Hydro One, Avista terminate merger deal

Kristen Nelson

Petroleum News

Hydro One Ltd. and Avista Corp. said Jan. 23 that they have mutually agreed to terminate their previously announced merger agreement.

Hydro One is Ontario’s largest electricity transmission and distribution provider. Avista is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities serves customers in eastern Washington, northern Idaho and parts of southern and eastern Oregon. Alaska Energy and Resources Co. is an Avista subsidiary providing retail electric service in the city and borough of Juneau through its subsidiary Alaska Electric Light and Power Co.

The companies said their decision follows recent orders by the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission denying approval of the merger. After careful consideration and analysis of the likelihood of achieving a timely reversal of those orders, the companies said the boards of directors individually determined that termination of the merger agreement was the best course of action for the companies and their respective shareholders.

As required by the merger agreement, Hydro One will pay Avista a US$103 million termination fee as a result of the termination of the merger agreement.

An application was filed with the Regulatory Commission of Alaska in November 2017 for RCA approval of the acquisition of Alaska Electric Light and Power Co. by Hydro One as part of the merger. Avista notified the commission Jan. 23 of termination of the merger agreement, and requested termination of any further proceedings in the docket.

- KRISTEN NELSON