Idaho Public Utilities Commission denies proposed merger of Avista Utilities, Hydro One
The Idaho Public Utilities Commission (PUC) recently issued an order denying the proposed merger of Avista Utilities and Hydro One.
In its order, the PUC said the transaction is prohibited by Idaho Code § 61-327, which limits the ability of an electric utility to sell assets in certain situations. Hydro One is an investor-owned utility, but the Province of Ontario is its largest shareholder with 47 percent of outstanding shares. The Province of Ontario maintains unique governance agreements with Hydro One, which grant it significant control and influence over the utility.
That lack of independence “dictates our decision to reject the proposed merger,” the Commission said
in its order.
“Hydro One is not purely a private, publicly traded corporation,” the PUC said. “Rather, the management of Hydro One is subject to the Province’s political pressure, legislative power, and special governance agreements.”
The companies filed a joint application for Commission approval in September 2017. Under the proposal, Avista would have become a wholly owned subsidiary of Hydro One and continued to operate out of its headquarters in Spokane under the same name with its existing staffing levels and management team.
