Avista, Hydro One hearing postponed

By JUDD WILSON

Hagadone News Network

COEUR d’ALENE — Following the July 11 resignation of Hydro One CEO Mayo Schmidt and the departure of Hydro One’s entire board of directors, a spokesman for the Idaho Public Utilities Commission said Thursday that a technical hearing scheduled for July 23 has been postponed indefinitely.

“The Commission will hold a prehearing conference as soon as a new CEO and board are in place at Hydro One, to establish a new procedural timeline for the case,” spokesman Matt Evans said.

On Wednesday, representatives from Avista and Hydro One sounded a resolute note in an update to the IPUC.

The change in Hydro One’s board of directors “may result in modest delays in obtaining regulatory approvals,” wrote Kevin Christie, vice president for external Affairs for Avista Corp., and James Scarlett, chief legal officer for Hydro One, Ltd. However, the two parties “continue to believe that approvals will be forthcoming because the transaction is in the interests of Avista’s ratepayers and the public.”

“Hydro One and Avista also acknowledge that, given recent events in Ontario, additional time may be necessary to understand the implications of those events to Avista. We also acknowledge that additional, or modified commitments related to Avista governance may be necessary to alleviate any lingering concems that the province of Ontario could affect Avista and its operations. We remain open to addressing those concerns in a manner that satisfies your and our needs,” wrote Christie and Scarlett.

Christie and Scarlett explained that additional safeguards will be put in place to protect Avista employees. The pair wrote that decisions on employee compensation will be at the Avista board of directors’ discretion, not Hydro One’s. Also, compensation determinations made by the Avista board will not be subject to change by Hydro One.

Norm Semanko, attorney for the Avista Customer Group, told The Press: “We are encouraged by the Commission’s principled, deliberate approach to this very troubling merger proposal. It is not being rushed through, as Hydro One and Avista have previously requested.”

However, he continued to express skepticism that the deal would be advantageous to Avista customers, or meet legal requirements.

“It is doubtful that a new board, a new CEO and more time to prepare for the hearing are going to change that,” he said.