20180126Avista to Staff_DR_059(H1).DOCX

HYDRO ONE LIMITED
RESPONSE TO REQUEST FOR INFORMATION
JURISDICTION:OREGONDATE PREPARED:10/02/2017
CASE NO.:UM 1897WITNESS: Mayo Schmidt
REQUESTER:PUC StaffRESPONDER: Adele PantusaTYPE:Data RequestDEPT: Law
REQUEST NO.:Staff – 059(H1)TELEPHONE: [phone]EMAIL: [e-mail]:Please discuss Hydro One’s acquisitions since its IPO, including small distribution companies and coops, explaining how these acquisitions contributed to a) Corporate and b) provincial strategy. RESPONSE:Since completion of Hydro One Limited’s (“Hydro One”) initial public offering on November 5, 2015, Hydro One completed one acquisition of an electricity transmission company. On October 31, 2016, following receipt of regulatory approvals of the transaction, Hydro One also acquired one electricity transmission company, Great Lakes Power Transmission LP (“Great Lakes Power”), operating along the eastern shore of Lake Superior, north and east of Sault Ste. Marie, Ontario. On January 16, 2017, Great Lakes Power’s name was changed to Hydro One Sault Ste. Marie LP.
Since completion of Hydro One’s initial public offering on November 5, 2015, Hydro One has also reached agreement to acquire one electric distribution company, Orillia Power Distribution Corporation, however this transaction is still awaiting approval from the Ontario Energy Board. Please refer to response to Hydro One’s response to Staff_DR_061(H1) for a description of this transaction.These acquisitions align with Hydro One’s strategic objectives by increasing scale, expanding rate base and generating operational efficiencies through local distribution and transmission company acquisitions.In April 2012, the Ontario Minister of Energy established the Ontario Distribution Sector Review Panel. The expert advice was captured in a report the panel produced called Renewing Ontario’s Electricity Distribution Sector: Putting the Consumer First. In that report they recommended consolidation of the local distribution companies (“LDCs”) into larger electricity distribution companies province wide to drive efficiency and reduce costs to the rate payers across the province. Hydro One made submissions to the report and is contributing to the provincial strategy by driving operational efficiencies and enhanced service offerings to the consumers in Ontario by consolidating embedded LDCs. Hydro One has no obligation to acquire any additional LDCs in Ontario.