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Hydro One-Avista acquisition sparks Idaho regulatory scrutiny over foreign ownership, utility merger impacts, rate credits, and public interest, as FERC and FCC approvals advance and consumers question governance, service reliability, and long-term rate stability.

Key Points

A cross-border utility merger proposal with Idaho oversight, weighing foreign ownership, rates, and reliability.

✅ Idaho PUC review centers on public interest and rate impacts.

✅ FERC and FCC approvals granted; state decisions pending.

✅ Avista to retain name and Spokane HQ post-transaction.

“Please don’t sell us to Canada.” That refrain, or versions of it, is on full display at the Idaho Public Utilities Commission, which admittedly isn’t everyone’s go-to entertainment site. But it is vitally important for this reason: the first big test of the expansionist dreams of the politically tempest-tossed Hydro One, facing political risk as it navigates markets, rests with its successful acquisition of Avista Corp., provider of electric generation, transmission and distribution to retail customers spread from Oregon to Washington to Montana and Idaho and up into Alaska.

The proposed deal — announced last summer, but not yet consummated — marks the first time the publicly traded Hydro One has embarked upon the acquisition of a U.S. utility. And if Idahoans spread from Boise to Coeur d’Alene to Hayden are any indication, they are not at all happy with the idea of foreign ownership. Here’s Lisa McCumber, resident of Hayden: “I am stating my objection to this outrageous merger/takeover. Hydro One charges excessive fees to the people it provides for, this is a monopoly beyond even what we are used to. I, in no way, support or as a customer, agree with the merger of this multi-billion-dollar, foreign, company.”

#google#

Or here’s Debra Bentley from Coeur d’Alene: “Fewer things have more control over a nation than its power source. In an age where we are desperately trying to bring American companies back home and ‘Buy American’ is somewhat of a battle cry, how is it even possible that it would or could be allowed for this vital necessity … to be controlled by a foreign entity?”

Or here’s Spencer Hutchings from Sagle: “This is an incredibly bad idea.”

There are legion of similar emails from concerned consumers, and the Maine transmission line debate offers a parallel in public opposition.

The rationale for the deal? Last fall Hydro One CEO Mayo Schmidt testified before the Idaho commission, which regulates all gas, water and electricity providers in the state. “Hydro One is a pure-play transmission and distribution utility located solely within Ontario,” Schmidt told commissioners. “It seeks diversification both in terms of jurisdictions and service areas. The proposed Transaction with Avista achieves both goals by expanding Hydro One into the U.S. Pacific Northwest and expanding its operations to natural gas distribution and electric generation. The proposed Transaction with Avista will deliver the increased scale and benefits that come from being a larger player in the utility industry.”

Translation: now that it is a publicly traded entity, Hydro needs to demonstrate a growth curve to the investment community. The value to you and me? Arguable. This is a transaction framed as a benefit to shareholders, one that won’t cause harm to customers. Premier Kathleen Wynne is feeling the pain of selling off control of an essential asset. In his testimony to the commission, Schmidt noted that the Avista acquisition would take the province’s Hydro ownership to under 45 per cent. (The Electricity Act technically prevents the sale of shares that would take the government’s ownership position below 40 per cent, though acquisitions appear to allow further dilution. )

Stratospheric compensation, bench-marked against other chief executives who enjoy similarly outsized rewards, is part of this game. I have written about Schmidt’s unconscionable compensation before, but that was when he was making a relatively modest $4 million. Relative, that is, to his $6.2 million in 2017 compensation ($3.5 million of that is in the form of share based awards).

Should the acquisition of Avista be approved, amendments to the CIC, or change in control agreements, for certain named Avista executive officers will allow them to voluntarily terminate their employment without “good reason.” That includes Scott Morris, the company’s CEO, who will exit with severance of $6.9 million (U.S.) and additional benefits taking the total to a potential $15.7 million.

