Hydro One, Avista Reach Settlement In Principle In Washington Merger Case

(RTTNews) - Hydro One Limited (H.TO) and Avista Corp. (AVA) said that they have reached a significant milestone in the regulatory approval process of the proposed merger. According to the companies, notification of a settlement in principle with various parties was filed with the Washington Utilities and Transportation Commission or WUTC.

The two parties intend to file a settlement agreement with the WUTC on or before March 27, 2018. The settlement in principle is subject to the review and approval of the WUTC.

Hydro One and Avista continue to anticipate closing the transaction in the second half of 2018. The transaction received approval from the Federal Energy Regulatory Commission or FERC on January 16, 2018 and from Avista shareholders on November 21, 2017.

The settlement in principle includes provisions related to financial protections for the utility and its customers, low income customers, conservation and the environment.

Avista said that the settlement in principle also incorporates the use of a portion of the company's deferred federal income taxes for the purpose of accelerating the depreciation schedule for Colstrip Units 3 and 4 to reflect a remaining useful life of those units through December 31, 2027.

This settlement in principle does not reflect any agreement with respect to the ultimate closure of Units 3 and 4.