Hydro One to Acquire Avista to Create Growing North American Utility Leader

Hydro One and Avista

 

July 26, 2017

Hydro One will acquire Avista for C$67 (US$53) per share in a C$6.7 billion (US$5.3 billion) all-cash transaction. Together, Hydro One and Avista will create a North American leader in regulated electricity and natural gas business with over C$32.2 billion (US$25.4 billion) in combined assets. The transaction brings together two industry-leading regulated utilities with over 230 years of collective operational experience as well as shared corporate cultures and values. The combined entity will safely and reliably serve more than two million retail and industrial customers and hold assets throughout North America including Ontario, Washington, Oregon, Idaho, Montana and Alaska. 

“This marks a proud moment for Canadian champions as we grow our business into a North American leader,” said Mayo Schmidt, President and CEO, Hydro One Limited. “This transaction demonstrates the power and value of the transition into an investor-owned utility, by allowing for healthy expansion into new lines of regulated utility business and new jurisdictions, such as the U.S. Pacific Northwest which is experiencing customer and economic growth.” 

“With a focus on operational excellence and building our earnings streams, we are positioned for long-term, sustainable growth,” said Schmidt. “We are further accomplishing this goal by bringing together two companies with shared cultures and industry expertise to create a North American regulated utility leader. This combination means greater scale, diversity and financial flexibility.” 

This strategic combination demonstrates the value of consolidation by bringing together two highly complementary platforms to create one of North America’s largest regulated utilities, meaningfully enhancing both shareholder and customer value. In addition, over time, non-headcount efficiencies will be realized through collaboration and sharing of best practices on IT, innovation and supply chain purchasing, all of which will further enhance cost savings. No workforce reductions are anticipated as a result of this transaction for either Avista or Hydro One.

Avista Corporation Chairman, President and CEO Scott Morris said, “For Avista, the decision to team up with Hydro One at a time of strength and growth represents a win for our customers, employees, shareholders and the communities we serve. Through this agreement, we have a unique opportunity to secure a partnership that allows us to continue to define and control, to a significant degree, future operations and opportunities in a consolidating industry landscape for the benefit of our customers. In Hydro One, we believe we’ve found a partner that allows us to preserve our identity and our proud legacy, while also preparing us for the future. We look forward to joining forces with Hydro One and its dynamic team.” 

“This is the coming together of two highly respected and reputable companies steeped in history and shared commitment to the communities they serve. Both teams also share a common vision and a dedication to serving customers safely and reliably every day,” said Schmidt. 

“The strength of the combined company enables the accelerated deployment of innovation programs and infrastructure upgrades for the benefit of customers while continuing to deliver on shareholder expectations for consistent, healthy, financial performance. Together, we will deliver even more possibilities for the shareholders, customers, employees, and communities we have the privilege of serving,” said Schmidt. 

The transaction was unanimously approved by the Boards of Directors of both companies and is expected to close in the second half of 2018, subject to Avista common shareholder approval and certain regulatory and government approvals and clearances, including approval by the Washington Utilities and Transportation Commission, the Public Utility Commission of Oregon, the Idaho Public Utilities Commission, the Regulatory Commission of Alaska, the Public Service Commission of the State of Montana, the U.S. Federal Energy Regulatory Commission, clearance by the Committee on Foreign Investment in the United States and compliance with applicable requirements under the U.S. Hart­-Scott-­Rodino Antitrust Improvements Act of 1976, as amended, and the satisfaction of customary closing conditions.

For more information:

http://www.hydroone.com/OurCompany/MediaCentre/Pages/Newsroom.aspx

Related Articles


Latest Articles

  • Ontario Solar Incentives with Essex Energy

    Ontario Solar Incentives with Essex Energy

    August 20, 2025 Essex Energy is helping municipalities, universities and colleges across Ontario take advantage of incentives under Ontario’s Retrofit DER Program including solar photovoltaic (PV) systems. What’s Available Significant rebates available to eligible businesses and institutional organizations deploying rooftop or parking lot solar PV systems. These incentives are paid upon completion of the project, accelerating project… Read More…

  • Beyond the Bid: How Modern Estimating Solutions Drive Contractor Success

    Beyond the Bid: How Modern Estimating Solutions Drive Contractor Success

    August 18, 2025 By Brooke Stewart In today’s fast-paced construction landscape, electrical contractors are constantly pressured to keep their estimates competitive, often at the expense of healthy profit margins. Compounding this challenge are rising material costs, a shortage of skilled labor and siloed data, all of which make it increasingly difficult to stay competitive and… Read More…

  • Hammond Power Solutions Helps EFC Champion Sustainability as First Carbon Neutral Sponsor at Annual Industry Conference

    Hammond Power Solutions Helps EFC Champion Sustainability as First Carbon Neutral Sponsor at Annual Industry Conference

    August 18, 2025 By Electro-Federation Canada Did you know that carbon emissions from this year’s Annual Industry Conference were offset? With the help of Hammond Power Solutions (HPS), EFC took an important step toward reducing our environmental impact by offsetting the emissions associated with the event. This milestone reflects a growing commitment within the electrical… Read More…

  • FortisBC Detail Impact of their Energy-Efficiency Programs in 2024

    FortisBC Detail Impact of their Energy-Efficiency Programs in 2024

    August 18, 2025 In 2024, FortisBC Energy Inc. and FortisBC Inc.’s (collectively FortisBC) conservation and energy-efficiency programs helped lower gas and electricity use while helping create more comfortable living and working spaces for customers. Building on 2023 reductions, its gas programs cut close to one million tonnes of carbon dioxide equivalent (tCO₂e) 1 in 2024. “Our customers’… Read More…


Changing Scene

  • Blackline Safety Announces Quality Assurance Program Expansion

    August 18, 2025 Blackline Safety Corp. has announced a major expansion of its quality assurance (QA) program. As part of the expansion, the company has increased its QA team, upgraded its inspection equipment, and boosted in-lab testing of its entire product line. Headquartered in Canada with offices in the UK, France, U.S., and UAE, Blackline… Read More…

  • EB Horsman Introcuce New Burnaby Branch Manager

    EB Horsman Introcuce New Burnaby Branch Manager

    August 18, 2025 EB Horsman & Son is pleased to announce the promotion of Sean O’Brien to Branch Manager of their Burnaby location, effective August 6, 2025. Sean brings over 15 years of experience in the electrical and lighting industry, with a strong background in sales, technical leadership, project management, and clean energy initiatives. He… Read More…

  • BCCA Response to “Report on 2026 Budget Consultation”

    BCCA Response to “Report on 2026 Budget Consultation”

    August 18, 2025 BCCA is pleased to receive the Standing Committee on Finance and Government Services’ Report on the 2026 Budget Consultation, and celebrates the emphasis placed on supporting BC’s construction industry and workforce. Chris Atchison, President of the BCCA, spoke to the Committee on the recommendations and priorities of BC’s construction industry. These included:… Read More…

  • NSAA Introduces Mentorship for Women Apprentices Program

    NSAA Introduces Mentorship for Women Apprentices Program

    August 18, 2025 This program is designed to support the retention and progression to certification of women apprentices in the 39 Red Seal Construction or Manufacturing trades. The program pairs women apprentices with experienced tradespeople to provide guidance, career development, and support throughout their apprenticeship journey. The program is for 6 months, with the mentor and… Read More…