20180126Avista to Staff_DR_098(H1) Supplemental.DOCX

HYDRO ONE LIMITED
RESPONSE TO REQUEST FOR INFORMATIONJURISDICTION:OREGONDATE PREPARED:10/16/2017CASE NO.:UM 1897WITNESS:Chris LopezREQUESTER:PUC StaffRESPONDER:Adele PantusaTYPE:Data RequestDEPT:LawREQUEST NO.:Staff – 098(H1)TELEPHONE:[phone]SupplementalEMAIL:[e-mail]:If the Company has engaged in any currency exchange rate or interest rate hedging activities or derivative contracts in the last five calendar years, please:Explain the nature and general conditions of, and provide a copy of, each agreement or contract;Provide each analysis, in electronic spreadsheet format, the Company performed prior to engaging in each of these transactions, including the date each such analysis was performed;Explain how the transaction was settled, for what amount, and in what currency; andExplain how the loss or gain was treated, for example: “the loss of C$1.2 million was recorded as an issuance expense on the next 4.2% series of 30-year bonds.”RESPONSE:Hydro One Limited has not engaged in any currency exchange rate or interest rate hedging of long term fixed rate debt issuance over the last five calendar years.
Hydro One Limited, through one of its subsidiaries, is currently making arrangements to hedge its previously completed issue of C$1.54 billion of convertible unsecured subordinated debentures (that was part of its financing plan for the Avista transaction) into US funds.SUPPLEMENTAL RESPONSE:The hedging arrangement referred to above in the second paragraph was effective October 5, 2017. Please see Staff_DR_098HC(H1) Supplemental Highly Confidential Attachment A for a copy of the said hedging trade confirmation containing the relevant terms.