Avista Corp. and Hydro One Ltd. announced March 16 a settlement in principle with concerned parties, including the Washington Utilities and Transportation Commission staff, over the companies' proposed merger.
The settlement in principle provides for the use of a portion of Avista's deferred federal income taxes to accelerate the depreciation schedule for Colstrip units 3 and 4 to reflect its remaining useful life through Dec. 31, 2027. It, however, does not reflect any agreement over the ultimate closure of the Colstrip units.
According to S&P Global Market Intelligence data, Avista owns a 10.0% interest in the Colstrip plant in Rosebud County, Mont.
Full details on the settlement will be disclosed upon its submission to the commission on or before March 27, according to a news release.
Parties to the agreement also include the public counsel unit of the Washington Office of Attorney General, the Northwest Industrial Gas Users, the Industrial Customers of Northwest Utilities, The Energy Project, Northwest Energy Coalition, Renewable Northwest, Natural Resources Defense Council, Sierra Club and the Washington and Northern Idaho District Council of Laborers.
Hydro One is acquiring Avista in an all-cash $5.26 billion deal, which is expected to close in the second half of 2018.
The deal already received approval from the Federal Energy Regulatory Commission on Jan. 16 and from shareholders on Nov. 21, 2017. In February, the Oregon Public Utility Commission staff recommended against approving the transaction.
