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HomeMy WebLinkAbout20180705Public Hearing Transcript Vol II.pdft o REC E IVE D BEFoRE rHE IDAHo PUBLIC urIlIrIES coMMIssImE[fi JUL -5 [H l0; 03 IN THE MATTEB OE THE JOINT APPLICAT]ON OF HYDRO ONE LIM]TED AND AVISTA CCRPORAT]ON FOR APPROVAL OF I',IERGER AGREEMENT s e ON offiilffi[NAL MR MR MR PUBL]C HEARING SANDPOINT, IDAHO JUNE 73, 2018 6:00 P.M. PAUL KJELLANDER, PRESIDENT ER]C ANDERSON, COMMTSSTONER KARL KLE]N, DEPUTY ATTORNEY GENERAL APPEARANCES: REPORTED BY: PATRIC]A L. PULLO, CSR Notary Public t Excellence in Court ReTtortittg Sinc'e L970 Coeur d'Alene, ldaho Northern Offices 208.765.1700 't.800.879.1 700 Spokane, Washington 509.455.4515 1.800.879.1700 www.mmcourt.com Boise, ldaho Southern Offices 208.345.9611 1.800.234.9611 Court Reporting o 1 2 3 4 5 A 1 8 9 10 11 72 13 t4 15 76 71 18 79 20 27 22 23 24 25 PROCEED TAKEN JUNE 13, 2078, ]NGS o AT 6:00 P.M MR. KJELLANDER: Good evening, ladies and gentlemen. If we could have you take a seat and discontinue your conversation so we can begin with the proceedings thi-s evening. First of aII, I want to wefcome everyone to this proceedlng. This is a public hearing. My name is Paul Kjellander. I'm a commissioner with the Idaho Public Utilities Commissi-on. Next to me is Eric Anderson, another commissioner. And he and I w11I join our third colleague once this matter is totally submitted to make a final determination on this case. This is the time and place for a public hearing j-n Case No. AVU-E-71-09, AVU-G-17-05, also known as "In the matter of the joint application of Hydro One Llmited and Avista Corporation for approval of merger agreement. " Agaln, the purpose for thls evenj-ng is as a public hearing. And our purpose is to take testimony from the public regarding the case. This is an opportunlty for you, members of the public and who are also Avista customers, to get their statement entered into the record that will- u1timately assist this a Page 2 6/73/2018www. mmcourt . com Public Hearing o o 1 2 3 4 ( 6 7 8 9 10 11 72 13 t4 15 16 \1 18 19 20 27 22 23 24 25 cornmisslon in its deliberation process. As further background, the commission serves in a simil-ar capacity as a district court, and we generally follow distrlct court rules. So we're here this evening to help create a fuIIy developed record. We're not here today to pass judgment on comments or statements made for the offi-cial record. The commissioners serve as judges and accordingly do not answer questions related to the case other than questions regarding procedure. The commissj-on will not begin to delj-berate on the merits of this case until the official record is closed. Additionally, the commissioners, like judges, only speak through their orders and as it rel-ates to any final ruling on this matter. So just l-et me reiterate that we serve as judges and like judges do not comment on the merits of the case while the docket is still- open. Procedurally, as we begin this evening, we'II caII your name from the sign-up sheet. You will then take the stand. And our deputy attorney general, KarI Klein, will ask you to raise your right hand and you'11 be sworn in. Then the deputy attorney general wil-l- ask you a few short questions to get you officially on the record. You will next be al-l-owed to provide your statement for the record. And following your statement Page 3 6/13/2078 o www. mmcourt . com Public Hearing t I 1 2 3 4 5 6 1 d 9 10 11 72 13 t4 15 76 71 18 19 20 27 22 z3 24 25 there might be questions from some of the legal counsef that is present tonight representing some of the parties, but that's not very likely. Al-so, there is an opportunity for the commissioners to ask questions, but typically we generally don't ask any questj-ons. That would fal-l under the category of cross-examination. We tend not to cross-examine public witnesses. Usually, if there are any questions, it's just a follow-up of if people have questions about service, we may ask additional questions about outages or things that may occur in that capacity. As far as your statement tonight, please remember that the decorum for this proceeding is similar to a courtroom. Your comments should be directed to the commissioners and not to the members of the audience. For those in the audiencer we ask that you refrain from reacting to any testimony while it's being provided, that means no clapping or other verbal- comments. And we appreciate your willingness to respect this process. Since our cases are judicial in nature, we have a court reporter. Patty Pullo this evening w111 be serving in that capacity. She'11 make the official transcription for tonlght's hearing. The transcript is necessary because 1n our quasi judicial rol-e, we must base our decisions on the official record and that Page 4 6/73/2078 t www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 1 9 10 11 72 13 T4 15 15 t1 18 79 20 2t 22 24 25 record is also slgnificant ln the event that our decisions appeal to the Idaho State Supreme Court. So at this point I'd like to take the appearances of the parties. And I bel-ieve we have counsel for Avista. MR. MEYER: Yes. Thank you. David Meyer appearing for Avista. And wefcome. MR. KJELLANDER: Thank you, David. I know you also have some other representatives from the company. If at a break there are any questions of the company specifically, f 'm sure they'1I be availabl-e if anyone has a specific question for Avista. Is that correct? MR. MEYER: That's correct. Thank you. MR. KJELLANDER: Thank you. Is there anyone representing Hydro One? MR. LEVITAN: Yes. Daniel Levitan, Hydro One. MR. KJELLANDER: And, Daniel-, you're not an attorney, correct? MR. LEVITAN: Correct. MR. KJELLANDER: So there will be no cross- examination questions from you this evening. Thank you. For commission staff we have Karl- Kl-ein. MR. KLEIN: Yes, Karl Klein. MR. KJELLANDER: And Karl- is the deputy attorney general with the Idaho PubIic Utilities o Page 5 6/73/2018www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 7 I 9 10 11 t2 13 14 15 16 71 18 79 20 21 22 23 24 25 Commission. Anyone representing the Idaho Forest Group? (No response. ) MR. KJELLANDER: Cl-earwater Paper Corporation? (No response. ) MR. KJELLANDER: Community Action Partnership? (No response. ) MR. KJELLANDER: Idaho Conservation League? MR. OTTO: Yes, Commissioner. Ben j ami-n Otto with the Idaho Conservation League. MR. KJELLANDER: And I know you're an attorney representing the Idaho Conservation League. Do you j-ntend to ask any cross this eveni-ng? MR. OTTO: No, sj-r. Just here to listen. MR. KJELLANDER: Thank you. And anyone representing the Washington and Northern Idaho District Council- of Laborers? (No response. ) MR. KJELLANDER: Okay. Thank you. So are there any other parties that we may have missed? If not, let's then begin with our first witness this evening. And T apologize in advance if I shoul-d accidentally stumbl-e over the pronunciation of your name. The f irst one I think I ' l-l- get right. Lewis Hodge. Page 6 6/73/2078 o www. mmcourt. com Publ-ic Hearing o 1 2 3 4 5 6 1 B 9 10 11 72 13 14 15 16 71 1B 79 20 27 22 23 24 25 to the MR. KLEIN: Will you you swear or affirm that the give is the truth, the whole truth? truth and nothlng raise your testimony right you' re hand. about but Do MR. MR. and spe1l your MR.HODGE: L-e-w-i-s. Last name HODGE: I do. KLEIN: Will you please state your name last name for the record. MR. MR. MR. MR. Priest River. MR. MR. MR. MR. www. mmcourt . com PubIic Hearing KLEIN: HODGE: KLEIN: HODGE: Lewis Hodge. First name is Lewis, is Hodge, H-o-d-g-e. And what's your address? My Address. 128 Morning Star Mountain Road, Are you an Avista customer? f'm on Northern Lights. Okay. Go ahead. Okay. So f can say whatever I o KLEIN: HODGE: KLEIN: HODGE: want? MR. KLEIN: Yes. MR. HODGE: A11 right. I have two objections to this. I find it ludicrous that we're allowing a foreign company to buy any quantity of American infrastructure. THE PUBLIC: We lost you. o Page 1 6/73/2078 o o o 1 )L 3 4 5 6 "7 6 9 10 11 72 13 74 15 t6 t7 18 19 20 2! 22 23 24 25 MR. KJELLANDER: The mic is off. THE PUBLIC: We can't hear him. (Brief pause. ) MR. HODGE: Okay. Is that better? THE PUBLIC: Yes. MR. HODGE: Number one, I find it l-udicrous that we I re allowing a foreign company to borrow to buy any part of America's infrastructure regarding electricity. And number two, Hydro One is a cl-imate change protocol company. And to me it smel-l-s like cl-imate change coming in the back door, something that the people, the Congress and the President have al-l- rejected. And it's a way of getting carbon tax credits on the back of taxpayers here. I don't think it's right. So I'm against it. MR. KJELLANDER: Thank you for your comment this evening. MR. HODGE: Thank you. MR. KJELLANDER: AIso thanks for coming out. Tom Horne. MR. KLEIN: Raj-se your right hand. Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. HORNE: Yes, I do. MR. KLEIN: Would you please state and spell www. mmcourt. com Public Hearing Page I 6/73/2018 t t 1 2 3 4 5 6 7 9 10 11 72 13 74 15 76 71 18 79 20 27 22 23 24 25 your name. MR. HORNE: My name is Tom Horne, H-o-r-n-e. MR. KLEIN: And whatrs your residence address? MR. HORNE: My residence address 1s in Nine MiIe Fall-s in Washington. But I'm a Avista customer. I was passing through, and I heard about this. I've been an Avista customer for 41 years. And I object to this dea1. MR. KLEIN: Go ahead. MR. HORNE: Okay. One of the primary objections to this deal that I have that I think is that I think it's been done in bad faith. We had the the Ontario residents' power bills have been about were about half of Avista's bills around 2000. Now they're approxj-mately twice what Avista bj-l-Is are. So this fourfold increase in fairly short time, you know, when you considering been a I've been a customer for 47 years has outraged the people of Ontario. And as a result they threw out the liberals. And they they've elected a new party to control the Ontario government, Progressive Conservatives. To me that should be the oxymoron party, but other than that. And the the head of the Progressive Conservatives says for months said that what he wants to do is fire the CEO of Hydro One. Now, he can't quite Page 9 6/73/2078 t www. mmcourt. com PubIic Hearing o o 1 2 3 4 5 6 1 8 9 10 11 t2 13 t4 15 t6 t1 18 79 20 27 22 23 Z4 25 do that. He has to fire the entire board, get another board appointed and then they can fire the head of Hydro One, if you can get the right people on the board and do it, which he probably can. So anyhow, this negotiation has been going on while that situation has been in p1ace. Hydro One didn't pull out in respect to the desires you know, the the apparent desires of the people that own most of Hydro One. The people of Ontario own 41 percent of Hydro One at this particular moment. And they've expressed themsel-ves and kicked out the manager or kicked out the the leadership that was for or that was supported by this current CEO of Hydro One. Al-so, this deaf has been in progress since fast summer. There was an SEC filing in October. The SEC f iling detai1ed 50 let' s see 50, 515, 000 severance package that would be shared by 13 Avista executives. They l-ist it by name exactly how much each one is going to get. I haven't seen a thing about that in the paper. I haven't seen a thing about it in the UTC hearings in Washington. That that is a sa.l-ient fact that these fol-ks, in my opinion, were bribed to sel-l- this company. The the new premier of Ontario feels the same way. He was outraged when he first heard about Page 10 6/73/2078 o www. mmcourt . com PubIic Hearing o t 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 76 77 18 79 20 2t 22 Z5 24 25 this. He didn't hear about it until May. So this has been kind of under the radar. So, anyhow, I object. I think the the managers of Hydro One have broke faith with their people, the people of Ontario who own majority or who are the largest owner of that thing. And I think that the managers of Avista have clearly been bribed. This is not going to benefit the ratepayers of Avista. Avista is a pri-vate company, yeah. But it's a monopoly, regulated by you folks and paid for by us, and you too probabJ-y. But, anyhow, I appreciate you taking these other factors into consideration when you make your decision. Thank you. MR. KJELLANDER: Thank you. We appreciate your comments. I wil-l call next Patrick Cave. