Avista-Hydro One merger hearing Monday

State regulators will hold a technical hearing Monday on Avista Corp.’s proposed merger with Hydro One Limited.

The hearing before the Idaho Public Utilities Commission starts at 8:30 a.m. PST in the hearing room at 472 W. Washington St. in Boise. The proceeding is open to the public but seating is limited.

Live audio of the hearing will be provided online or via phone. Visit http://www.puc.idaho.gov/conference.html for both options.

A technical hearing provides an opportunity for intervening parties to present testimony and cross-examine witnesses as the IPUC considers the proposed $5.3 billion merger. The technical hearing is not an opportunity to take public testimony or comment.

Public testimony was taken at three public hearings in North Idaho in mid-June. More than 600 written comments have been submitted in the case. The vast majority of public comments oppose the merger.

The technical hearing had initially been set for July 23 but was postponed after Hydro One’s chief executive officer retired and its board of directors resigned under political pressure from the newly elected premier of the Province of Ontario, the largest shareholder of Hydro One with a 47 percent stake.

IPUC rescheduled the technical hearing after a new board and interim CEO were appointed in August.

IPUC is one of several regulatory entities whose approval is needed for the transaction to occur.

The application submitted by the two companies to IPUC calls for Avista to become a wholly owned subsidiary of Hydro One, the largest electric utility in Ontario with more than 1.3 million customers.

Avista provides electric service to about 378,000 customers and natural gas service to about 342,000. About 130,000 of the electric customers and 82,000 natural gas customers are in Idaho.

Under the terms of the proposal, Avista would maintain its name and corporate headquarters in Spokane. Existing staffing levels and community involvement would also be unchanged.

Several parties to the case entered into a proposed settlement agreement in April that contains provisions intended to shield Avista and its customers from financial risk.

Among the 73 commitments outlined in the proposed settlement are nearly $16 million in rate credits for Idaho customers over five years and more than $5 million to fund energy efficiency, weatherization, conservation and low-income assistance programs over a 10-year period.

A revised list of provisions was submitted on Nov. 16 to "address the impact of the management changes and the potential for provincial involvement in the affairs of Hydro One and Avista."

Seven parties have intervened in the case: Avista Customer Group, Community Action Partnership Association of Idaho, Clearwater Paper Corp., Idaho Conservation League, Idaho Forest Group, Idaho Department of Water Resources, and the Washington and North Idaho District Council of Laborers.

There is no timeline for IPUC to issue a decision.

All documents related to the case, including public comments, the company’s application and all testimony filed, is at: www.puc.idaho.gov

Click on "Open Cases" under the Electric heading and scroll down to Case No. AVU-E-17-09.