20180319Washington Notice of Settlement.pdf

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Avista Corp.
l4l I East Mission P.O.Box 3727
Spokane, Washington 99220-0500
Telephone [phone]
Toll Free 800-727-9170
March 16,2018
Diane Hanian
Commission Secretary
Idaho Public Utility Commission
472 W . Washington Street
Boise,[d87302
Attention: Filing Center
RE: Joint Application of Hydro One Limited and Avista Corporationfor Order Authorizing
Proposed Transaction DockBt Nos. AVU-E- I 7 -09 and AVU-G- I 7 -05
Enclosed for filing is an electronic copy of the Notice of Settlement-in-Principle in the Hydro
One/Avista Merger docket in Washington (Docket U-170970). As stated in the Notice, the
Parties in Washington intend to file the actual Settlement Stipulation on or before March 27,
2018. An original and seven copies will be sent via overnight for receipt on Tuesday, March 20,
201 8.
Sincerely
/
Meyer
Vice President, Regulatory Affairs
Enclosure
Cc: All Parties
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Bob Feryuson
ATTORNEY GENERAL OF WASHINGTON
Utilities and Transportation Division
PO Box 40128 o Olympia WA 98504-0128 o [phone]
March 16,2018
Steven V. King, Executive Director and Secretary
Washington Utilities and Transportation Commission
1300 S. Evergreen Park Dr. SW
P. O. Box 47250
Olympia, Washington 98504-7250
RE: In the Matter of the Joint Application of Hydro One Limited and Avista Corporationfor
an Order Authorizing Proposed Transaction
Docket U-170970
Dear Mr. King:
This letter is to notify the Washington Utilities and Transportation Commission (Commission)
pursuant to WAC 480-07-730(4) that a settlement in principle has been reached in this
proceeding. Pending consideration of the settlement by the Public Counsel Unit of the Attorney
General's Office (Public Counsel), it may be an all-party settlement. Public Counselactivcly
participated in negotiations and will expeditiously obtain a final decision on the settlement.
Pursuant to WAC 480-07-385(2)(b), Commission Staff requests that the Commission suspend
the procedural schedule in this docket. All of the parties to this proceeding support this request.
1'he parties intend to file a settlement agreement on or before Tuesday, March 27, and to file
testimony in support of the settlement on or before Tuesday, April 10.
The parties wish to alert the Commission that the settlement in principle incorporates the use of a
portion of Avista's deferred federal income taxes, for the purpose of accelerating the
depreciation schedule for Colstrip Units 3 and 4 to reflect a remaining useful life of those units
through December 3l , 2027 . This settlement in principle does not reflect any agreement with
respect to the ultimate closure of Units 3 and 4. The parties to the settlement are aware that the
use of deferred tax benefits are being considered in Avista's pending rate case as an offset to a
portion of the requested rate relief. It is for this reason that we want to bring this to the attention
of the Commission at this time. When the settlement is filed, additionaldctails will be provided.
In addition to Colstrip, the settlement in principle includes provisions related to low income
custorners, conservation, the environment, and financial protections for the utility and its
ATTORNEY GENERAL OF WASHTNGTON
Steven V. King
March 16,2018
Page2
customers. These provisions will be set forth in the settlement agreement that will be filed on or
before March 27,2018.
Sincerely,
/s/ Jennifer Cameron-Rulkowski, WSBA No. 33734
Assistant Attorney General
Office of the Attorney General
Utilities and Transportation Division
P.O. Box 40128, Olympia, WA 98504-0128
(360) 664-l 186
[e-mail]
JCR/emd
cc: Parties