Settlement reached on proposed merger of Avista Corporation and Canada-based Hydro One Limited

Staff members of the Washington state Utilities and Transportation Commission (UTC) reached a settlement Tuesday on the proposed merger of Avista Corporation and Canada-based Hydro One Limited.

The settlement describes an agreement, that according to the parties, provides financial protections for Avista customers, approximately $30 million in rate credits to Washington ratepayers over a five-year period and approximately $11 million toward new and expanded low-income programs. It also provides for accelerated depreciation of Colstrip power plants in Montana and includes funds for economic transition efforts in Colstrip, Montana.

In September 2017, Avista and Hydro One filed a joint application with the UTC for approval of the proposed merger agreement. Under the original proposal, Avista would become a wholly owned subsidiary of Hydro One, would maintain its existing corporate headquarters in Spokane, Washington, and would continue to operate in Washington under the same name, management team, and employee structure.

The UTC will now consider whether to accept, reject or modify the agreement. The commission is expected to make a final decision on the settlement agreement this fall.

If the UTC, federal authorities and other state public service commissions in Avista’s service territory, approve the proposed merger, it could close in the second half of 2018.