20180831order_no_34136.pdf

Office of the Secretary
Service Date
August 31,2018
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 )ORDER NO.34136
On July 19,2017,Avista and Hydro One (the "Applicants")announced they had
entered into a merger agreement.On September 14,2017,the Applicants jointly applied for
approval of the merger.Assuming other public utilities'commissions approve the Applicants
similar filings in their states,this Commission's approval of the Application would result in
Avista becoming a whollyowned subsidiary of a Hydro One holding company.The following
parties intervened in this case:Idaho Forest Group,Clearwater Paper,Idaho Conservation
League,the Community Action Partnership Association of Idaho,the Washington and Northern
Idaho District Council of Laborers,an unincorporated nonprofit called Avista Customer Group
(ACG),and the Idaho Department of Water Resources (IDWR).
On April 13,2018,the Applicants and Commission Staff filed a Motion for Approval
of Stipulation.The Motion notified the Commission that all parties (except for ACG and IDWR,
which had not yet intervened in the case)'had signed a settlement Stipulation to fully resolve the
case.
As part of its review process,the Commission issued notice of the 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.To date,Commission Staff,Community Action Partnership,
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.On July 3,2018,the Commission scheduled a July
23,2018,technical hearing for the parties to specifically address the concerns and issues raised
in public comments and testimony.
'ACG and IDWR did not intervene until two months after settlement was reached,and they are not parties to the
proposed settlement.On July 25,2018,IDWR reached a separate agreement with the Company regarding
subordination of Avista's Post Falls water rights,and as a result now supports the proposed settlement.ACG
opposes the proposed merger.
ORDER NO.34136 1
In mid-July,however,the Commission learned that the Hydro One CEO and board of
directors had resigned-apparently removed by the company's largest shareholder,the province
of Ontario,Canada.The managernent change and the post-settlement intervention of ACG and
IDWR led the Commission to vacate the technical hearing.Order No.34111.The Commission
also directed the parties to meet and confer to discuss further case processing after Hydro One
named a new CEO and board of directors.
On August 15,2018,the Applicants reported to the Commission that a new Hydro
One board of directors had been named,but that a permanent CEO would not be hired until a
later date.The Applicants requested that the Commission direct the parties to meet and confer
about re-establishing a case schedule despite the CEO not yet being named.In response,ACG
noted the Commission had clearly ordered the parties not to meet until after the board and CEO
are put in place.
DISCUSSION
The ACG is correct in its literal reading of Commission Order No.34111.Our order
contemplated designation of a board and CEO prior to resetting a procedural schedule.However,
at this time,we find that directing the parties to discuss a schedule for further case processing is
appropriate to expedite proceedings,and will allow the parties to consider the supplemental
proceedings in other jurisdictions when developing a proposed schedule.Once a proposed
schedule is developed,Commission Staff shall report the proposed schedule to the Commission.
ORDER
IT IS HEREBY ORDERED that the parties meet and confer to develop a proposed
schedule,and that Staff report that proposed schedule to the Commission.
ORDER NO.34136 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2018.
PAl'L KJELLANDER.PRESIDENT
KRÊINE RAPER,C ONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
AVUE1709 AVUGI705 meet.confer bk
ORDER NO.34136 3