20180628Comments (12).pdf

June 22,2018
Idaho Public Utilities Commission
P.O.Box 83720
Boise,Idaho 83720-0074
CASE COMMENT
Case No.AVU-E-17-09
I strongly oppose the purchaseof Avista Corp.by Hydro One or any
other foreign entity.It is very disturbingto learn our federal
government has approved this application as well as others and as I
understand they have done so without any public hearings,comments
or other input.
First and foremost we must consider the large amount of news reports
of the vulnerable state of our national Power Grid of which the Avista
transmission assets are a part.The electric power supplied by Avista is
an essential life giving commoditynot available to the masses from any
other source.How many lives are at risk within the Avista service area
for only a short term blackout (considerthe extreme high and low
temperatures)?How about longer periods of blackouts?The electricity
supplied by Avista in Idaho is primary for life and must rate along with
food,water and health care and impacts all.Why would we choose to
allow foreign governments and or businesses access to ownership or
any control of our life giving necessities?
Case No.AVU-E-17-09
Dean Gentry
Case Comment
The reports of many utilities in America having been purchased by
foreign companiesgives me no comfort.
The government of Canada and Toronto may be a friend to our country
today and adversary tomorrow.Currently these governments are at
odds with climate control /global warming,with trade and tariffs and
also negation of a new Columbia River Treaty.No one has a perfect
know of future relations with other countries.
Large sums of money are at stake in this proposal.As of December 31,
2017 Avista Corp had expensed $8 million,and Hydro One reported
spending $36 million.It has been reported officers and key personnel
of Avista will receive $30 to $40 million if and when this proposal is
completed.In addition,those same persons have or will receive about
$10 per share of stock due to the announcement of this sale.As of
12/31/17 those persons owned 752,900 shares of avista stock totaling
Another $7,529,000.In addition there are reportedlyseverance
agreementsfot five executives for a combined $35.2 million.Avista
tells us this proposal is good for everyone.It certainly appears the
closing of this proposal will be good for the senior management and
directors.I would be better convinced of that if this group were giving
all of the personal gains to charities.It may be possible these amounts
of personalgains sponsor bias and emotions that influence decisions
that may not prove to be good for the Avista customers.I have
recently read John Wayne said "there is a little larceny in everyone".
The propose settlement agreement states that no cost related to this
Case No.AVU-E-17-09
Dean Gentry
Case Comment
Proposed transaction will be charged to the Avista customers.If not,
where will the money come from?
The agreement also states there will be no rate increase because of the
merger.How may the IPUC determine that when Hydro One applies for
a rate increase at a future date?How may you refuse an application for
a rate increase when the future service for reliable and safe electricity
is at risk even it is determined that risk was created by the merger?
Also,discussions of rates appear in most in not all reports of hearings
and news articles pertaining to the proposed merger.To the majority
of people in the hearingsand readers I believe the word rates really
means the amount of our monthly bill.When it is stated rates will not
increase,we assume our monthly bill will not increase unless we use
more electricity.I have recently learned different utilities submit
different monthly bills which contain billing for items other than the
price for the electricity.Some bills may have a separate charge for
meter reading,for billing,or as Avista has,a base rate none of which
charges for rates of electricity but are included in the total of the billed
amount due.We do not know what Hydro One bills their customer in
Toronto that may one day appear on the Avista bill as another form of
revenue for Hydro One but will not be a rate increase for the amount
of electricity used.I hope such deception will not be allowed by our
Commissioners.
Report of Hydro One support for Avista's expansionof renewable
energy is worrisome to me.I firmly believe both wind and solar energy
Case No.AVU-E-17-09
Dean Gentry
Case Comment
should not be forced upon utility customers.I believe wind and solar
are not dependable,too costly,are subsidized by taxes,manufacture
and maintenance add to carbons.I hope Idaho does not force this upon
us or allow Avista to bill Idaho customers for renewable energy in our
rates to pay for the costs in other states.