Back to the deal: cost savings over time could be achieved, Schmidt continued in his testimony, though he was unable to quantify those. The integration between the two companies, he promised, will be “seamless.” Retail customers in Idaho, Washington and Oregon would benefit from proposed “Rate Credits” equalling an estimated $15.8 million across five years, even as Hydro One seeks to redesign its bills in Ontario. Idahoans would see a one per cent rate decrease through that period.

While Avista would become a wholly owned Hydro subsidiary, it would retain its name, and its headquarters in Spokane, Wash. In the case of Idaho specifically, a proposed settlement in April, subject to final approval by the commission, stipulates agreements on everything from staffing to governance to community contributions.

Will that meet the test? It’s up to the commission to determine whether the proposed transaction will keep a lid on rates and is “consistent with the public interest.” Hydro One is hoping for a decision from regulatory agencies in all the named states by mid-August and a closing date by the end of September, though U.S. regulators can ultimately determine the fate of such deals. The Federal Energy Regulatory Commission granted its approval in January, followed last week by the Federal Communications Commission. Washington and Alaska have reached settlement agreements. These too are pending final state approvals.

The $5.3-billion deal (or $6.7 billion Canadian) is subject to ongoing hearings in Idaho, and elsewhere rate hikes face opposition as hearings begin. Members of the public are encouraged to have their say. The public comment deadline is June 27.

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OEB Disconnection Ban shields Ontario residential customers under the stay-at-home order, pausing electricity distributor shutoffs for non-payment and linking COVID-19 Energy Assistance Program credits for small businesses, charities, and overdue utility bills.

Key Points

A pause on electricity shutoff notices during Ontario's stay-at-home order, with COVID-19 bill credits for customers.

✅ Distributors cannot issue residential disconnection notices.

✅ Applies through the stay-at-home order timeline.

✅ CEAP credits: $750 residential; $1,500 small biz and charities.

With Ontario now into the third province-wide lockdown, the Ontario Energy Board (OEB) has promised residents won't have to worry about their power being shut off.

On April 8, the Province issued the third stay-at-home order in the last 13 months which is scheduled to last for 28 days until at least May 6, as electricity rates and policies continue to shift.

On April 30, the annual winter disconnection ban is set to expire, meaning electricity distributors like Hydro One would normally be permitted to issue disconnection notices for non-payment as early as 14 days before the end of the ban.

However, the OEB has announced changes for electricity consumers that prohibit electricity distributors from issuing disconnection notices to residential customers for the entirety of the stay-at-home order.

Additionally, the COVID-19 Energy Assistance Program is available for residential, small business, and registered charity customers who have overdue amounts on their electricity or gas bills as a result of the pandemic, complementing support for electric bills introduced during COVID-19, and the fixed COVID-19 hydro rate that helped stabilize costs.

Those who meet these criteria are eligible for credits up to a maximum of $750 for residential customers and $1,500 for small businesses and charities, alongside earlier moves to set an off-peak price to ease costs.

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Maritime Electric Hurricane Irma Response details utility crews aiding Turks and Caicos with power restoration, storm recovery, debris removal, and essential services, coordinated with Fortis Inc., despite limited equipment, heat, and over 1,000 downed poles.

Key Points

A utility mission restoring power and essential services in Turks and Caicos after Irma, led by Maritime Electric.

✅ Over 1,000 poles down; crews climbing without bucket trucks

✅ Restoring hospitals, water, and communications first

✅ Fortis Inc. coordination; 2-3 week deployment with follow-on crews

Maritime Electric has sent a crew to help in the clean up and power restoration of Turks and Caicos after the Caribbean island was hit by Hurricane Irma, a storm that also saw FPL's massive response across Florida.

They arrived earlier this week and are working on removing debris and equipment so when supplies arrive, power can be brought back online, and similar mutual aid deployments, including Canadian crews to Florida, have been underway as well.

Fortis Inc., the parent company for Maritime Electric operates a utility in Turks and Caicos.

Kim Griffin, spokesperson for Maritime Electric, said there are over 1000 poles that were brought down by the storm, mirroring Florida restoration timelines reported elsewhere.