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. CAVE: I do. MR. KLEIN: Wil-l you please state and spe11 your name. MR. CAVE: Yes. My name is Patrick Cave. P-a-t-r-i-c-k. My last name is Cave, C-a-v-e. MR. KLEIN: And what's your address? o Page 11 6/73/2078www. mmcourt . com Publ1c Hearing o o 1 2 3 4 5 6 1 o 9 10 11 72 13 74 15 16 l1 18 19 20 2L 22 23 24 25 MR. CAVE:. 2502 Sunnyside Road, Sandpoint. MR. KLEfN: Are you a customer of Avista? MR. CAVE: Yes, electric electric customer. MR. KLETN: Please go ahead. MR. CAVE: I'm here today to support the comment that I had registered onto the Avista onto the IPCU website on June 8th. And it's under the title of "Underserved and Unserved Natural- Gas Customers of Avista Util-ities. " (Brief interruption. ) MR. CAVE: I'm here to support the comment that I had registered onto the website for the Idaho Publ-ic Utilities Commission on June 8th. And that comment is under title of "Underserved, Unserved Natural- Gas Customers of Avista Util-lties. " And my concern as detail-ed here is referencing a similar scenario that l-ald out in New Mexico when New Mexico Gas was purchased by an entity, where difficult-to-serve clients, unserved/underserved cl-ients, were then allotted a $10 million stipulation in the purchase agreement to set aside those funds for future potential customers. And Irm asking that that same type of stipulatj-on be considered during the procurement of Avista by Ontario One Hydro One. Thank you. Page 72 6/13/2078 o www. mmcourt. com Public Hearing o 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 1b 71 1B 19 20 2L 22 23 24 25 MR. KJELLANDER: Thank you. Let's call Angelo Lonzisero. MR. KLEIN: Do you swear or affirm that the testj-mony you're about to give is the truth, the whole truth and nothing but the truth? MR. LONZTSBRO: I do. MR. KLETN: Pl-ease state and spell your name. MR. LONZISERO: Angelo Lonzisero, L-o-n-z-i-s-e-r-o. MR. KLEIN: Whatrs your address? MR. LONZISERO: 24 Humbug Lane, Sagle, Idaho. MR. KLEIN: Are you an Avista customer? MR. LONZISERO: No, f'm not. MR. KLEfN: Okay. Go ahead. MR. LONZISERO: So in looking at the proposed merger, we're looking at Hydro One, an Ontario-owned company. We're looklng at a company who's in financial- straits. We're looking at a company who has negative investment house ratings. Werre looking at a company with infrastructure that's falling apart. They have where liability problems. Werre looking at a company that's raised its rates to such astronomical l-evel-s that they're cutting people off by the hundreds of thousands f or nonpayment of their bil-l-s. So I don't understand in my mind why Avista wou1d like to tie itself to a failing o Page 13 6/73/2078 t www. mmcourt . com Publ-ic Hearing I 1 2 3 4 5 6 7 8 9 10 11 1,2 13 74 15 t6 t1 18 t9 20 27 22 23 24 25 company and why j-n God's name any of the jurisdictions, Idaho, Montana, Oregon, Alaska, Washington, and the federal government woul-d allow thls to happen. In your decislon your decision is transitory. There's a future, and we don't know what the future is going to be. You can't guarantee us that the rates won't go up. You can't guarantee us that the company is going to be sol-vent. For all we know, Hydro One could go bankrupt. They could take the assets of Avista and fil-e them into the bankruptcy. We coufd lose al-l the lnfrastructure here. We're talking about 15 hydroelectric dams that Avista owns. Fifteen. That's the majorlty -- probably the majority of or a big chunk of all the power generated in the Northwest. Now you sit here. There's only two dams or three dams in that reside in Idaho. And I can understand that. But we have to l-ook at the overall- scope of this. The scope is we have a foreign entity comj-ng into the United States, coming into these jurisdictions, taking control of this company. For what reason we don't know. It's not clear to us. Avista and Hydro One say itrs, oh, economy of scal-e. We're going to save so much money. How much money can you save behind a conductor wire in a bigger quantity? Not much. So now we have a company thatrs going to pay t t www. mmcourt . com Public Hearing Page 14 6/73/2018 o 1 2 3 4 5 6 1 B 9 10 11 12 13 74 15 16 l1 18 19 20 27 22 23 24 25 $51 mi11j-on to the board of Avlsta, go-away money. Now you have the rate the sharehol-ders, the Avista shareholders. They're getting a 20-some-odd-percent bump on their stock when they sell it back to the company. Everybody is getting money here, but nobody is Iooking at the big picture. This is what we have you for. You are supposed to look out for the ratepayers, the citizens of Idaho. We do not want this merger to go through. That's all I have to say. MR. KJELLANDER: Thank you for your testimony this evening. Let's call Andrew Scott. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whol-e truth and nothing but the truth? MR. SCOTT: I do. MR. KLEIN: Pfease state and spell your name. MR. SCOTT: Flrst name Andrew. Last name Scott, S-c-o-t-t. MR. KLEIN: And what's your address? MR. SCOTT: 2109I Highway 47, Blanchard, Idaho t vTp MR. MR. \4p KLEIN: SCOTT: KLEIN: SCOTT: Are you I am. PIease Okay. an Avlsta customer? go ahead. I woul-d like to first statetPage 15 6/73/2078www. mmcourt . com Public Hearing o 1 2 3 4 5 6 1 8 9 10 11 72 13 t4 15 16 71 1B 19 20 21 22 23 24 25 that I'm opposed to this merger. There's a lot of uncertainty. Irve spent the last 30 years working on hydroelectric projects around the entire United States. I understand how they're regulated. I understand the importance of controlling the water. And what we're looking at here is a Canadj-an company coming in to have potentially control of the water that comes in Idaho through the Clark Fork River. We al-so have to take in account the Columbia River Treaty that 1s being negotiated with Canada at the same time. And so I think what we're seeing in ldaho and Washington is a pinch from Canada looking at our waLer rights. Water in north Idaho and a1I of Idaho is one of our most important resources that we need to protect for the citizens of Idaho and this country. A1so, f have a real problem with, obviously, the golden parachute that's being given to the executives of Avista. I think as a customer for 20 years to see my rates go up that it's just absolutely ludicrous that that much money should be paid to the upper management of Avista. Lastly, I have a real problem with some of the intervenors and some of the ideas that they have, particularly the Idaho Conservation League who states that their goal is to make Idaho a coal-free state. o o Page 76 6/73/2078www. mmcourt . com PubIic Hearing o o 1 2 3 4 trJ 6 1 B 9 10 11 72 13 74 15 76 71 1B 19 20 2t Z3 24 25 Which f think we depend on coal- power generated for the entire country also Idaho. And I have a real concern that in some of their comments that they have stated that they would l-ike to that the staff of the Idaho Publ-ic Utillty Commissj-on has created an Idaho stakehol-der group that w1l-l allocate funds to the tune of 5.3 million over ten years to new conservation programs. I don't think any of the citizens are inc]uded in this. I'd like to fuIIy understand from the PUC how this group was created, who's on it and how the decisions are made to allocate these funds. So I think it's been kind of held from the public and the public doesn't understand this and shoul-d be made aware of this. Other than that, like f said, I am opposed to this merger. Thank you. MR. KJELLANDER: And thank you, Mr. Scott, for your testimony this evening. Larry Spencer. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but. the truth? MR. SPENCER: I do. MR. KLEIN: Pl-ease state and spe1I your name. MR. SPENCER: Larry, L-a-r-r-y, Spencer, S-p-e-n-c-e-r. Page 77 6/13/2018 o www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 1 I 9 10 11 72 13 t4 15 t6 I1 18 19 )i 2l 22 Z5 24 25 MR. KLEIN: And what's your address? MR. SPENCER: My address is 605 East 17th, Post Ea1Ls, Idaho. MR. KLEIN: Are you a customer of Avista? MR. SPENCER: Yes. MR. KLEIN : Pl-ease go ahead. THE PUBLIC: CouJ-d you speak up, please. ' THE PUBLIC: We're having a hard time MR. SPENCER: Is this MR. KLEIN: Is that on? (Brief interruption. ) MR. SPENCER: I would ask that if the audience can't hear me that somebody just says "fouder" back there so I can remember to get closer to it or something. I have a couple of questions. First of all, there's three board members. The l-ast one I didnrt catch why she's not here today or MR. KJELLANDER: Krlstlne Raper is has another appointment. She was at the meetings last night, but she had to return to Boise. She wil-l- be reviewing the transcript. MR. SPENCER: Okay. And then also T had a question for the attorney. With regard to the Supreme Court reviewing or having the final- say on the decision Page 18 6/73/2078 o www. mmcourt . com Public Hearing I I 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 76 71 18 19 20 2\ 22 23 24 25 here, in land use issues the Supreme Court has that it does not substitute itself -- the court substitute itself for the hearing body and will substitute its opinions or decisions. Is that here or decided does not not the case we take MR. KJELLANDER: Those are questions that can respond to on the break. We're here tonight to your testimony. MR. SPENCER: A11 right. MR. KJELLANDER: Thank you. MR. SPENCER: So selling Avista to Hydro One woul-d be a boon for Avista shareholders. And evidently the (Brief interruption. ) MR. KJELLANDER: Just a moment. If we could just ask everybody to please sil-ence their technology that would be somewhat helpful for this evening since we're having a little bit of diffj-culty with the microphone. I'm sorry to lnterrupt you. MR. SPENCER: No problem. MR. KJELLANDER: You keep getting started and we keep interrupting you. I sincerely apologize. MR. SPENCER: (Continuing. ) who would be paid significantly more than their stock is worth but not such a good deal for Avista consumers. How bad? Page 19 6/73/2078 o www. mmcourt . com Publ-ic Hearing o o 1 2 3 t 5 6 1 B 9 10 11 l2 13 t4 15 16 71 18 t9 20 2L 22 23 24 25 Well, nobody knows yet. The Ontario government who owns 41 percent of Hydro One has been charging ahead wlth the green energy mandate driving the price of el-ectricity through the roof. I understand itrs come back down a litt1e bit, but they've had some real- problems with management and pricing up there. As mentloned earlier, it cost the Liberal Party in Canada dearly at the election. And so now we don't know exactly what's going to happen. And one concern is