The proposed rate credits appear to be a sales tool;somewhat like an
auction bid for approval having increased to gain agreement with the
various state commissions approval.Please convert the $15.8 million
rate credit to the amount it will reduce the KWH rate.Is it a significant
amount?
While the sizeable charitable contributions are welcome,they most
definitely are a sales tool and not a true indication of the heart and
generosity of Hydro One management.Like the rate credits,the
charitable contributions are a short term commitment and based on
the fact Hydro One contributes only $1 million to all of the combined
communities of Toronto where they serve 1.3 million customers we
should not be surprised as a large part of the charitable contributions
end when the five year commitment period expires.
So I ask,why is Hydro One proposing to buy Avista?
Two writers for The Spokesman Review newspaper at Spokane wrote
"Canadian power companies have been buying American utilities for
several years,expanding their reach into the U.S.,which offers lighter
regulations and potentially higher revenues."Is this a complimentor
Case No.AVU-E-17-09
Dean Gentry
Case Comment
Challengeto our IPUCT
Two writers also state Hydro One "is heavily invested in renewable
energy,includinghydro,wind and solar.It also has nuclear energy in its
portfolio."After readingthis I wrote to NancyClark at Hydro One and
she replied "Hydro One does not currentlyown generation assets".
My curious part wonders why Hydro One is acquiring Avista and their
generating power plants.Currently Hydro One is in the business of
purchasingelectric power and transmitting and distributing it.It has
been reported hydro power is not considered as renewable energy in
Toronto.Hydro One is financing one hundred percent of the Canadian
$6.7 billion dollar price of Avista as follows;
1.Assumption of existing Avista Debt Canadian $2.6B,
2.Acombination of 5,10,30 year debt notes Canadian $2.56B,
3.Conversion of Convertible Debenture to equity C$1.54B
Hydro One currently pays of a little over 4%dividend on their stock.
Avista reported U.S.$115 million or near Canadian $153 million net
Income for their year ended 12/31/17.In order to recoup a 4%return
on the purchase of Avista the net income must increase to about
Canadian $265 million.That is an increase of C$112 million or about
73%.How might they do this?Often mergers and acquisitions achieve
efficiencies by reducing administrative staff and this does not seem
possible in this case if the commitments for keeping Avista employees
is kept.I do not know the value of the Avista hydro power generating
assets if they were to be sold but I suspect the proceeds of such a sale
case No.AVU-E-17-09
Dean Gentry
Case Comment
could raise a large portion of the C$6.7 B purchase price and allow
Hydro One to stick with their business of purchasing,transmission and
distribution here as they do in Toronto.Hydro One has purchased
three electric utility companies in Toronto since 2016.All without any
generating assets.Why enter into the generation business now,a
business they have no experience in?
News reports often point out Hydro One is a very large company with
more than $25 billion in assets with no mention to the fact Hydro One
has more than $15 billion in liabilities and if the merger is completed
Hydro One will be Canadian $32.2 Billion dollar company with C$22B
In liabilities with a large annual debt service and with a business
requiring large amounts of capital investment.The combined net
income for the year ended 12/31/17 of Avista and Hydro One was
about C$835 million.
It was reported that Scott Morris said:Both utilities are heavily
investing in infrastructure and technology and will benefit from
economies of scale."We can spread out our costs over a larger
customer base,"Morris said.Can anyone imagine the Hydro One
customers of Toronto (being the larger base)enjoying Avista costs
spread to them?
As I have stated earlier Avista and Hydro One are spending many,many
millions of dollars to achieve this proposed merger/acquisition.Those
millions of dollars are going to Wall Street lawyers,accountants and
merger and acquisition specialists who often are reported as making
Case No.AVU-E-17-09
Dean Gentry
Case Comment
millions of dollars and hundreds of millions of dollars in one year.They
are paid to make this proposal happen.This is a very heavy burden
placed upon the staff of our IPUC who we know are not paid that well
and do not deal with mergers and acquisitions on a daily basis or have
unlimited budget for outside expertise.
