Montana Public Service Commission considers $5.3 billion merger of Avista, Hydro One

The Montana Public Service Commission (MPSC) has been requested to approve the acquisition of Avista Corporation (Avista) by Hydro One Limited (Hydro One), to the tune of $5.3 billion.

The merger would see a U.S. corporation bought up by a Canadian firm, and in turn create a regulated utility serving approximately 2 million people throughout Ontario and the Pacific Northwest. Montana comes into the picture because Avista, based in Washington, also supplies 32 customers near a hydroelectric facility in Northwest Montana, as well as maintains a 15 percent interest in Colstrip units 3 and 4..

“Although the proposed merger would only impact a handful of Montana customers, the Commission will carefully review every aspect of the application before us, including any potential impacts to Avista’s owned generating assets located in the state,” Commissioner Bob Lake said.

As part of the agreement, Hydro One will pay Avista shareholders $53 per common stock share–a premium over the company’s closing stock prices on July 18. While Avista will continue to operate, it will do so as a wholly owned subsidiary of Hydro One. Rates will not be increased nor are layoffs expected.

The agreement is expected to close in the second half of 2018, supposing it clears state and federal hurdles.