Hydro One Avista deal hits roadblock again

Bloomberg

Idaho regulators rejected Hydro One Ltd’s $3.4 billion takeover of Avista Corp, the second time state officials cited political risks in Ontario as grounds to nix the Canadian company’s effort to buy the US utility.
The Idaho Public Utilities Commission said “the management of Hydro One is subject to the province’s political pressure,” and the takeover would therefore be prohibited under Idaho law, according to a statement. The sale of Spokane, Washington-bas-ed Avista can’t proceed without approval from state regulators.
The denial comes a month after Washington state rejected the deal, citing Ontario Premier Doug Ford’s decision in July to oust the board of Hydro One, which is 47 percent owned by
the provincial government. Ford, a businessman who swept into office last year on a populist wave, made electricity bills a key election issue and vowed to shake up the utility’s executive team.
“It is abundantly clear that the province does not have to own 51 percent of Hydro One in order to effectively control the company,” Idaho regulators said in their ruling. “Based on the recent events surrounding the province’s intrusions into Hydro One corporate affairs, any other conclusion would be unreasonable and ignorant.”
Hydro One agreed to buy Avista in July 2017 to add energy production and distribution operations in Washington, Idaho, Oregon and Alaska. The Toronto-based company would owe Avista a $103 million breakup fee if the merger isn’t approved by regulators, according to a filing.