Many questions have been raised since the merger agreement was
announced on July 19,2017 along with many negative reports of the
the quality of service provided by Hydro One to their Toronto
customers.I hope our IPUC had searched for the facts and truths
of Hydro Ones performance.Hopefullyyou have access to reliable
sources similar to our Better Busines Bureau,Dunn and Bradstreet,
Standard and Pours or others to help you arrive at the facts you need.
If this proposal is approved I assume there is no turning back and no
method of enforcement of commitments by Hydro One or penalties
upon Hydro One.Thus any failures and inconsistencies resulting from
a merger will fall upon the customers of Avista.
The commitments agreed to have life of five years and it is doubtful
that any of the current management and directors will be with Avista
at the end of those five years.
I thank our Idaho Public Utilities Commission and staff for this
opportunity to submit my comments of opposition to the approval
of the proposed merger.
Case No.AVU-E-17-09
Dean Gentry
Case Comment
Sincerely,
Dean Gentry
P.O.Box 321
St.Maries,Idaho 83861
Case No.AVU-E-17-09
Dean Gentry
Case Comment
Diane Holt
From:[e-mail]
Sent:Thursday,June 28,2018 10:18 AM
To:BeverlyBarker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:Brett Bennett
Name:Brett Bennett
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:1021 Randall Flat Road
Moscow Idaho,83843
Name of Utility Company:Clearwater Power
Comment:My concern is my family operates 2 sawmills whom both use a considerable amount of inexpensive power
and we directly employ 260 people and indirectly employ hundreds more.With Avista being bought out by a out of
country company and control over that many dams and power production i feel it will be too easy for electricity prices to
go up to offset cost of purchase and that will gravely effect sawmills in region and cause more closures and loss of jobs.
Unique Identifier:64.126.160.168
1
Diane Holt
From:[e-mail]
Sent:Thursday,June 28,2018 11:04 AM
To:BeverlyBarker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:Leroy Gill
Name:Leroy Gill
Case Number:AVU-E_17-09
Email:[e-mail]
Telephone:[phone]
Address:6511 N Colfax St
Dalton Gardens Idaho,83815
Name of Utility Company:Avista
Comment:Since we as consumers have no choice in the company that we buy our natural gas and electricity from,the
possible sale of Avista to a Foreign Government is a disaster!I believe Avista has the wright to sell,but selling to a
Foreign entity is not in the best interest's of the Citizens of Idaho.
Unique Identifier:98.145.133.172
1
Diane Holt
From:[e-mail]
Sent:Thursday,June 28,2018 11:14 AM
To:BeverlyBarker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:JACK ABEL
Name:JACK ABEL
Case Number:
Email:[e-mail]
Telephone:
Address:4406 EAST 51ST LANE
SPOKANE WA,99223
Name of Utility Company:AVISTA
Comment:I AM TOTALLY AGAINST THIS SALE.WHAT IS THE REASON AND ARE THE BENEFITS FOR UTILITY USERS?
I WAS AGAINST THE NAME CHANGE FROM WASHINGTON WATER POWER.
WHAT PREVENTS HYDRO ONE SELLING CONTROLLING INTEREST TO THE CHINESE IN THE FUTURE.
THERE IS NO REASON FOR THIS SALE EXCEPT TO BENEFIT THOSE RECIPIENTS OF THE $51 MILLION.
Unique Identifier:73.42.210.159
1
Diane Holt
From:[e-mail]:Thursday,June 28,2018 8:41 AMTo:BeverlyBarker;Diane Holt;Erik Jorgensen;Matthew EvansSubject:Case Comment Form:Matt Rees
Name:Matt Rees
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:5012 E Union ave
SpokaneValley Washington,99212
Name of UtilityCompany:Avista
Comment:I Matt Rees as a Avista customer do not support the merger of Avista with a foreign owned company.