that the financlal stake that Hydro One hol-ds could be significantly impacted by the change of leadership of Ontario. Eor example, the because of the results of that election, a day or two later there was a story or a couple days ago there was a story how carbon credits in Cal-iforni-a had fal-len in their value by about 25 percent. So it has there's a l-ot of ramifications that may impact the financial- heal-th of Hydro One. I have a concern and I don't know if it's a valid one but it's a concern of what happens j-f the government mandates in the future certain programs l-ike the instal-Iing throughout the Hydro One's -- al-l- of Hydro One's customer service, internationally included, of carbon scrubbers that cost bazil-lions of dol-l-ars. Is that something that we wil-l be able to say nor w€'re not Page 20 6/73/2078 o www. mmcourt. com PubIic Hearing o o 1 2 3 4 5 6 7 9 10 11 72 13 t4 15 L6 77 18 19 20 2t 22 23 24 25 going to be a part of? I don't think we do. I think we got to go along for the ride, and I have concerns about that. This isn't a business like a 25- or a 30-year lifespan sawmil-l- that we're entering into some kind of an agreement with Canada. This is the lifeblood, not just for the water but for the electricity, of our economy. Ten years ago nobody had heard of Bitcoins or Bitcoin mining. Now we find that they're uslng Bitcoin mining as a as a occupation in areas where there's cheap electricity, because it uses a l-ot of electricity. We don't know what the future's going to hol-d. But this is a forever deal-. And I'm a little bit concerned that some point in the future we're going to l-ook back on this a little bit like Russia l-ooked back on having sold Alaska to us $Z mill-ion after gold got discovered. V[e can't undo this deal any more than they could. Itrs a permanent one. f 'd tike to tal-k about what happens when stakeholders like the ratepayers do not have a seat at the table. Now, I realize that the PUC is stil-l- going to be involved. But when you remove the decision making from a regional board who lives here in the community to a dlfferent country that their val-ues might not be the Page 27 6/73/2078 o www. mmcourt. com PubIic Hearing o o 1 .) 3 4 5 G 1 o 9 10 11 t2 13 t4 15 t6 t't 18 19 20 27 22 23 24 25 same as ours, you might find that we get the short end of the stick in the future. And I woul-d point to what's happening in Colstrip as part of this deal-. In CoIstrip, Montana, Avista was planning to shut down essentially the town, which is basical-ly the mine and al-l- the jobs. But they were going to shut it down in 2)3)-something. As part of what the Idaho Conservation Group has put together, there's kind of an unofficial deal that now the town mine is going to be shut down in nine years. And I woul-d hold that that's because they don't have a seat at the tabl-e, and the decisions are not theirs to make. Theyrre simply along for ride. And I believe that that's the same way we'11 be along for the ride in the future. One woul-d think that if losing control of the el-ectric grid and generation facility is such a bad idea the State legislature would make it iIIegaI. It turns out they did, in a way. They passed a law that I would like to point out that the law that you're following the PUC is following as this process which mandates that they have to ensure the rates aren't going to rise and there's public good, that sect j-on of l-aw is Idaho Code 61-328. It was passed in 796L by the Idaho legislature. It was passed together with 6l-327 and severaf subsequent pieces. And those are the ones I'd o Page 22 6/13/2018www. mmcourt . com Public Hearing o 1 2 3 4 5 6 7 I 9 10 11 t2 13 14 15 76 71 18 t9 20 2T 22 23 24 25 like to draw attention to because I don't think the public understands them. The l-aw immediately preceding that, the first in the section which was passed at the same exact time that they mandated public good has to be considered, was kind of harsh on the idea of seJ-ling Idaho power grids away from Idaho. In fact, they made it a felony. If Avista were to try to make this sale to the city of Liberty Lake, I'11- get to what wil-l- happen, but it's a crime for a city in Washington state to purchase or purchase as part of a group Avista. The first section of the law is a very hard-to-read piece. Itrs 330 words in one sentence. It has 45 or 46 commas and four semicolons. ft's not an easy one to get through. So what I did was I boiled down the top of j-t. The heading is call-ed "Electric utllity property acquisition by certain public agencies prohibited. " And I took the first part of that and took out some of the superfluous language and just I hiqhlighted part of it. So I'm going to kind of read it. It reads a l-lttle bit better, but i-trs the same thing. It says, No titl-e to or interest in any public utility property located in this state which is used in the generation, transmission, distribution or supply of o o Page 23 6/73/2018www. mmcourt . com Public Hearing t o 1 2 3 4 5 6 7 I 9 10 11 72 13 74 15 !6 !1 18 19 20 2L 22 23 24 25 el-ectrical power and energy to the public shal1 be transferred or is transferable to any government or municipal corporation, quasi municipal corporation, et cetera, et cetera, organized or existing under the laws of any other state. Now, the argument could certainly be made that Ontario is not another state. But I think the purpose of what they were saying here appJ-ies very well and that is we don't want decisions affecting our critical infrastructure of electricity made in an area where we lack control. So there's some ramif icati-ons that are the most severe f've ever seen the Idaho legislature prescribe from what happens if somebody conspires to sell- Avista's dam to a power company 1n Liberty Lake, for example, thatrs owned by a government in some other portion. First of all, again it's a felony. Secondly, the attorney general is ordered to confj-scate the property for the State of Idaho. The word they use is escheat. But itrs basically if you if Avista were to sell to a clty outside of Idaho, they l-ose all- of their Idaho assets that were a part of that sale. And that's a pretty significant position. It's not just don't do thls. ft's we really mean don't do this. I believe that if they had considered the idea Page 24 6/73/2078 t www. mmcourt . com Publ-ic Hearing o o 1 2 3 4 5 6 1 I 9 10 11 t2 13 t4 15 16 77 18 19 20 2L 22 23 Z4 25 that we might one day be facing a foreign government and it could be China, it could be Canada, it could be Iraq wanting to buy our power grids that they would have said no, that's not okay too. But I think that that wasn't real-Iy on their radar. But what they were saying is we want the control to stay under the l-aws of Idaho or at l-east, in this case, where it's regional. There's a movj-e that f appreciate f rom -- Pierce Brosnan had a saying in this movie. He was being asked by hls therapist, Under what cj-rcumstances could a woman trust you? He thought about it and he said, I guess if her interests weren't too divergent from those of myself. And my concern is that our interests here are pretty closely aligned with those of Spokane and more So, of course, than King County but far less so than those of another country. f'm going to just recap this, look through here for just a second, see if there's anything that I've that I wanted to say that I missed. So anyway those are yeah, that's that's essentially what I came to tefl- you. And I'm concerned oh, there's one other thing. The mandate that you do something that's in the public Aood came from the legislature in 1951. They said it must be in the pub11c j-nterest. And at the same time they passed o Page 25 6/73/2078www.mmcourt.com Pubflc Hearing o o 1 2 3 4 5 6 7 8 9 10 11 72 13 t4 15 16 t1 J-O 79 20 2t 22 Z5 24 25 that they passed this law. So I woul-d hol-d that while the idea of what's in the public good might be nebulous, maybe one person thinks itrs okay to raise rates if we're going to help the poor or whatever, I wou1d hol-d that the legislature had a pretty good idea that this was absolutely, definitely not in the public interest. Thank you. MR. KJELLANDER: Thank you. And thank you for your testimony. I apologize for the microphone issues. Let' s call- next Jef f Ty1er. MR. KLEIN: Can you raise your right hand. Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. TYLER: I do. MR. KLEIN: Would you please state and spe1I your last name. MR. TYLER: MR. KLEIN: MR. TYLER: Idaho. MR. KLEIN: MR. TYLER: MR. KLEIN: MR. TYLER: Jeff Tyler, T-y-f-e-r. And whatfs your address? 5892 Harbor Drive, Coeur d'Alene, Are you an Avista customer? Yes, I am. Please go ahead. I brought up a littl-e bit ago and Page 26 6/73/2078 o www. mmcourt . com Publj-c Hearing o o o 1 2 3 4 5 6 1 8 9 10 11 72 13 L4 15 76 71 10AU 19 20 2t 22 24 25 left this on the table for you guys. It's not from me. The name up on top is Dave Bol-eneus. He's a geologist that has been informing me and some others about what's happening here. And I might touch on that a little bit. I, however, dil kind of dj-scouraged. I just got a e-mail- f rom an Avista an Avj-sta e-maiI. And they're basically saying that al-l- the PUCs are agreed with this except for three today, the Oregon, Washington and ldaho. And then at the bottom it says, "Perhaps you are aware of individuals who have been advocating to have organizations and public entities oppose the merger. Their claims are predicated on very inaccurate and incomplete informatJ-on, and they proffer concfusions that cannot and wil-l- not come to pass. " So it kind of gives me an idea of the attitude from Avista. How many of you have heard of Uranium One? Uranium One was founded by the same guy who founded Hydro One. Guy's name is Maurj-ce Strong, a Canadian who's a high school dropout. And he's been called the father of the climate change. Hers the one who started this as part of the Paris climate treaty. And so this to me this whol-e thing that we're going through, it's not your typical merger and acquisition because if i-t was I wouldn't be here. The reason lrm here is because me and a lot of www. mmcourt . com Public Hearing Page 21 6/73/2078 o o 1 2 3 q q 6 1 8 9 10 11 t2 13 t4 15 16 7'l 18 19 20 27 22 Z5 24 25 people I know I'm al-so on the Republican Central Committee. And we we bel-ieve that Idaho shoul-d not be controlled by another country or another state. These other two out of the three, I've been tol-d the only hope we have of stopping this is the Idaho PUC. We all know the politics in Oregon and Washlngton. We know that the governor in Washington wants this to happen. He's behind the cl-imate change and the .Paris accord. So what the big picture here is is we're appealing to you, our Idaho board, knowing that you were appointed by a republican governor j-n a republican state to be the ones with the backbone to stop this. Because otherwise it 1s l-ost and and going in there's plenty of people that you've heard from and plenty of evidence, even on this paper, of how bad this is. It's basically a ruse to monetize carbon. And it's been going on around the world. ft's a UN-contro11ed thing. And Maurice Strong is all about the UN. He's the one that dreamed up the global warming idea. The CEO of Ontario Hydro UN UN consider chairman of UNrs cl-imate summit in Rio de Janeiro to convince governments of cl-imate change in the use of fossil fuel-s. He claims climate catastrophe to facil-itate g1oba1 governance by UN. So basically this Hydro One is just