Hydro One and Avista
Hydro One and Avista mutually agree to end proposed merger
On January 23, 2019, Hydro One and Avista announced that the companies have mutually agreed to terminate their merger agreement, following the recent orders from the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission, which denied approval of the merger.
After careful consideration and analysis of the likelihood of achieving a timely reversal of those orders, the Boards of Directors of both companies determined that terminating the merger is the appropriate course of action.
While we are disappointed in the outcome, we remain the same strong and vibrant utility we were prior to agreeing to the deal more than a year and a half ago. Our mission and focus remains to deliver safe, reliable energy to our customers and our communities across the areas we serve.
Q&A About the Merger Termination
Avista and Hydro One mutually agreed to terminate our previously announced merger agreement following the recent orders by the Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission which denied approval of the merger.
After careful consideration and analysis of the likelihood of achieving a timely reversal of those orders prior to the expiration of the merger agreement on March 29, the Boards of Directors of both companies each individually determined that terminating the merger agreement was the best course of action.
Yes. Avista has succeeded and thrived over its nearly 130-year history as an independent company, and we are confident that we will continue to do so.
It’s business as usual. Customers can expect the same level of service and reliability they have come to expect from Avista.
We remain committed to the communities we serve, and plan on maintaining the same level of community support we have always provided. As the merger was not completed, neither Hydro One nor Avista is obligated to fulfill the various commitments that would have been made if the transaction occurred. Under the structure of the agreements, the commitments would have been funded by Hydro One. This is no longer the case with the termination of the merger.
Customer rates will not be affected as a result of the termination of the merger, and any transaction-related costs will not be included in customer rates. True to our values, our goal going forward will be what it has always been – to provide exceptional service at reasonable costs.
Avista will collect a breakup fee from Hydro One of $103 million. After payment of applicable income taxes and transaction costs payable in 2019, the balance of the termination fee will be used for general corporate purposes and may reduce our need for external financing.