20180720notice_of_vacated_hearing_order_no_34111.pdf

Office of the Secretary
Service Date
July 20,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE 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 INTERVENTION
)NOTICE OF VACATED
)TECHNICAL HEARING
)ORDER NO.34111
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 whollyowned subsidiary of a Hydro One holding company.
On October 5,2017,the Commission set an October 26,2017,deadline for petitions
to intervene.The Commission granted timely-filed motions to intervene from Idaho Forest
Group,Clearwater Paper,Idaho Conservation League (ICL),the CommunityAction Partnership
Association of Idaho (CAPAI),and the Washington and Northern Idaho District Council of
Laborers (WNIDCL).Order Nos.33914,33916,33931,and 33932.On April 13,2018,the
Applicants filed a Motion for Approval of Stipulation notifying the Commission that all parties
had reached a full settlement.The Commission scheduled a Technical Hearing for June 27,2018,
that was later vacated and reset to July23,2018,to address issues raised by customers.See Order
Nos.33950,34061,and 34101.The Commission also granted intervention to an unincorporated
nonprofitcalled the Avista Customer Group.Order No.34109.
This order addresses two additional developments:(1)on July 9,2018,the Idaho
Department of Water Resources (IDWR)petitioned to intervene and notified the Commission
that IDWR plans to impose merger-related conditions on Avista's hydropower rights;and (2)
Hydro One's CEO and board of directors have resigned.
FINDINGS
Petitions to intervene are governed by Rules 71-75,IDAPA 31.01.01.071-.075.
Further,Idaho Code §61-328(4)requires the Commission to include any authorization or
condition imposed by the IDWR.Based on the record,we grant the IDWR's petition to
NOTICE OF INTERVENTION
NOTICE OF VACATED TECHNICAL HEARING
ORDER NO.34111 1
intervene.Pursuant to statute,IDWR clearly has a direct and substantial interest.We expect that
IDWR's participation will not unduly broaden the issues as required by Rule 74.We note that,
per Rule 73,the IDWR is bound by all prior orders and notices issued in the case.
With regard to the issues relating to Hydro One governance,we fmd that with the
number of questions raised by the resignations,it is imprudent to continue with the July 23,
2018,technical hearing.Rather,we find it reasonable to postpone the technical hearing until a
new CEO and executive board are in place at Hydro One.Applicants are directed to update the
Commission when the new management team is in place.If a CEO and new board are not in
place by August 15,2018,the Applicants are directed by the Commission to provide a status
update.The future hearing will be conducted through prefiled testimony;those deadlines will be
determined in a later order.Finally,the parties shall meet and confer to discuss a procedural
schedule once Hydro One has a new CEO and board of directors in place.
ORDER
IT IS THEREFORE ORDERED that the Idaho Department of Water Resources'
petition to intervene is granted.
IT IS FURTHER ORDERED that all parties in this proceeding serve all papers
hereafter filed in this matter on all parties of record.This Intervenor is represented by the
followingfor purposes of service:
Garrick L.Baxter
Deputy Idaho Attorney General
Idaho Department of Water Resources
PO Box 83720
Boise,Idaho 83720-0098
E-Mail:garrick.baxter idwr.idaho.gov
IT IS FURTHER ORDERED that the July 23,2018,Technical Hearing is vacated.
The parties shall meet and confer to discuss case processing after Hydro One has a new CEO and
board of directors in place.
IT IS FURTHER ORDERED that by August 15,2018,Applicants shall update the
Commission of progress relating to Hydro One executive governance.
NOTICE OF INTERVENTION
NOTICE OF VACATED TECHNICAL HEARING
ORDER NO.34111 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July2018.
PAI I KJELI.AND R,RESIDENT
KRI TINE RAPER MMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
AVUE1709 AVUGl705_IDWR_vacatehearing_bk
NOTICE OF INTERVENTION
NOTICE OF VACATED TECHNICAL HEARING
'mDFRNO.34111 3