a you know, it brought to for Page 28 6/73/2078 o www. mmcourt . com Public Hearing I t 1 aZ 3 4 5 6 1 a 9 10 11 t2 13 t4 15 76 L1 18 19 20 27 22 23 24 25 f ruition by UN climate-type rul-es. Ontario had the lowest energy costs in Canada. And so it was the perfect place to go in and find room to raise rates. Just as here in northern Idaho we've been among the cheapest power in our country. So why -- so this is the perfect place to bring in the Paris climate accord. Now, a l-ot of the rates that that they're paying in Ontario are due to a g1oba1 adjustment charge of 70 percent. So when people get a bill in Ontario, you have your regular charge then you have your global adjustment charge. That goes along with this whole climate change ruse. So that's why the bills have skyrocketed. And somebody mentj-oned that the prices have come down recently, in the last couple years. The reason why the prices came down is because they borrowed against their company to l-ower the rates. So now they're in massive debt of bill-ions of dol-l-ars because people were in such in arms about their rates skyrocketing that they're actually borrowing to get people's bill-s down. Thatrs another ruse to try to sati-sfy their customers. But they're getting more increasingly in debt. That is what they're going to bring to Idaho. I don't thlnk so. I know that to me and al-I my fellow Page 29 6/73/2078 I www. mmcourt . com Publ-ic Hearing o o 1 2 3 4 5 6 1 o Y 10 11 72 13 74 15 76 71 18 79 20 2L 22 23 24 25 republ-icans in the state will fight this. If we need to even work towards, you know, having elections for utility commissioners or somethj-ng. I mean, this is going to be fought in Idaho by the people. And what we're asking you to do is to stand with the people of Idaho, the ones the republicans that I assume you guys are, even though all the rest of the states and the national- and international- interest is to go along with climat.e change. There's plenty of science that says carbon dioxide , CO2, is actually good for the planet. You hear from the other side that, oh, this is the sky is fa11ing. Millions of years ago there was higher parts per million of carbon dioxide than there is now. Werre actually running out of carbon dioxlde over the last hundreds of years. There's some giggles by some environmental-ists here. But that is scientific fact. There's scientists from NASA that will back up all- this kind of science. They have their own scientists that that support their side, and we have our side. Of course, like I said, Oregon and Washington woul-d think that I was really out of my mj-nd, but but I feel l-ike Irm a common-sense guy. And another thing about CO2 that is proven, that I even learned in elementary school-, was that CO2 Page 30 6/73/2078 o www. mmcourt. com Public Hearing o 1 2 3 4 5 6 't I 9 10 11 !2 13 l4 1tr]J t6 L1 18 79 20 2t Z5 .ALA 25 is good for plants and grasses and bushes everything. It's good for greenery. The more CO2 you have the greener things are going to be. You take the CO2 out and it kil]s. It has been killing trees now because there's not as much CO2 as there used to be. And so f I d l-ike to hear the gigglers, you know, what they think about that. And also that the trees and al-l those are what takes the CO2 and turns it into oxygen. So you take CO2 out of our atmosphere then you're also taking oxygen out. It's just a it's just a big, huge political ploy by UN, one worl-d government T guess you can sdy, to push this agenda. But Idaho needs to be the one to stop it. We're the only chance of stopping it. We can go up, I guess, and try to convince Trump and our congressmen and stuff if we have to. But we will fight this. Just an example of some some people that have had a hard time. There's fifty 50,000 households were disconnected in Ontario due to high cost of electricity. Dj-sconnects grew 79 percent in three years. They're going off grid and using generators and barbecues because they can't afford their electricity bilI. Parents are having to choose between feeding their kids or paying their power biII. So I don't o o www. mmcourt . com Pubfic Hearing Page 31 6/73/2078 o o 1 2 3 4 5 6 7 9 10 11 72 13 74 15 76 l'7 18 t9 20 27 22 23 24 25 know this is not even reaIly a political party thing. f don't know anybody from the other side that is would, you know, want to consider feeding their kids or paying their power bill. I mean, that's kind of overall- everybody. I know it sounds good right now because theyrre saying for the next two, three, four, five years or whatever that our bill-s aren't going to go up. WeIl, that's because they're buyi-ng it down. They've committed I forgot how many mill-ion dol-lars they're going to buy our rates down for a whil-e. Itrs called a l-oss-leader when you're in economy class. Grocery stores do it. You know, the ketchup that we're going to knock a buck off, come in and buy this ketchup. And then you buy all the other products while you're there, and they jump those rates up. They've got a loss-leader. You know, we're going to l-ower your rates for a while. Oh, okay. Then j-t's going to skyrocket after those years are up. That's what their history is. And that's that's what we have here in this case is history. We have the history of what's been happening And the gentleman earlier mentionedwlth Hydro One. that, you know, there in Ontario theyrve kicked out the woman premier that she stated we have it on o Page 32 6/73/2018www. mmcourt . com PubIic Hearing o o 1 2 3 4 5 6 1 I 9 10 11 L2 13 74 15 16 71 18 79 20 2t 22 23 24 25 I've seen a video where she stated that Ontario would run Hydro One and not all-ow Avlsta or America to run Hydro One, that they in Ontario would. And she got beaten by the Ford gentleman. And that was his platform. I saw a video where Ford went to speak in front of a crowd, and the whole room was filled wlth "No Hydro One" signs. And he got elected. And the first time in 15 years they kicked the liberals out and put in the Progressive Conservatives. That same thing is golng to happen here if you guys approve this. And, like I said, you guys are the only ones that can stop it at this point. So that's rea1Iy, you know, my p1ea. I know last night I heard in Moscow the room was full of the fol-ks from the Idaho Conservation League. And so the majority was in support of this merger. And I, too, am concerned that, you know, why did it says right here in this decision memorandum from a month ago the some of the intervening parties along with this deal is Tdaho Forest Group, Clearwater Paper, Idaho Conservation League, the Community Actlon Partnership, the Association of Idaho and the Washington and Northern Idaho District Council of Laborers intervened as parties. Wasnrt Colstrip power or Colstrip town wasn't on here. But a conservation league is on here. So it klnd of tel-l-s you the flavor of how Page 33 6/73/2078 a www. mmcourt . com PubIic Hearing t I 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 t6 t1 1U t9 20 27 )) /< 24 25 they want this to go. Coal is still going to be shipped through here to China. China is going to keep making new coal plants every day. We've got ways to make coal cleaner. But what Hydro One is doing is they're taking the coaf power and they have a lot of nuclear power. They want to shut down the coal power, and they want more they're puttlng up thousands of windmills, killing thousands of eagles. And they're al-so putting up thousands of arrays of solar. But the funny thing about the sofar and the windmills is they onJ-y work at when therers sun and when there's wind. And what they're doing up there is when they have a lot of wind and the., don't have enough people to use that power, they're practically giving it away across the border to New York state. And but the people in Ontarlo are having to pay for all that. New York state's getting it for free. And that's harming those Hydro One fol-ks up there too. I could go on and on. There's so many different reasons to not do this. And I'm -- and you're probably golng to have to hear from me, unless f can't speak, tomorrow night because I'm goJ-ng to be in the Coeur d'Alene one tomorrow night. But that's just my plea. And I think the plea of a l-ot of people I know is that you guys are the only ones that are going to be Page 34 6/73/2078 t www. mmcourt . com Public Hearing o 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 16 71 18 t9 20 2t 22 )? 24 25 able to stop this from happening. And as republicans I would -- I would hope that you guys would be the ones to do it. So thank you very much. MR. KJELLANDER: Thank you for your testimony this evening. Let's cal-l- Trevor Anderson. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whol-e truth and nothing but the truth? MR. ANDERSON: I do. MR. KLEIN: Pl-ease state your name and spe1I your last name. MR. ANDERSON: Trevor Anderson, A-n-d-e-r-s-o-n. f'm going to keep it short and sweet. MR. KLEIN: Would you give me your address l- an MR. ANDERSON: Oh, yeah. 774 Hickory Street here in Sandpoint. MR. KLEIN: And then are you a customer of Avista? MR. ANDERSON: Yes, I am. MR. KLEIN: Please go ahead. MR. ANDERSON: Irm going to keep it short and sweet. Everyone else has pretty much already said al-l- the points. Irm just going to say that I'm against the merger for a variety of different reasons and most of o o www. mmcourt . com PubIic Hearing Page 35 6/73/2078 o o 1 2 3 4 trJ 6 1 o 9 10 11 I2 13 t4 15 16 t'7 1B t9 20 27 22 23 .A ZJ which have already been spoken. And I'm going to leave it at that. MR. KJELLANDER: Thank you for your comments this eveni-ng. Mary Anderson. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MS. ANDERSON: I do. MR. KLEIN: Please state your name and spe11 your last name. MS. ANDERSON: Mary Anderson, A-n-d-e-r-s-o-n. MR. KLEIN: And what's your address? MS. ANDERSON: 60 Eagle Crest Drj-ve in Sag1e, Idaho. MR. KLEIN: Are you an Avista customer? MS. ANDERSON: I am an Avi-sta customer. MR. KLEIN: Pl-ease go ahead. MS. ANDERSON: Thank you for your time this evening. Personally Ird like to say that Irm opposed to a foreign company, s1ash, government owning a public utility company in the United States of America. My utilities have doubl-ed in the l-ast 13 years. I live in the same house. I have the same heating system. And my utilities have doubled. And my understanding is with this new merger that we could be Page 36 6 / 73 /2078 o www. mmcourt . com Publ1c Hearing o o 1 2 3 4 trJ 6 1 8 9 10 11 72 13 74 15 L6 71 18 79 20 2t 22 23 24 25 looking at potential -- more potential rate hikes and much larger rates. And I think that once we give our public utilities away to a foreign company forelgn country that we're not going to have any control over how much our rates wi}l be raised. And I think that there's a l-ot of people in north Idaho right now that are struggling to pay their utility bill today as it is right now. And I honestly know that there are people that do have to choose between heat, food and medicine. And by selling our utility, werre just we're not going to have any say in it. So I really I ask you to really consj-der this. And I ask you to please not vote for 1t. I ask you to oppose 1t. I al-so wou1d say to the fol-ks who tal-k about the windmil-ls , if anyone has ever l-ived in an area where there 1s windmills and they think that they're so wonderful, I can tel-l- you that the windmills create a dust al-l- the time. If you go along the Gorge in Oregon and Washington and they have all those windmills