20180126Avista to Staff ICNU_DR_042.DOCX

AVISTA CORP.
RESPONSE TO REQUEST FOR INFORMATIONJURISDICTION:WASHINGTONDATE PREPARED:11/01/2017CASE NO.:U-170970WITNESS:Patrick EhrbarREQUESTER:ICNURESPONDER:Patrick EhrbarTYPE:Data RequestDEPT:State & Federal RegulationREQUEST NO.:ICNU – 042(AVA)TELEPHONE:[phone]EMAIL:[e-mail]:Refer to Thies, Exh. MTT-1T, beginning at 22:8:a. Why is Commitment No. 22 made at the level of Olympus Holding Corp. and not Hydro One? Please explain.b. Please explain why Commitment No. 19 is made at the level of Olympus Holding Corp. and not Hydro One.c. Please explain why Commitment No. 20 is made at the level of Olympus Holding Corp. and not Hydro One.d. Please explain why Commitment No. 23 is made at the level of Olympus Holding Corp. and not Hydro One. For example, is the intent to allow Avista to subsidize Hydro One?e. Please explain why Commitment No. 30 is made at the level of Olympus Holding Corp. and not Hydro One. Will Hydro One not submit to the jurisdiction of the relevant state courts?f. Please explain why Commitment No. 41(b) is made at the level of Olympus Holding Corp. and not Hydro One.g. Please explain why Commitment No. 46 is made at the level of Olympus Holding Corp. and not Hydro One. For example, is the intent to allow Hydro One to make changes to the ring fencing provisions, absent approval by the WUTC?RESPONSE:a. Commitment No. 22 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for ensuring the necessary books and records related to Avista are maintained and to provide segregation between Hydro One’s rate-regulated business in the United States, held by Olympus Holding Corp., and the Ontario rate-regulated business, held by Hydro One Inc.b. Commitment No. 19 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for ensuring compliance with all applicable laws.c. Commitment No. 20 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for ensuring compliance with all existing orders issued by the Commission.d. Commitment No. 23 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for ensuring compliance with all applicable U.S. laws, which are the laws governing Avista. Hydro One’s rate-regulated business in Ontario is not subject to U.S. laws and it is subject to its own requirements relating to cost allocations. Commitment No. 23 is not intended to allow Avista to subsidize Hydro One.e. Commitment No. 30 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for ensuring compliance with the Commission’s orders adopting the commitments and subsequent orders affecting Avista. Hydro One is not subject to the jurisdiction of the relevant state courts. Hydro One believes that nothing in the proposed transaction would make it necessary for Hydro One to submit to state court jurisdiction.f. Commitment No. 41(b) is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is the U.S. Parent responsible for obtaining and filing the non-consolidation opinion pursuant to Commitment No. 41(a) and for ensuring compliance by the U.S. entities with governance requirements.g. Commitment No. 46 is made at the level of Olympus Holding Corp. because Olympus Holding Corp. is responsible for the majority of the ring fencing commitments and for ensuring compliance by the U.S. entities with governance requirements. Commitment No. 46 is not intended to allow Hydro One to make changes to the ring fencing provisions. Any changes to these provisions will require WUTC approval.