Unique Identifier:98.247.3.93
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 7:26 PM
To:BeverlyBarker;Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:John Samuelson
Name:John Samuelson
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:915 East 12th Ave
Post Falls ID,83854
Name of Utility Company:Avista
Comment:Comment:As a 50+year Avista consumer (Kenneth Samuelsonestate 2 Avista power meters presently and
many rentals prior)
I COMPLETELYOPPOSE THE MERGER of
Hydro-One and Avista,there is absolutely NO upside and many downsides to that plan.
Unique Identifier:207.170.236.210
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 6:10 PM
To:BeverlyBarker;Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:Tim Carson
Name:Tim Carson
Case Number:
Email:motorhommie@ gmail.com
Telephone:
Address:14007 N Newport Hwy
Mead Wa,99021
Name of Utility Company:Avost
Comment:Foreign countries should not own our power.The grid is imperative to our security and safety and not to be
trusted to out of country sources.
Unique Identifier:174.216.10.151
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 6:04 PM
To:BeverlyBarker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:michelle hadian
Name:michelle hadian
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:PO BOX 715
Chattaroy WA,99003-0715
Name of Utility Company:Avista
Comment:Please DO NOT approve the merger!!!WE are in WA State and haveAvista,and are extremely concerned
about the effects of this merger,if approved.
If approved,Avista would be fullyowned by a foreign company which is controlled by the Province of Ontario holding
41%of its shares and maintains control over Hydro One.Hydro One operates under Canadian law and is governed by the
Green Energy Act and other energy policies.Avista would be operating under foreign laws if this merger is approved.
The founder of Hydro One is Maurice Strong,a declared socialist who was considered the Father of False Global
Warming,and was the promoter of Global Governance by the UN,where he was the Energy Program Founder and
architect of the Kyoto Protocol.
Unique Identifier:174.31.199.71
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 5:37 PM
To:BeverlyBarker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:Deanna Bramblett
Name:Deanna Bramblett
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:701 W CollegeAve Suite 101
St.Maries ID,83861
Name of Utility Company:Avista Corp
Comment:Benewah County is concerned about the impact that the proposed Hydro One/Avista merger will have on the
ownership and control of Avista's dams,particularly the Post Falls dam,lake and river levels,water rights and all of the
associated economies.
Since Hydro One and Avista have not addressedthese concerns or provided information to the Commission on these
issues,the merger application should be denied.
Respectfully,
BENEWAH COUNTY BOARD OF COMMISSIONERS
BY:Deanna Bramblett,clerk
Unique Identifier:199.253.26.82
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 5:34 PM
To:BeverlyBarker;Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:Dennis Lydeen
Name:Dennis Lydeen
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:[phone]
Address:2805 N Fruitland Ln
Coeur d Alene Idaho,83815
Name of Utility Company:Avista utilities
Comment:Please do not sell to Canada Hydro 1 Please keep Avista co as the Power company Don't make it a Monopoly
Look what happened to the deregulation of the Phone company's.Keep the moneys in the USA so NO to outside
buyout.
Just look at a bigger picture and see what happened in New York and the other Eastern states The big picture of
controllingthe water ways for power will effect the fisheries and Dams Now we have control the big sellout will only line
the pockets of the CEO's and the customers will have to pay more so Please don't let it happen Thankyou
Unique Identifier:12.54.92.10
1
Diane Holt
From:[e-mail]
Sent:Wednesday,June 27,2018 5:13 PM
To:Beverly Barker Diane Holt;Erik Jorgensen;Matthew Evans
Subject:Case Comment Form:James Larned
Name:James Larned
Case Number:AVU-E-17-09
Email:[e-mail]
Telephone:
Address:
Sandpoint ID,83864
Name of Utility Company:Avista
Comment:I am adamantly opposed to the proposed sale of Avista to Hydro One.It makes no sense for a foreign
company to control our electrical infrastructure and dams.Hydro One also has a horrid track record.This is a horrible
deal and will be terrible for Idahoans.Please don't allow this sale.