running all the time. I know f know people personally that l-ive there. They never had dust in that area before like they do now. There's also vibration in the ground that never goes away. As J-ong as those windmills are turning, there's a vibration that the fol-ks that l-ive in those communities feel. You never hear about that from Page 31 6/73/2078 o www. mmcourt. com Public Hearing o o 1 2 3 4 q 6 1 I 9 10 11 72 13 74 15 76 L1 18 79 20 27 22 23 24 25 anyone. You have to know people personally that l-ive in those areas that can attest to that. And that's not even taking into account the number of birds that, you know, are killed on a reguJ-ar basis But my main concern j-s that when we get when we sel-I our utility to a foreign country and to foreign people that we've now lost control-. And we just can't afford to do that. So I would ask that you oppose this. MR. this evening. MR. hand. Do you about to give but the truth? MS. KJELLANDER: Thank you for your comments Jane Frltz. KLEIN: Would you please raise your ri-ght swear or affirm that the testimony you're is the truth, the whole truth and nothing FRITZ:I do. Pl-ease state your name and spell MS. FRITZ: Tt's Jane Fritz. J-a-n-e your last name. F-r-:--L-2. MR. KLEIN: KLEIN: FR]TZ: KLEIN: FRITZ: KLEIN: MR MS MR MS MR And whatfs your address? Physical or post office box? Residence address, please. Physical address? Sure. o Page 38 6/13/2078www. mmcourt . com Public Hearing I 1 2 3 4 5 6 1 I 9 10 11 72 13 t4 15 76 71 1B T9 20 27 22 23 24 25 MS. FRITZ: 10547 West Pine Street in Sandpoint. MR. KLEIN: Are you an Avista customer? MS. FRITZ: I am and have been for most of the 40 years I 've l- j-ved here. MR. KLEIN: Please go ahead. MS. FRITZ: First of all, T want to thank the commissioners for coming up to Sandpoint to take our testimony. And I once gave testimony to you by phone. And so it's nice to see real- people j-n person. And it is an opportunity as someone who has lived in Bonner County for 40 years, in January, and who has been a conservationist in this community. And I might al-so add that I'm a registered republican and have been for a while now. MR. KJELLANDER: ff we could just ask to maintain the decorum of the public hearing thls evening and please refrain from any comments or responses to comments that are made by people who are testifying. MS. FRfTZ: Thank you, sir. And f al-so have worked on timber issues, in particular with Idaho Forest Group, in Idaho. And so and I am not a member of the Idaho Conservation League or any other group at this point besides one that ffm on the board of directors of called the Idaho Mythweaver I I Page 39 6/73/2078www. mmcourt . com PubIic Hearing o o 1 2 3 4 5 A 1 o 9 10 11 72 13 74 15 76 77 18 19 20 2T 22 23 24 25 and we work with the Idaho tribes on cul-tural- issues. So the other thing I want to sdy, first off, is that I am in support of the merger between Hydro One and Avista. And f have good reasons for that. First of all, a little bit of my background. In addition to being a conservationist in the state for a1most 40 years, I have also been on the relicensing team with the Cabinet Gorge Dam and the Noxon Rapi-ds Dam for relicensing FERC relicensing so many years ago. I served as a member of a now defunct wil-dlife group cal-l-ed the Panhand1e Loon and Wetlands Project. So I was one of the stakehol-ders at the table, the wetl-and and wildlife working group. I served in that capacity as a volunteer, citizen member for two and a half years. Once a month, two days a month, I sat at the table with utilities, agency members, stakeholders of al-l- kinds. And we hashed out a relicensing agreement. It was the very first time in the history of the Unlted States that that had ever happened with a hydroelectric company. It was significant because the people were involved. And I have great confj-dence excuse me, people I have great confidence that Avista and Hydro One wil-l- continue that policy of working with l-ocal- citizens. Since the relicensing process, I have also Page 40 5/73/2078 t www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 1 I 9 10 11 t2 13 74 15 76 71 1B 19 20 27 22 23 24 25 been involved on discussions with Avista managers, both 1ocalIy and in Spokane, ofl their transmissj-on l-ine which was just replaced, in fact right in front of my house. Some of the poles are pretty good size, and f'm not real happy with them. But I understand that everyone's el-ectric usage has skyrocketed. And we have had the cheapest energy in the United States here in the northwest. And largely we have borrowed against the future generations to get it. I am a conservationist also in using electricity. I live in a tiny house that's 400 square feet intentionally. I buil-t it. And it I have lived with solar energy in the past but decided to go with electricity with Avista because my electric bill-s are rarely over $35 a month for everything. I do heat with wood prlmarily, but I do have electric backup. But I have a very comfortabfe littl-e house. I think if more people had conservatj-on in mind there wouldn't be skyrocketing electric biIIs. And we'd all be able to afford food and medicine and the other things that are skyrocketing every day. Irm al-so very comfortable with a foreign entlty, as some people caII them. Canada is a country I actually admire greatly. And I am -- I find them to be very enlightened in many ways. And I al-so am very Page 47 6/73/20]-8 o www. mmcourt . com Pubfic Hearing o o 1 2 3 4 5 6 1 a 9 10 11 72 13 74 15 1,6 I7 18 79 20 27 22 23 24 25 supportive of the Paris cl-imate agreement because I do believe 1n the majority of scientists around the world and countries around the world who signed onto the climate agreement. So I do believe in climate change. I see it every day here in Idaho in l1ving here for 40 years. 104 degrees in June is a good example, from a couple summers ago. Nothing like that had ever happened. So I do understand the science. There have been a lot of comments tonight that are totally untrue in my opinion, call them alternative facts. So my l-ocal- concerns have been 1ate1y wlth Avista on osprey, migratory birds. They have contributed a great deal to a very popular camera, do osprey cam at our Memorial Eield. Many people watch it every day. It has educated people about wildlife. I care about wil-dlife. And Avista has been a great partner in that. I've recently had conversations as littl-e ago as a month with an osprey biologist, Dr. Wayne Melquist, who is now retired who l-ives in St. Maries, Idaho, who was -- worked for Idaho Fish and Game for many, many decades, also had osprey surveying up here on the Cl-ark Fork River and Lake Pend Orei-l]-e and the Pend Oreil-l-e River for 50 years, has banded 3500 osprey chicks for science, taught at the University of Idaho. Page 42 6/73/2018 o www. mmcourt . com PubIic Hearing o o 1 2 3 4 5 6 '7 U 9 10 11 72 13 74 15 76 I1 18 19 20 2L 22 23 24 25 We met with the Avista manager who put up a new nest so that the birds woul-d nest in a place where the transmission poles just you know, took away their home. So I find them to be responsive. I find them to care about local- concerns, to contrj-bute to the loca1 community in various ways. Education. They sponsored an osprey talk that Dr. Melquist did here at our Panida Little Theater. Because I had this experience wlth the relj-censing team and everything that happened there and, flor my group didn't get everythlng we wanted, but we got a lot of what \4re wanted. It was a negotiating process, but by consensus at the end. That doesn't happen very often. I don't have the fears that a l-ot of people in this room seem to have about Hydro One. I want to just address Colstrip for a minute. Because I believe 1n cl-imate change and because I bel-ieve coal is not the answer. I have lived with sofar. ft's interesting the comments about wind power. I contrj-bute in my Avista bill every month towards their investment in wind power wind turbines. I know because of my work wlth native peoples how much damage has been done in Colstri-p, how much suffering and sacrifice Indian tribes in that area have endured and incurred because of Colstrip. It needs to Page 43 6/73/2018 o www. mmcourt. com Publ-ic Hearing I 1 2 3 4 5 6 1 U 9 10 11 72 13 74 15 76 71 18 t9 20 2t 22 Z3 24 25 be shut down. And other compani-es are pulling out. And Avista with Hydro One's support would do the same. And it needs to happen. So for those reasons let me see if there's anything el-se I wanted to add because I know several people have tal-ked a very long time. I just thlnk that the support of the community will continue, the invol-vement of the l-ocal- people wil-l- contj-nue under this merger. And I bel-ieve Avista when they say we're going to do what we say we're going to do because Irve had that experience for 20 years. And but, you know, I do believe in climate change. I do believe that Colstrip needs to be phased out. And I do believe that Canada is an enlj-ghtened country. There are many countrj-es that invest in our industries j-n America every day. So thank you for I t you weighing my your listening. And comments seriously. I Thankappreclate you - MR. KJELLANDER: Thank you for your comments. Let's cal-l- now Kathleen Clayton. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MS. CLAYTON: I do. www. mmcourt . com Publ-1c Hearing Page 44 6/73/2078 o o 1 2 3 4 5 6 7 I 9 10 11 t2 13 T4 15 76 71 18 19 20 2t 22 23 24 25 MR. KLE]N: your last name. MS. CLAYTON: MR. KLEIN: MS. CLAYTON: 83860. MS. CLAYTON: I do Please state your name and spell Kathleen Clayton, C-1-a-y-t-o-n. And what's your address? !64 Maria Pla Lane, Sagle, Idaho MR. KLEIN: Are you an Avista cusLomer? MS. CLAYTON: Yes. MR. KLEIN: PIease to sell- our power I do Iike Canada, live there. So I go ahead. not feel that it is right foreign private company. reaIly liked Canada I would there. source to a yes. If I don't live We live in the United States. And selling our power company to a foreign company is just as devious as selling uranium to Russia. Itrs not fair for the ratepayers to have no say in the decision. If the sale goes through, I think we should switch to Northern Lights or go off the grid. I feel that strongly about it. Itrs something that we have no say about except to talk to you and say what the way we feel. Apparently it's a case of fol-l-ow the money. And if f was one of those 13 people and being offered $53,000 (sic), I think they shoul-d give that money back to the ratepayers. I think there is a possibility of Page 45 6/73/2078 a www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 1 9 10 11 72 13 l4 15 t6 t7 1B 19 20 21 22 23 24 25 Canada having control over the Columbia River and our dams. And any country that unj-tes its power source is doomed. In history you study the Roman Empire. And one of the reasons for the collapse of the Roman Empire j-s they they didn't have any more sl-aves. When they conquered a country they'd get sl-aves, and after I7 years they'd let them go. And they stopped conquering so they didn't have any more slaves. That was their power source. Our power source is electricity, and we're pretty darn helpless without it. But if we have to go off the grid, we're going to do it. And the economy of Idaho can't take hlgher rates because we have a qulrky thing up here that wages have not gone up. We may have ful-I employment, but we have one the l-owest wages of any state 1n the union. And I think that's everything I have to