Hydro One (TSX:H) and Avista (NYSE:AVA) on Jan. 15 said that in light of the recent decisions by Washington Utilities and Transportation Commission and the Idaho Public Utilities Commission to deny Hydro One’s proposed acquisition of Avista, the Oregon Public Utility Commission issued an order suspending indefinitely the current procedural schedule in its merger docket until the companies inform the Oregon commission that they have sought a reversal of the denial decisions through appeal or other means that would provide a justiciable issue for the Oregon commission to address.
The Oregon commission, in its Jan. 14 order, noted that the Washington commission in December 2018 found that the proposed transaction was “not consistent with the public interest” and denied the application. Earlier this month, the Oregon commission said, the Idaho commission found that approval of the merger would violate state law, and denied a request to approve the merger.
The fact of those denials is not the subject of dispute because it is generally known to all parties and can be accurately and readily determined from publications of both state commissions, the Oregon commission said.
“Having taken notice of the regulatory denials in Washington and Idaho, we determine that no justiciable controversy currently exists for us to resolve,” the Oregon commission continued. “The approval of the transaction in Washington and Idaho is necessary for the proposed agreement, and therefore impacts this proceeding directly. Accordingly, the commission will hold this proceeding in abeyance until the applicants inform the commission that they have sought a reversal of these decisions through appeal or other means that would provide a justiciable issue for the commission to address.”
The commission ordered that the current procedural schedule is suspended indefinitely.
As TransmissionHub reported, according to the Idaho commission’s Jan. 3 order, Avista in July 2017 announced that it had entered into a merger agreement with Hydro One, and in September of that year, jointly applied to the commission for an order approving the proposed merger. The commission noted that if it and other state regulators, as well as regulatory agencies, approve the merger, then Avista would become a wholly owned subsidiary of a Hydro One holding company.