Avista and Hydro One have announced they’re terminating their agreement to merge. This comes after a series of regulatory rulings that went against the proposed acquisition.
The two companies say, given denials of the merger by the utility commissions in Washington and Idaho, it’s time to give up on the idea.
A joint press release mentions the companies considered the likelihood of reversing the orders from the two agencies. And they decided that “termination of the merger agreement is the best course of action for the companies and their respective shareholders.”
The last blow came two weeks ago when the Washington Utilities and Transportation Commission said it would take no action on the companies’ request that the agency reconsider its earlier denial.
Regulators in both states cited political interference by the new Ontario government and Premier Doug Ford when he took office last June. He forced resignations of the Hydro One board and the CEO. Commission members said, despite what officials from the two companies said, the actions showed Avista and its customers were not protected from political influence.
The press release says Hydro One will satisfy its end of the merger agreement by paying Avista a $103 million termination fee.