say. MR. KJELLANDER: Thank you for your comments this evening. Next, Brandon from Sag1e, Idaho. MR. CRAMER: My name is Brandon Cramer. MR. KLEIN: Would you raj-se your right do you swear or affirm that the testimony you're about to give is the truth, the whol-e truth and nothing but the truth? Page 46 6/1.3/20t8 o www-mmcourt.com Public Hearing o o 1 2 3 4 5 6 1 a 9 10 11 t2 13 74 15 16 l1 18 19 20 27 ZZ 23 24 25 MR MR MR CRAMER: Yes, sir. KLEIN: Brandon, could you spell your CRAMER: ft's B-r-a-n-d-o-n. Cramer, name. And what's your It's 310 River addre s s ? Woods Drive, C-r-a-m-e-r. KLE]N: CRAMER: Sag1e, fdaho. MR. KLEIN: Are you an Avista customer? MR. CRAMER: I am. MR. KLEIN: Go ahead. MR. CRAMER: I share a lot of the sentiments that were expressed here earl-ier today. And I know that you guys' as commissioners job primary tenets are to make sure that, one, w€ don't incur costs associated with this merger;.two, our rates won't go up and; three, it's in the public interest. It is difficult to state whether our rates will- increase or not. f know in the settl-ement it i-s stated that our rates will- not go up. However, there's no one there to enforce that except for you guys. That being said, if Hydro One states that the cost of power has gone up, you must l-isten to them and you must take that into account j-n your decision in future years, beyond that five-year limitation where they say rates MR MR Page 41 6/73/2078 o www. mmcourt . com Public Hearing o 1 2 3 4 5 6 1 8 9 10 11 72 13 t4 15 76 t1 18 19 20 2t 22 23 24 25 wil-I not increase. But there is nothing stating after that five years what wil-l- happen. We don't know what will happen with Avista either. However, we have a history with Avista. We know what has happened there. We can l-ook back at it. Hydro One, as a partially private company, is relatively new. Their stock has decl-ined consistently since they had their initial IPO. Their overall profitability has increased slightly due to significant Canadian government deals that they've done. There 1s nothing to state that we wil-I not also increase our rates here as a resul-t of Hydro One's poor management that has been experienced. They state in their settl-ement that we wonf t gather economies of scal-e and therefore reduce costs. However, Avista is supposed to be managed as a sole subsidiary, completely separate from Hydro One. I would be very curious to know what those economies of scal-e might be, especial-ly since Avista has primarily been in the business of power generation, whereas Hydro One has primarily been in the business of power distribution and transmission. Although related, different market segments. As residents of Idaho we do not five in a competitive state. We do not get a choice in who our o o Page 48 6/73/2078www. mmcourt . com Public Hearing o 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 76 !1 18 19 20 2t 22 23 24 25 power provj-der is. And we really rely on you guys as commi-ssioners to take care of us and watch out what's for our interest. There is nothing to state that a foreign company has the interest of Americans, 1et alone Idaho residents, as their primary interest. Their primary interest today is sharehol-ders. Not to say that Avista's is not; however, Avista is part of our community and always has been. Hydro One has not. Thank you. MR. KJELLANDER: Thank you for your comments this evening. Next we'l-l call- Eletcher. MR. FLETCHER: Good evening. MR. KLEIN: Hi. Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. FLETCHER: I do. MR. KLEIN: Pl-ease state your name and speII your l-ast name. MR. FLETCHER: Thomas Fletcher, F-1-e-t-c-h-e-r. MR. KLEIN: And whatrs your address? MR. FLETCHERz 720 Raven Lane, Careywood, Idaho. MR. KLEIN: And are you an Avista customer? MR. ELETCHER: No. t t Page 49 6/73/2018www. mmcourt. com Public Hearing o 1 2 3 4 5 6 1 8 9 10 11 72 13 74 15 t6 71 18 79 )i 27 22 z3 24 25 MR. KLEIN: Go ahead. MR. FLETCHER: I dft, however, a U.S. cj-tizen. I promise not to grandstand. And Irm opposed to the proposition. Much has been made of the deficit of the U.S. the U.S. trade deficit around the world in recent weeks. A few weeks back I read a articl-e in Bloomberg News. And the economists writing the article were attempting to assuage the senti-ments of those in this country who feel- that our sal-es deficit is a problem by pointing out that indeed there are countries of the world that are actively buying U. S. assets that more or less balance our trade deficit. Now, I came away from reading that articl-e feeling sad. In some small way what you're what we're proposing this evening is to sell yet another asset of our country and our economy. I woul-d remind you of the concept of deaccession. When a museum is lacking funds, they sel-l- assets. They sell pieces of art from the museum. And it's sad because slowly but surely the museum ceases to exist. I strongly urge you to consider what the long-term effects are of selling our assets. Thank you. MR. KJELLANDER: Thank you for your comments. Dan Rose. o Page 50 6/73/2018 o www. mmcourt . com Publ-ic Hearing a 1 2 3 4 5 6 1 I 9 10 11 72 13 74 15 76 !'7 18 19 20 27 22 z3 24 25 MR. ROSE : Good even j-ng . MR. KLEIN: Good evening. Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. ROSE: I do. MR. KLEIN: Pl-ease state your name and speII your last name. MR. ROSE: DanieI Rose, R-o-s-e. MR. KLEIN: And what's your address? MR. ROSE: 517 Sitting Bul-l- Road, Sandpoint, Idaho. MR. KLEIN: Are you an Avista customer? MR. ROSE: I am not. MR. KLEIN: Go ahead. MR. ROSE: I attended the workshop meeting that was held in Coeur d'Al-ene a couple months ago. And Hydro One, who is sitting here, was there as well and Matthew was also there. And it was stated at that time that the commissioners woul-d be making the decision ul-timately on the proposed merger. The staff had already concluded that they were for the merger. And this was before or during the information exchange process. So the staff i-s wants you to vote for in their interest to pass through this proposed merger. I find that kind of a little bit odd, putting o o Page 51 6/13/2018www. mmcourt. com Public Hearing o o 1 2 3 4 5 6 7 8 9 10 11 12 13 74 15 76 t1 18 t9 20 2t 22 23 24 25 the cart before the horse. And in that process there was discussion about Hydro One, its financial problems in the past and where it might take them and then eventua11y Avista as a subsidiary into the future. And it was discussed that there is and it was quoted in this way that evening a golden shareholder. If I'm incorrect, please tel1 me that I'm i-ncorrect. Gol-den sharehol-der. I'd l-ike to know who the golden sharehol-der is. We have not ever been told that. To this date, I believe, it is still unknown. My investigation into this could find that Gol-den Share is a Chinese company. And they are in the business of backing these type of mergers. And when the primary goes bankrupt, they end up owning the whole kit and caboodle. I don't know if it was misrepresented that the golden shareholder is Golden Share. But it seems very odd that we can't get that name of the company who will be the the company entity that takes over should Hydro One go bankrupt. I am very concerned that that information, that one piece of information, which is critical- to the Iongevity of any entity that eventuafly takes ownership of Avista be known and it not be another country in the background who is willing to take our power source. I know Hydro One is a transmission and Page 52 6/13/2078 o www. mmcourt . com PubIic Hearing o a 1 2 3 4 5 6 1 o 9 10 11 t2 13 t4 15 t6 71 18 19 20 2t 22 z3 24 25 distribution company and now looking to expand lnto the production area by acquiring Avista. I real1y do believe that if your staff is telling you that this thing should go through and they can't tel-l us who that golden shareholder or who that entity is that is identified, or to the date and time unidentified, we can't go through with this any further. And that rel-ies on you commj-ssioners. Either we're being tol-d the truth in f ull- dj-sclosure or we' re not. And it appears that we're not. And if that's the case, I would suggest that your staff's recommendation be disregarded. I appreci-ate your time. Thank you. MR. KJELLANDER: Thank you for your comments. That concludes our list of those who had signed up to testify. If there are others who still wish to testlfy this evenj-ng, af you'd like to raise your hand and we'II try to bring you up. And for those of you who do want to testify, if you could move closer up to the front so we don't miss you. And why don't we start right here. MR. KLEfN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MS. SCOTT: Yes, I do. MR. KLEIN: And wou1d you please state your Page 53 6/73/2018 t www. mmcourt . com Public Hearing I t 1 2 3 4 5 6 't o 9 10 11 t2 13 t4 15 76 71 18 79 20 27 22 23 24 25 name and spell your last name. MS. SCOTT: Heather Scott, S-c-o-t-t. MR. KLEIN: And what's your address? MS. SCOTT : 21097 Highway 47, Bl-anchard. MR. KLEIN: Are you an Avista customer? MS. SCOTT: I am an Avista customer. MR. KLEIN: Please go ahead. MS. SCOTT: Thank you. Thank you for coming up here tonight. And I do have some concerns, and Irm hoping that a1l- these comments you hear tonight you will realIy take them into consideration and rea1ly investigate some of these concerns before you make your final decision. I understand the predicament you're in and the power you hold. And I'm guessing that's pretty weighty on your shoulders. And I do understand you are an appointed positlon. And that being said, I'm just going to share some of my concerns. So one of my big concerns is the advancement of Canada's green energy policies with wind and solar and the ellmination of coal-. V{hether we want to believe it or not, coal is a bi-g part of Avistars current it is a part of how they produce power. And so when we take out part of what they've already got golng onr it's hard to guarantee that the price is not going to go up Page 54 6/13/2078 I www. mmcourt . com PubIic Hearing o o 1 2 3 4 5 6 1 8 9 10 11 L2 13 74 15 I6 71 18 79 20 2L 22 23 24 25 when we go to more expensive wind or sol-ar power generation. Another concern f have is once this merger goes through, we wil-I not have much of a say. We as citizens, w€ as ratepayers, our only connection to this company will be through three appointed people. And I just think that that removes the power of the citizens just further away when it comes to decision making. So that's another one of my concerns. Another concern is was brought up earlj-er 1s that this is a failing company. Hydro One is in bankrupt. Their infrastructure is falling apart. And f rm asking the commi-ssion that when you make this decision you realJ-y j-nvestigate what this merger is going to l-ook like. When we have a failing company buying a company that may have some debt, a lot of money changing hands, there's more to this picture I think than what we're seeing. And I think maybe some of that is coming out today. The golden share provisj-on to protect ratepayers where the golden share has the ability to vote al-l- outstanding shares and put the company into vol-untary bankruptcy. This is huge if if you're going to be making a decision and you don't even know who the players are. Because they are a player Page 55 6/73/2018 o www. mmcourt. com PubIic Hearing o I 1 2 3 4 q 6 7 I 9 10 11 t2 13 l4 15 t6 L't 18 19 20 2l 22 Z3 24 25 according to the agreement. So I'm hoping that you as a