Unique Identifier:50.120.67.161
feanette Bradley
444 E Dragonfly Drive
coeurd'Alene,ID 83815 «-CElVED
June 25,2018
-C
SS O ,
Public Utilities Commission
PO Box 83720
Boise,ID 83720-0074
RE:Case Comment,AVU-E-17-09/AVU-G-17-05
To whom it may concern;
I am a current Avista electric and natural gas customer residing in coeur d'Alene,Idaho and wish to express my concern
over the announcement of my utility provider,Avista and the proposed sale of the corporation with Pacific Northwest
assets and services provided to me.
Currently,both natural gas and electrical rates charged to home owners like myself;are relative to the wages earned in
North Idaho.While we struggle to feed family,pay a mortgage and utility bills to provide heat,water and electric,Idaho
does find itself to be on the growing end of population increasing at an alarming rate.As published in the "Inlander"
dated January 11,2018,"Coeur d'Alene is the fastest growing metropolitan area in the fastest growing state in the
nation,United States Census Bureau data shows the 11th Ÿ85test in the country."Predictions from the Census Bureau
predict 51,000 to 81,000 by 2035 in Coeur d'Alene alone.Post Falls,Idaho will surpass Coeur d'Alene's population
between the years of 2025 and 2027.
Fleeing other states in favor of North Idaho's (current)low cost of living,in one year (July 2016-2017)Idaho grew 2.2%
more than other states in the country,or an increase of 37,000 people.
The increase of people and the demands of basic needs such as electricity,natural gas,and water falls not only to living
quarters,but to businesses including schools for the increase in power consumption.There can only be the reality of a
growing need in these utility areas.
Growth is not only in the Pacific Northwest,but to the north of us in Canada and to date reports indicate the Canadian
deliverance of basic utilities is falling very short to meet with basic need.
Hydro One has 1.3 million "valued"customers in the Ontario area alone.Ontario's government currently owns 47%of
Hydro One with full disclosure of the remaining 53%not clearly recognized to the general public.
53%of any business which may be sold at any point in time should be a red flag to our Public Utilities Commissionwhen
considering this Avista sale.
While rates remain relatively low (currently)in the Pacific Northwest,the utility rates for customers in Canada have not
only continually increased but are driven by availability.A purchase of Avista should adjust and possibly lower Canadian
customer's charges;however,studies have proven 25%of electricity is lost in transit.My concern in regards to the
electric source created from Avista being diverted to Canadian usage first,with up sale charges passed back to North
Idaho not only increasing rates,but making the availability less to those at the source of creation.With less available,
the need will too drive an increase in rates.
Along with the creation of electricity from hydro dams,where are the hiccups with tribal councils,those who actually
own the waterways where Avista has placed hydro dams?Are the local councils in agreement with a foreign entity
taking over control of ownership for an original local owner?
We have seen US investors value growth of population,while to the North the Canadian investors value dividends,what
better way to make a profit,than sell BACK electricity made in the PNW for high dividend yield?
Other areas for this commission to consider are the assets owned by Avista and the shift to foreign control over the
assets.There will always be buyers,53%of Hydro One may or may not be multiple investors looking to only make profit
on their investment.This sale could trade hands multiple times,with an increase on cost to the American consumer.
The only givens so far,are the growth coming to Idaho,growth in population,which will drive business and education
structure growth.The need is here and my feeling and concern is that this Public Utilities Commission places value on
the population here first.The basic need for light,heat,and a means to prepare or store food for consumption in our
homes and at a local and/or regional level are very relevant to survival and why we have created councils for oversight
and require your involvement at this time.
Please consider:
1)The assets Avista owns and would be transferred without US control and zero ability to hit reset or undo after
a sale.
2)The expected growth to our area and the growing need for continued support
3)The rate change and realistic increase in rates due to a sale for another country that will place that country's
needs first over where the energy is trulycreated.
4)A foreign government owning a large part of the utility company purchasing ownership of assets,and utility
creation within our country's boundary.
The decision this commission makes will affect thousands of people for decadesto come,and should not be considered
only on a monetary basis.
I thank you for your time.
Respectfully,
Jeanette Bradley