20180703notice_of_technical_hearing_order_no_34101.pdf

Office of the Secretary
Service Date
July 3,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TIIE JOINT )CASE NOS.AVU-E-17-09
APPLICATION OF HYDRO ONE LIMITED )AVU-G-17-05
AND AVISTA CORPORATION FOR )
APPROVAL OF MERGER AGREEMENT )NOTICE OF TECHNICAL
)HEARING
)ORDER NO.34101
On July 19,2017,Avista announced that it had entered into a merger agreement with
Hydro One ("Applicants").On September 14,2017,the Applicants filed the above captioned joint
application for approval of the merger.Approval of the Application would result in Avista
becoming a wholly owned subsidiary of a Hydro One holding company.Idaho Forest Group,
Clearwater Paper,Idaho Conservation League (ICL),the Community Action Partnership
Association of Idaho (CAPAI),and the Washington and Northern Idaho District Council of
Laborers (WNIDCL)intervened as parties.
After settlement discussions between the Applicants,the intervenors,and Commission
Staff,on April 13,2018,the Applicants and Commission Staff filed a Motion for Approval of
Stipulation.The Motion notified the Commission that all parties had signed a settlement
Stipulation to fully resolve the case.
The Commission is not bound by the proposed settlement,but will review it consistent
with Commission Rules 271-280 (IDAPA 31.01.01.271 -280)to determine whether it is just,fair,
and reasonable,in the public interest,or otherwise in accordance with law or regulatory policy.
As part of its review process,the Commission issued notice of proposed settlement and
set deadlines for interested persons to submit written comments.The Commission also held public
hearings in Moscow,Sandpoint,and Coeur d'Alene for Avista's customers and other interested
persons to testify in this case.To date,Commission Staff,CAPAI,and the Idaho Conservation
League have filed comments in support of the Stipulation.The Commission has also received
about 400 written comments from customers and other interested persons,most of whom oppose
the merger.Most recently,on June 27,2018,the "Avista Customer Group,"which identified
itself as "an unincorporated nonprofit association,composed of utility ratepayers,taxpayers and
concerned citizens,"filed a petition asking to intervene as a party in the case.See Avista Customer
Group's Petition to Intervene.The Commission has not yet ruled on this Petition.
NOTICE OF TECHNICAL HEARING
ORDER NO.34101 1
On June 22,2018,Commission Staff recommended that the Commission schedule a
n.al hearing for the parties to specifically address the concerns and issues raised in public
comments and testimony.These concerns and issues have included,without limitation,concerns
about Hydro One being a foreign company that is owned,in part,by the Province of Ontario,
Canada;Hydro One's intentions and financial ability;the merger's affect on American waterways,
dams,and infrastructure;the "Golden Share"ring-fencing provision in the settlement;this
Commission's jurisdiction over Avista after the merger;the ownership of Avista's assets;
Canadian laws and regulations being imposed on Avista and its Idahocustomers;Avista ratepayer
obligations related to Hydro One debt;the merger's impact on Avista's costs to serve customers,
and those customers rates;resulting costs of and rates for supplying service after the merger;and
if the Company has provided the Commission with sufficient information including the cost
allocation methodology for the allocation of costs to Avista and its customers.See Comments of
Avista Customer Group.
The Commission now finds it appropriate to issue this order scheduling the requested
technical hearing.
NOTICE OF TECHNICAL HEARING
YOU ARE HEREBY NOTIFIED that the Commission will convene a technical
hearing in this matter on MONDAY,JULY 23,2018,AT 9:30 AM (MDT)IN THE
COMMISSION'S HEARING ROOM,472 WEST WASHINGTON,BOISE,IDAHO.The
purpose of this hearing will be to take the technical evidence of the parties in this matter relating
to concerns and issues raised in the public hearings and comments,and whether the proposed
settlement is just,fair,and reasonable,in the public interest,or otherwise in accordance with law
or regulatory policy,in light of those concerns.The Company,and if they desire the intervenors
and Commission Staff,should be prepared to present live direct testimony at the hearing on these
issues and the proposed settlement.
YOU ARE FURTHER NOTIFIED that this hearing will be held in a facility that meets
the accessibility requirements of the Americans with Disabilities Act.In order to participate,
understand testimony and argument at a public hearing,persons needing the help of a sign language
interpreter or other assistance may ask the Commission to provide a sign language interpreter or
other assistance as required under the Americans with Disabilities Act.The request for assistance
NOTICE OF TECHNICAL i
ORDER NO.34101
must be received at least to ='
.·e ontacting the Commission
Secretary at:
IDAHO PUBLIC i l
PO BOX 83720
BOISE,ID 83720-0074
[phone] (TEl EPHI)\b
[phone] (FAX)
YOU ARE FURTHER NOTIFIED that the Commission is exploring options for
making the hearing available online,either through video and audio,or audio only.The
Commission will issue a separate notice of how to access the hearing online if and when those
details become available.
YOU ARE FURTHER NOTIFIED that all proceedings in this case will be held
pursuant to the Commission's jurisdiction under Title 61 of the Idaho Code and that the
Commission may enter any final order consistent with its authority under Title 61.
YOU ARE FURTHER NOTIFIED that all proceedings in this matter will be conducted
pursuant to the Commission's Rules of Procedure,IDAPA 31.01.01.000et seq.
NOTICE OF TECHNICAL H!
ORDER NO.34101
ORDER
IT IS HEREBY ORDERED that the Commission will hold a technical hearing on July
23,2018,at 9:30 AM (MDT)at the Commission hearing room to address public comments.
DONE by Order of ik ML ,I t hos (omon,«n at Boise,Idaho this 3
day of July 2018.
PAUL K I A ,PRESIDENT
K RTSTINE RAPER,C I ONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
AVUE1709 AVUG705 NDIl hk
NOTICE OF TECHNICAL HEARING
ORDER NO.34101