commission do your research and understand who that is and come back to the people and assure us that that's not going to be a problem. Thls is a big concern. So when radical leftists and environmentalists are all for somethj-ng, it kind of raised some red flags for me. And so when I got on a certaj-n website today and I started looking at the successes that one of the one of the groups who's invol-ved in the lawsuit has brought up, I just wanted to share the concerns I have with it. Replacing fossil fuel-s with conservation and clean energy. ftrs a concern to me, like I mentioned before, to take coal out of the equation. I have heard and I haven't confirmed but this is going to put a small town j-n Montana completely out of business. Now, those are our nelghbors, and so that's a concern. So to my understanding this coal- plant that was going to be cl-osed down in 2031 is now going to be accel-erated to 202'1. That being said, the way they're doing that is from tax from money col-lected in rates. So those are rates from citizens or from ratepayers that they've coll-ected more money than they should have. So instead of returning that back to the shareholders (sic), what they're golng to do is they're going to reroute that Page 56 6/73/2078 o www. mmcourt. com PubIic Hearing o o 1 2 3 4 5 6 1 B 9 10 11 t2 13 L4 15 76 t1 1B t9 20 2I 22 23 24 25 money to pay off this coal- plant and to decommission it sooner. That's a concern because that money should go back to the shareholders (sic). The other concern is there's many. But so j-nvestment of the $5.3 miflion over ten years 1n a new they're calling them conservation programs in north Idaho. This group has caused major grief in our county who' s going to who's invol-ved and is on this this board, actually a stakeholder in this group. I'm hoping that there's some citizen stakehol-ders in this group. I'm not aware of how it was appointed, and I had a I just got this information today. But to put $5.3 mill-ion back into our area through a radical environmental group may not be Iooking out for the best interest of Idaho citlzens in north Idaho. And so I'm hoping that you will rea11y look into what that money's going to be used for and bring that into your decision. Let t s see. There' s one more oh. So another thing is the electrification of cars. And so now we're going to be it's the most important thing we can do to protect Idaho's l-ocal- air quality. Wel1, I don't know if Idaho believes that that's the most important thing to do for Idaho to protect Idaho's air quality. But now there's going to be a l-ot of money. Page 51 6/13/2018 o www. mmcourt . com Public Hearing o 1 2 3 4 5 6 1 B 9 10 11 72 13 74 15 76 l1 1B t9 ZU 2t 22 23 24 25 So a1I this money is getting paid out. I donrt know how you can't raise how you're not going to raise rates when there's all- this nonsense money being spent on agendas. And it's pretty clear what the agenda is, and I think it's been brought up earl-ier. Okay. Irm going to move on to a few more concerns and then wrap it up. I have a concern and I'm hoping you w111 research this is will- the ratepayers have to pay off any of the current debts from Hydro One? I'm concerned about the 13 top officials of Avista will be getting over $50 million. T'm concerned that Hydro One owns a nuclear power p1ant. And will the cost of shutting its plant down be passed onto U.S. ratepayers? I'm concerned on how this wil-l- affect the Col-umbia River Treaty and will it give Canada a blgger seat at the table and what that looks l-lke. And I'm hoping you as a board will investj-gate that fulJ-y because that's long-term thinklng. I'm concerned with some of the comments made by officiaLs in Canada saying that once this acquisltion becomes permanent they basical-1y will have control-. Thatrs come out from public official-s in Canada. I hope you l-ook lnto al-l that before making your decision. I've got one more thing somewhere if f can find it. It's no secret to us up here the direction our t Page 58 6/13/2018 o www. mmcourt . com Public Hearing t 1 2 3 4 5 6 1 I 9 10 11 72 13 74 15 t6 77 18 19 20 27 22 23 24 25 executive branch has been headed over the past few years when it comes to climate nonsense and the gravy-train party. But I truly bel-ieve you guys can really stand up for the people and really look in depth at this decision and maybe not be intimidated. You could reaI1y be the heroes of Idaho if you look out for the people. And f'm hoping you know, the little guys here are the ones that you live with every day. f mean, they can't take you out to fancy dinners. They can't wine and dine you. But we are the people of Idaho. And we're just hoping that you will l-ook out for that and l-ook into depth and rea1ly spend the time. And f appreciate you coming up here to take our comments. Thank you. MR. KJELLANDER: Thank you for your comments this evening. I believe, sir, you were next. We'l-I have you move up to the podium. Then if I'm not mistaken, you in the front row are following. Thank you. MR. KLEIN: Raise your ri ght hand. Do you you're about to giveswear or affirm that the testimony 1s the truth, the whole truth and MR. JACK KLEIN: I do. nothing but the truth? t MR. and spelI your MR. KLE]N: last Would you please state your name name. JACK KLEIN: Yes. My name ls Jack K1ein, Page 59 6/13/2078 I www. mmcourt . com Public Hearing o o 1 2 3 4 5 6 1 8 9 10 11 t2 13 74 15 t6 I1 18 79 20 21 22 23 24 25 K-l-e-i-n. I reside at 294 West Green Pines Road, Hope, Idaho. MR. KLEIN: Are you an Avista customer? MR. JACK KLEIN: Yes, I am. MR. KLEIN: Go ahead. MR. JACK KLEIN: Now, for the past 25 years or so f've served my country in uniform and then to come home and find out that a service that is heavily depended on by the citizens of this state is going to be sotd to a foreign entity. That's not the thlng that I signed up for to serve my country to do. Our -- my main goal was to protect this country by every means availabl-e and that was voting or fighting. I've done the best I coul-d. And I just implore you to think about this. Think of the citizens of this state and not what it's going to benefit somebody else down the road. Yes, Avj-sta's probably done very great things f or this communi-ty over the l-ast years. But board chairmanships and members of the board change as often as governments do and you cannot depend on them to continue to do the same things. So if you reaI1y want to thank me for the service to my country and to you, please consider this. Do not let this go through. Thank you.I www. mmcourt. com Publ-ic Hearing Page 60 6/73/2018 a o 1 2 f 4 5 6 1 B 9 10 11 T2 13 t4 15 L6 L1 1B 19 20 2I 22 23 24 25 MR. KJELLANDER: And thank you for your comments. And I believe, sir, you were next. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MR. JAMES: I do. MR. KLEIN: Please state your name and spe11 your last name. MR. JAMES: Randy James, J-a-m-e-s. 2772 Winchester Way, Sandpoint, Idaho. Been an Avista customer for 45 years. I'm opposed to this merger. frve heard several reasons tonight. Some enlightening facts. One that it coul-d be a felony, which seems to me would stop the whol-e thing right there. A1so, lots of things for you fofks to consider. But there ought to be 50 mil-l-ion reasons to consider not to al-low this to go through. Thank you for your time. MR. KJELLANDER: Thank you. And was there anyone else? Ma'am, if you would l-ike to step up to the podium. MR. KLEIN: Do you swear or affirm that the testimony you're about to give is the truth, the whole truth and nothing but the truth? MS. OLDEIELD: I do. MR. KLEIN: Pl-ease state your name and spell Page 67 6/73/2078 t www. mmcourt . com PubIj-c Hearing o o 1 2 3 4 5 6 1 d 9 10 11 72 13 t4 15 76 71 18 19 20 27 22 23 24 25 your last name. MS. OLDFIELD: Sharon OIdfield, O-1-d-f-i-e-1-d. 1036 Park Avenue in Sandpoint. MR. KLEIN: Are you an Avista customer? MS. OLDFIELD: I just wanted to express the concerns that have been already expressed. So I won't go into it too far. But I read on your site or one of the sites that I researched, and it said that very proudly that rates were going to hol-d when you made this this transfer, that the Trump taxes were going to help with that, that you were abl-e to redo where you put the money. Well, that doesn't give me a warm fuzzy feeling about the rates. I reaIIy fear that thatrs going to be something that wil-l- happen, especJ-a11y when you're forcing us to go to other energy sources that we're not ready to go to yet because we don't even have storage for wind wind energy or other energies that we're trying to use. It will- get there. We're working at getting there. But I think this is too soon. And I think you're forcing the issue. And I don't see anything that will happen other than the rates will go up. MR. KJELLANDER:Thank you woufd like for your comments. Is there anyone efse who to testify? Sir, is Page 62 6/t3/2018 o www. mmcourt . com Publ-ic Hearing o 1 2 3 4 5 6 '7 8 9 10 11 72 13 74 15 76 77 18 19 20 27 22 23 24 25 this your second go-around? MR. HODGE: Yeah. Is that okay? MR. KJELLANDER: Yeah . I ' l-l- go ahead and allow it. But my hope is that we don't start a trend. MR. HODGE: Sorry if I'm making this rough on you. MR. KJELLANDER: No. That's fine. We're here and MR. HODGE: I would just like to do you need my name again? I've been here already. MR. KLEIN: If you could give your name, that's great. MR. HODGE: Lewis Hodge. MR. KLEIN : Okay. You ' re stil-1 sworn . MR. HODGE: Okay. I just woul-d l-ike you commissioners to consider that if the decision here is in favor of this, in favor of these people and their friends and family and everybody in Idaho, then I guess it's good everywhere. How would you feel- if the entire power and the power generation industry was owned by foreign countries that are this hostil-e to the United States? There is no country that is hated more than the United States. And this industry is basic to Ij-ving, to the economy. Everything about this country revolves around this. Just think about it, fellas. That's all- I o t Page 63 6/73/2078www. mmcourt . com PubIic Hearing I 1 2 3 4 5 6 1 8 9 10 11 72 13 t4 15 76 t1 18 19 20 2L 22 23 24 25 can say. Thank you. MR. KJELLANDER: Thank you. And, again, w€ appreciate your attendance this evening and your participation as it relates to developing a record for this case. We also greatly do appreciate the fact that you showed up this evening. I know there are a 1ot of things that get in the way of participating in hearings l-1ke this. And so we greatly appreciate the fact that you took the time away from other activities to come and provide your comments this eveni-ng. I can assure you that there are times we go out and do public hearings and we see no one show up. So this is actually very encouraging that we have a good group tonight and that your thoughts were actually thoughtful as wel-1 as helping us develop that fu11y developed record. The next phase of this proceeding is a public hearing j-n Coeur d'Al-ene. That will be tomorrow evening. And so with that I want to thank you again for your help in developing a record. And we are adjourned. (Whereupon, the public hearing was adjourned at 'l:32 p.m. ) I Page 64 6/73/2078 I www. mmcourt . com Publ-ic Hearing o o 1 2 3 4 5 6 7 8 9 10 11 72 13 74 15 16 t1 18 19 20 2L 22 23 24 25 REPORTER' S CERTIFICATE I, Patricia L. Pull-o, Certified Shorthand Reporter, do hereby certify: That the foregoing proceedings were taken before me at the time and place therej-n set forth, at which time any wj-tnesses were placed under oath; That the testi-mony and all objections made were recorded stenographically by me and were thereafter transcribed by me or under my direction; That the foregoing is a true and correct record of al-I testimony given, to the best of my ability; That I am not a relative or employee of any attorney or of any of the parties, nor am I financially interested in the action. IN WITNESS WHEREOF, I have hereunto set my hand and seal this 25th day of June, 2078. R 5Notary Publ-ic 816 Sherman Avenue, Suite 7 Coeur d'Alene, ID 83814 My Commission Expires 7L/13/2078. 