"It's really an intense storm recovery," she said. 'Good spirits'

The crew is working with less heavy equipment than they are used to, climbing poles instead of using bucket trucks, in hot and humid weather.

Griffin said their focus is getting essential services restored as quckly as possible, similar to progress in Puerto Rico's restoration efforts following recent hurricanes.

The crew will be there for two or three weeks and Griffin said Maritime Electric may send another group, as seen with Ontario's deployment to Florida, to continue the job.

She said the team has been well received and is in "good spirits."

"The people around them have been very positive that they're there," she said.

"They've said it's just been overwhelming how kind and generous the people have been to them."

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UK Energy Networks Coronavirus Contingency outlines ESO's lockdown electricity demand forecast, reduced industrial and commercial load, rising domestic use, Ofgem guidance needs, grid resilience, control rooms, mutual aid, and backup centers.

Key Points

A coordinated plan with ESO forecasts, safeguards, and mutual aid to keep power and gas services during a lockdown.

✅ ESO forecasts lower industrial use, higher domestic demand

✅ Control rooms protected; backup sites and cross-trained staff

✅ Mutual aid and Ofgem coordination bolster grid resilience

National Grid ESO is predicting a reduction in electricity demand, consistent with residential use trends observed during the pandemic, in the case of the coronavirus spread prompting a lockdown across the country.

Its analysis shows the reduction in commercial and industrial use would outweigh an upsurge in domestic demand, mirroring Ontario demand data seen as people stayed home, according to similar analyses.

The prediction was included in an update from the Energy Networks Association (ENA), in which it sought to reassure the public that contingency plans are in place, reflecting utility disaster planning across electric and gas networks, to ensure services are unaffected by the coronavirus spread.

The body, which represents the UK's electricity and gas network companies, said "robust measures" had been put in place to protect control rooms and contact centres, similar to staff lockdown protocols considered by other system operators, to maintain resilience. To provide additional resilience, engineers have been trained across multiple disciplines and backup centres exist should operations need to be moved if, for example, deep cleaning is required, the ENA said.

Networks also have industry-wide mutual aid arrangements, similar to grid response measures outlined in the U.S., for people and the equipment needed to keep gas and electricity flowing.

ENA chief executive, David Smith, said, echoing system reliability assurances from other markets: "The UK's electricity and gas network is one of the most reliable in the world and network operators are working with the authorities to ensure that their contingency plans are reviewed and delivered in accordance with the latest expert advice. We are following this advice closely and reassuring customers that energy networks are continuing to operate as normal for the public."

Utility Week spoke to a senior figure at one of the networks who reiterated the robust measures in place to keep the lights on, even as grid alerts elsewhere highlight the importance of contingency planning. However, they pleaded for more clarity from Ofgem and government on how its workers will be treated if the coronavirus spread becomes a pandemic in the UK.

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BC Hydro COVID-19 Relief Fund enables small businesses to waive electricity bills for commercial properties during the pandemic, offering credits, rate support, and applications for eligible customers forced to temporarily close.

Key Points

A program that lets eligible small businesses waive up to three months of BC Hydro bills during COVID-19 closures.

✅ Eligible small general service BC Hydro accounts

✅ Up to 3 months of waived electricity charges

✅ Must be temporarily closed due to the pandemic

Businesses are taking advantage of a BC Hydro relief fund that allows electricity bills for commercial properties to be waived during the COVID-19 pandemic.

More than 3,000 applications have already been filed since the program launched on Wednesday, allowing commercial properties forced to shutter during the crisis to waive the expense for up to three months, while Ontario rate reductions are taking effect for businesses under separate measures. 

“To be eligible for the COVID-19 Relief Fund, business customers must be on BC Hydro’s small general service rate and have temporarily closed or ceased operation due to the COVID-19 pandemic,” BC Hydro said in a statement. “BC Hydro estimates that around 40,000 small businesses in the province will be eligible for the program.”

