to March.

Idaho is among five states that must approve the sale for it to go through. Public utility commissions in Montana and Alaska have approved the sale, with decisions pending in Idaho, Washington, and Oregon. (Spokesman-Review)

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