Settlement Agreement to be filed with the Washington
Utilities and Transportation Commission
TORONTO and SPOKANE, WA, March 16,
2018 /CNW/ - 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.
About Hydro One Limited
We 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 Information
This 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 Corporation
Avista 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.
SOURCE Hydro One Limited