Hydro One Limited (“Hydro One”) (TSX:H) and Avista Corporation
(“Avista”) (NYSE:AVA) have reached a significant milestone in the
regulatory approval process of the proposed merger. Notification of
a settlement in principle with various parties has been filed with
the Washington Utilities and Transportation Commission (“WUTC”).
The parties intend to file a settlement agreement with the WUTC on
or before March 27, 2018. The settlement in principle is subject to
the review and approval of the WUTC. Hydro One and Avista continue
to anticipate closing the transaction in the second half of 2018.
"This agreement in principle marks an important step towards
bringing together two historic companies positioned to deliver
long-term value for customers, employees, communities and
shareholders," said Mayo Schmidt, President and CEO, Hydro One. “As
we move forward to obtain the necessary regulatory approvals, we
continue to actively engage the parties involved to the benefit of
all groups.”
“This is a significant achievement and the result of the
collaboration and diligent efforts of all the parties over the last
several months,” Avista Chairman and Chief Executive Officer Scott
L. Morris said. “We look forward to filing the settlement agreement
later in March and affirming the commitments we’ve made to all of
our stakeholders.”
The settlement in principle includes provisions related to
financial protections for the utility and its customers, low income
customers, conservation and the environment.
The settlement in principle also incorporates the use of a
portion of Avista’s deferred federal income taxes for the purpose
of accelerating the depreciation schedule for Colstrip Units 3 and
4 to reflect a remaining useful life of those units through Dec.
31, 2027. This settlement in principle does not reflect any
agreement with respect to the ultimate closure of Units 3 and
4.
All of these items and other terms of the agreement will be
disclosed in detail when the settlement agreement is finalized and
filed for approval by the WUTC, which is expected to be on or
before March 27, 2018.
In addition to Hydro One and Avista, the parties to the merger
proceeding include the Staff of the WUTC, the Public Counsel Unit
of the Washington Office of Attorney General, the Northwest
Industrial Gas Users, the Industrial Customers of Northwest
Utilities, The Energy Project, Northwest Energy Coalition,
Renewable Northwest, Natural Resources Defense Council, Sierra Club
and the Washington and Northern Idaho District Council of
Laborers.
The transaction received approval from the Federal Energy
Regulatory Commission (“FERC”) on Jan. 16, 2018 and from Avista
shareholders on Nov. 21, 2017.
Applications for regulatory approval of the transaction are
still pending with utility commissions in Washington, Idaho,
Oregon, Montana and Alaska. Approval must be obtained from the
Federal Communications Commission. Also required is clearance by
the Committee on Foreign Investment in the United States, and
compliance with applicable requirements under the U.S.
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended,
as well as the satisfaction of other customary closing
conditions.
For further information:
Hydro One
Media:Jay ArmitageDirector, Corporate
Communicationsmedia.relations@hydroone.com, 416-345-6868
Investors:Omar JavedDirector, Investor
Relationsinvestor.relations@hydroone.com, 416-345-5943
Avista
Media: Casey Fielder, Communications Manager
casey.fielder@avistacorp.com, 509-495-4916
Investors:Lauren Pendergraft, Investor Relations
Managerlauren.pendergraft@avistacorp.com, 509-495-2998
About Hydro One LimitedWe
are Ontario's largest electricity transmission and
distribution provider with more than 1.3 million valued customers,
over $25 billion in assets and 2017 annual revenues of
nearly $6 billion. Our team of over 7,400 skilled and
dedicated regular and non-regular employees proudly and safely
serves suburban, rural and remote communities across Ontario
through our 30,000 circuit km of high-voltage transmission and
123,000 circuit km of primary distribution networks. Hydro One is
committed to the communities we serve, and has been rated as the
top utility in Canada for its corporate citizenship,
sustainability, and diversity initiatives. We are one of only five
utility companies in Canada to achieve the Sustainable
Electricity Company designation from the Canadian Electricity
Association. We also provide advanced broadband telecommunications
services on a wholesale basis utilizing our extensive fibre optic
network. Hydro One Limited's common shares are listed on the
Toronto Stock Exchange (TSX:H).
Forward-Looking Statements and InformationThis
press release may contain “forward-looking information” within the
meaning of applicable securities laws. Words such as “expect,”
“anticipate,” “intend,” “attempt,” “may,” “plan,” “will”, “can”,
“believe,” “seek,” “estimate,” and variations of such words and
similar expressions are intended to identify such forward-looking
information. These statements are not guarantees of future
performance or actions and involve assumptions and risks and
uncertainties that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed,
implied or forecasted in such forward-looking information. Some of
the factors that could cause actual results or outcomes to differ
materially from the results expressed, implied or forecasted by
such forward-looking information, including some of the assumptions
used in making such statements, are discussed more fully in Hydro
One’s filings with the securities regulatory authorities in Canada,
which are available on SEDAR at www.sedar.com. Hydro One does not
intend, and it disclaims any obligation, to update any
forward-looking information, except as required by law.
About Avista CorporationAvista Corporation is
an energy company involved in the production, transmission and
distribution of energy as well as other energy-related businesses.
Avista Utilities is our operating division that provides electric
service to 382,000 customers and natural gas to 347,000
customers. Its service territory covers 30,000 square miles in
eastern Washington, northern Idaho and parts of southern and
eastern Oregon, with a population of 1.6 million. Alaska Energy and
Resources Company is an Avista subsidiary that provides retail
electric service in the city and borough of Juneau, Alaska, through
its subsidiary Alaska Electric Light and Power Company. Avista
stock is traded under the ticker symbol "AVA." For more information
about Avista, please visit www.myAvista.com.
This news release contains forward-looking statements regarding
the company’s current expectations. Forward-looking statements are
all statements other than historical facts. Such statements speak
only as of the date of the news release and are subject to a
variety of risks and uncertainties, many of which are beyond the
company’s control, which could cause actual results to differ
materially from the expectations. These risks and uncertainties
include, in addition to those discussed herein, all of the factors
discussed in the company’s Annual Report on Form 10-K for the year
ended Dec. 31, 2017 and the Quarterly Report on Form 10-Q for the
quarter ended Dec. 31, 2017.
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