Hydro One Ltd. and Avista Corp. announced June 4 that the companies received the approval of the Regulatory Commission of Alaska for their proposed $5.26 billion merger, giving the deal all required approvals in the state.
Conditions of the approval include: maintaining the capital structure of Avista subsidiary Alaska Electric Light and Power Co. at previously ordered debt and equity levels, the transaction costs will not be recovered via rates, the assigning of costs related to services between Avista and AEL&P will be subject to review and approval by the commission, AEL&P will retain its management and continue to operate independently and the companies must accept all commitments filed with the commission.
"The RCA's decision affirms the commitments we've made to the residents of Juneau, who can expect their utility to continue to operate as it does today," Avista Chairman and CEO Scott Morris said in a June 4 release.
The merger is now pending approvals from utility regulators in Idaho, Oregon, Montana and Washington. The companies have already filed all-parties, all-issues settlement agreements in Alaska, Idaho, Oregon and Washington.
The transaction has received approvals from the U.S. Committee on Foreign Investment, the Federal Communications Commission, the Federal Trade Commission, the Federal Energy Regulatory Commission and Avista shareholders.
The merger is expected to close during the second half of 2018.