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LO, 13 42'. 15 42:16 willing 52:24 willingness 4:19 Winchester 61:10 wind 34:L2,13 43:19 43:21,21 54:20 55:1 62:18,18 windmills 34:8,11 37:L5,t6,t7,t9,23 wine 59:9 wire 14:24 wish 53: 16 witness 6:2L 65:L7 witnesses 4:7 65:7 woman 25:LL 32:24 wonderful 37:17 wood 41 : 16 Yrloods4T:7 word 24:19 words 23: 13 work 30:2 34: 1 1 40: 1 T-y-l-e-r 26:18 table2l:22 22:tl 27:l 40:12,16 58:16 take 2:5,21 3:20 5:3 14:9 16:8 L9:7 3l:3 31:9 39:B 46:14 47'.23 49:.2 52'.3,24 54:IL,24 56:14 59:B 59:13 taken 2:2 65:5 takes 31:8 52:19,22 talk 21:20 37:14 43:7 valid 20:20 value 20:16 values 21:25 variety 35:25 various 43:6 verbal 4: 18 vibration 37:22,24 video 33: 1,5 voluntary 55:23 volunteer 40:14 vote 37: 13 5l:23 55:22 voting 60:13 www.mmcourt.com Public Hearing wages 46:15,16 6173/20t8 T Page 73 43:22 worked 39;2t 42:2L working 16:'2 40:13,23 62:19 workshop 51:15 world 28:17 3l'.12 42'.2,3 50:6,12 worth 19:24 wouldn't 27:24 4l:L8 wrap 58:7 writing 50:8 35OO 42:24 4 40 39:5,t2 40:6 42:5 4OO 41: 1 1 419;7,18 15:20 54:4 4523:14 61:11 46 23:14 47 L0:9 2O:2 5 x 5.3 L7:7 57:5,13 5O 10:16 42:24 58:lL 61:16 5O,0OO 31:19 5O,515,000 10:16 51 15:1 517 51:10 53,OOO 45:24 589226:20 Y yeah 11:9 25:20 35:16 63:2,3 years 9:7,18 16:2,19 L7:7 2l:9 22:lO 29:15 30:13,16 3l:.22 32:7,L9 33:8 36: 23 39 : 5, 12 4O:.7 ,940:15 42:6,24 44:lL 46:8 47:24 48:.2 57:5 59:160:6,19 61:11 York 34:15,17 6 z 6:OO 1:11 2:2 6O 36:13 6O518:2 6l-327 22:24 6t-32822:23 697 65:21 o 7 1 7 2t:17 65:22 7=32 64:21 70 29:lO 71435:L6 72O 49:22 7287:L3 1O 12:20 1O36 62:3 1o442"6 10547 39:1ttl 13l2OLa 65:23 13 1: 10 2:2 LO:L7 36:22 45:23 58:lO 15 14:11 33:B 164 45: 5 17 46:7 17th 18:2 19 31:21l95l 25:24 1961 22:23 81665:22 8381465:22 83860 45:6 Bth l2:7,13 2 20 L6:18 44:lL 2O-some-odd-percent 15: 3 2OOO 9:14 2018 1:10 2:2 65'.t8 2027 56:20 2O3O-something 22:7 2037 56:19 2LL26l:.9 24 L3:Lt 25 20:16 60:6 25- 21t4 2502 L2:L 25th 65:18 27091 15:20 54:4 294 60:1 3O 16:2 3o-year 21:4 3LO 47:7 330 23:13 35 41:15 www.mmcourt.com Public Hearing 6/t3l2OLB 9 3 -Fh fi,u J*fe /f oE,<trac.s {.{ o o Joanna flimmons, Ont.) expecting a new baby: lt costs S8@ per month for electricfi in hertrailer home.r 58,000 households disconnected due to high cost of electricity; disconnects grew 19% in 3 years.o Disconnects by HydroOne continue just befiore Christmas as winter sets in.o RuralOntarians go "off-grid', using backyard generators, cook on BBQs.o Dinelle's Grocery in Echo Bay shuts all reftigerated food section, coolers, freezers, as electricity costs too much to operate compressors; must close Zl3rdsof store.o Parents must choose: feed kids or pay electric bill.o "Electric bill takes one-hatf of my monthly tak*'home pay''-o Mayor Lynn Watson (Echo Bay Ont.): "seniors can't afford electricity; rates are killing small business".o Dorothy \Atlnne (Moosonee, Ont.): "l need to count pennies to pay electric. We don't eat mea! fruits, turn off all the liehts, for money to pay for electricitf; Customen 'my electric bill is S880/mo even using only 3 (x)ms.o United Way Exec. Dir. Francesca Dobbin: "Disconneds ore totolly o crisis; HydroOne bills forcing families to abandon homes os eledric is larger than mortgoge; we had 3,0AO cases of E. coli some yedrs dgo and that wos o crisis, while Energy Minister soys 58,M disconnects ore not o crisis".r 392,963 Ontarians in "electric arrears" with debt growing4$g6; cannot afford to pay electric charges (2015).o Olobal odjustment charge is70P6 of electric bills {a convenient method to hide the real costs of Ontario's sweetheart renewable deals, closing coal plants); energy use & otherfees 3096 of bilts.o Ontarians overpaid S37 billion in electric charges. Whv Not Hvdro One: Hydro One's electric in Ontario (2015) is 29.9 cents/ kwhr; 35 cents per kwhr (2016) , 460% higher than Avista, 1500% higher than Douglas County or Chelan County PUDs 2.39 c/ kwhr, but is increasing rates $289 more(2019). Hydro One's outages are 24% more frequent and 30% longer; charges more for systems in decline, is unresponsive to 10,000 customer complaints about high cost, is gaming the Energy Board to get more money, is inefficient with no incentive to become productive, its capital budgets are not benchmarked, and with cost overruns buih into budgets. Its 52.25 billion conservation effort is a waste of money (Fraser lnstitute), reducing CO2 only 0.0003%. FACT SHEET - WHY STOP HYDRO ONE AND OiITARIdS CONTROL OF AVISTA1 Pre-2000 Ontario:o Boasts the most advanced and efficient fleet of coal-ftred electric generating fleet on continent.r Ontario electric costs 1-2-3 cents per kwhr.o Maurice Strong Canadian, high school dropout.-.o Dreams up global warming idea, as CEO of Ontario Hydro, UN insider, Chairman of UN's Climate Summit in Rio de Janeiro to convince goy'ts. of climate change, end use of fossil fuels, claims climate catastrophe to facilitate global go\rernance by UN; receives 51 M kickback in Sadam Hussein's "Oil for Food'scandah assists N. Korea's nuclear ambitions; Ontarians label him "Father of America's Destruction'.o began reorganizing in 1990s; Hydroone created in 2(D2.o Creates Chicago Climate Exchange mentoring Barack Obama, Al 6ore, a market for world to pay carbon indulgences; Barack Obama: "under my plon eledrictty rates will necessorily skyrockef . Post-20fi) Ontario: {Green Enersv Act. "Round 1')o Ontario politicians are terrified of Carbon Dioxide, so what do they do? Pass the Green Energy Act, 2009; codifies Maurice Strongis dream of global warming.o Shuttle all coal plants, make huge expenditures for nuclear, yet convert to renewables while ignorant of cost.r Electricity cost rising fasterthan anywhere in North America; off-peak rates, the cheapest rates, rose L49%- 155% in 10 years about I times faster than the !7.8% rise in inflation; rates rose 25% just from 2015-2015.o SBn 2O-year energy deals that costs 400% more for wind and 1,000% more for solar, or $gZ billion above market-priced electricity and 5137 billion to 2032; Green Energy Act Round l total cost 5172 B.o Guarantees renevrrables access to electric grid, pay $13S/mwhr, to produce electricity without limit.o Build 237 wind farms (tens of thousands of wind turbines) on all shores of 4 Great Lakes bordering Ontario.o 2017:. So much electricity, dumping to New York, Quebec at 2% of cost; 98% paid by outraged Ontariant bry demonstrations. a a o a \ /0, r Their distribution system is in considerable disrepair, least reliable in all of Canada's. Distribution is their business. o Since 2015 a quasi-private company, shields them from FOIA requests, from investigations by watchdogs to resohe complaints and prevents Auditor Generalto conduct financial accountability. r HydroOne run by promise-them-anything governments whose leaderare focused on getting re-elected. o lts Smart meter rollout cost 52 B, is not working, with benefits unrealized. o Developers knew-MPP says: 'the smoking gun"-that to construct wind turbines in Chatham, 40 mi east of Detroit would contaminate nearby active wells2. C-K farmer Marc St. Pierre: "toxic sludge water is only usefulfor bathing and toilets-...there's no way it's safe to drinK3. The Pain Accelerates - MPP savs Ontario's Green Enerev Act, "Round 2" is Coming Here r Cap-and-Trade (C&T) of carbon credits begins in earnest, 2Ot6; a 'sham" program, as it is only about 'trading credits" and no concern for GHG emissions though so rhetorically-claimed by politicians. o Force reducing 6HG emissions by 80% below 1990 levels; acquiring Avista assures Hydro0ne meets 2020 target.o Round 2 compels Canadian companies to raid U.S. utility companies seeking "clean power" sources to satisfo C&T. o Acquisitions totalSgg g+ in two year period, including Avista at 56.7 B; Ten more U.5. utilities remain as targets. o HydroOne's wooden nickelfor Avista saves it 58 B otherwise due to buy carbon credits from Chicago or other C.Exc. and they could now own 13 hydroelectric dams and 374000 Avista customers to shield their misfortunes.t Member of Provinciol Parliament (MPP, Doiene Vernile ol Kitchener: Ontarlo "will sell off 6O% of Hydroone lPO, but maintain control" "control Hydroone's board", "appoint directors, maintain veto power, nominating authority to its subsidiaries", "maintain regulatory control", "set rates", to "unlock assets to build Ontario's infiastructure"l. Wilt Ontario set Avista's rates?-She says so.o Enerw Ministry POll Fair Hydro Plan Auditor General: this band-aid mirage of a plan reduces electric rates from 36to 27 cents/kwhr at expense of future electric customers; it saves $18.4 B today by borrowing S21 B but cost could be S3O B if interest rates rise, but future customers will pay $tt.O g, an amount entirely unknown for the save- now-pdy-more-later programt (see illustration of electric rates). HOW Cap-and-Trade damages people, whote economieq whole countries, and whole societies6:o C&T forces electric rates higher, estimated to add Round 2 cost of $3,247 per household in Ontario, not including cost of Canada-wide Ss0/tonne tax on carbon dioxide, all of this added to Round 1 costs.o C&T costs are invisible, not seen on electric bills, camouflaged in higher costs of all consumer goods. o C&T is an illusion, a massive shell game, a massive energy tax in disguise.o C&T transfers important economic decisions from private to government, subordinates to Central Planning (i.e. Venezuela, Cuba, N. Korea, China, FSU). o C&T is all about artificial scarcity of fuels by government fiat, without considering supply and demand. .o C&T ("Waxman-Markey C&T bilf') was rejected by U.S. Senate in 20097 would add S20,000/year per customer in energy costs, cause 1.14 million jobs lost per year, including green jobs, decrease GDP by 5393 B per year, and a o o a o using EPA's valuation of statistical life methodology result in 39,300 deaths per year, with larger rates of death in the high risk low income groups. o C&T increases energy costs: For each 10% reduction in 6HG's, it disproportionately reduces incomes by 10% for lower quartile earners; a reduction of 80% by 2050 in Ontario or 85% (Pres. Obama's Clean Power Plan; UN' Paris Agreement) willsurely kill.o C&T harms energy security by eroding our ability to produce domestic energy, forcing importing fuels, causes job losses. o C&T forces the U.S. to forgo its current highest GDP, highest standard of living, highest life expectancy, increasing incomes, highest technological outpu! high agricultural out.... due to our large use of fossil fuels, but at what cost?o C&T produces no impact on climate, since CO2 is unrelated to temperature or climate.o Gov. lnslee wants C&T and Carbon taxes to create a "predictable climate" unaware that70% of tax's o tax on oin lnslee's book "Apollo Project" to re-engineer energy sources misrepresents climate with 29 errors in chapter 1. I M ) { :': E q ii::