The program builds off a similar initiative BC Hydro launched last week for residential customers who have lost employment or income because of COVID-19, and parallels Ontario's subsidized hydro plan introduced to support ratepayers. So far, 57,000 B.C. residents have applied for the relief fund, which amounts to an estimated $16 million in credits, amid scrutiny over deferred BC Hydro operating costs reported by the auditor general.

Electricity use across B.C. has plummeted since the outbreak began. 

According to BC Hydro, daily consumption has fallen 13% in the first two weeks of April, aligning with electricity demand down 10% reports, compared to the three-year average for the same time period.

Electricity use has fallen 30% for recreation facilities, 29% in the restaurant sector and 27% in hotels, while industry groups such as Canadian Manufacturers & Exporters have supported steps to reduce prices. 

For more information about the COVID-19 Relief Fund and advice on avoiding BC Hydro scam attempts, go to bchydro.com/covid19relief.

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Iran Electricity Grid Synchronization enables regional interconnection, cross-border transmission, and Caspian-Europe energy corridors, linking Iraq, Azerbaijan, Russia, and Qatar to West Asia and European markets with reliable, flexible power exchange.

Key Points

Iran's initiative to link West Asian and European power grids for trade, transit, reliability, and regional influence.

✅ Synchronizes grids with Iraq, Azerbaijan, Russia, and potential Qatar link

✅ Enables east-to-Europe electricity transit via Caspian energy corridors

✅ Backed by gas-fueled and combined-cycle generation capacity

Following a plan for becoming West Asia’s electricity hub, Iran has been taking serious steps for joining its electricity network with neighbors in the past few years.

The Iranian Energy Ministry has been negotiating with the neighboring countries including Iraq for the connection of their power networks with Iran, discussing Iran-Iraq energy cooperation as well as ties with Russia, Afghanistan, Azerbaijan, and Qatar to make them enable to import or transmit their electricity to new destination markets through Iran.

The synchronization of power grids with the neighboring countries, not only enhances Iran’s electricity exchanges with them, but it will also increase the political stance of the country in the region.

So far, Iran’s electricity network has been synchronized with Iraq, where Iran is supplying 40% of Iraq's power today, and back in September, the Energy Minister Reza Ardakanian announced that the electricity networks of Russia and Azerbaijan are the next in line for becoming linked with the Iranian grid in the coming months.

“Within the next few months, the study project of synchronization of the electricity networks of Iran, Azerbaijan, and Russia will be completed and then the executive operations will begin,” the minister said.

Meanwhile, Ardakanian and Qatari Minister of State for Energy Affairs Saad Sherida Al-Kaabi held an online meeting in late September to discuss joining the two countries' electricity networks via sea.

During the online meeting, Al-Kaabi said: "Electricity transfer between the two countries is possible and this proposal should be worked on.”

Now, taking a new step toward becoming the region’s power hub, Iran has suggested becoming a bridge between East and Europe for transmitting electricity.

In a virtual conference dubbed 1st Caspian Europe Forum hosted by Berlin on Thursday, the Iranian energy minister has expressed the country’s readiness for joining its electricity network with Europe.

"We are ready to connect Iran's electricity network, as the largest power generation power in West Asia, with the European countries and to provide the ground for the exchange of electricity with Europe," Ardakanian said addressing the online event.

Iran's energy infrastructure in the oil, gas, and electricity sectors can be used as good platforms for the transfer of energy from east to Europe, he noted.

In the event, which was aimed to study issues related to the development of economic cooperation, especially energy, between the countries of the Caspian Sea region, the official added that Iran, with its huge energy resources and having skilled manpower and advanced facilities in the field of energy, can pave the ground for the prosperity of international transport and energy corridors.

"In order to help promote communication between our landlocked neighbors with international markets, as Uzbekistan aims to export power to Afghanistan across the region, we have created a huge transit infrastructure in our country and have demonstrated in practice our commitment to regional development and peace and stability," Ardakanian said.

He pointed out that having a major percentage of proven oil and gas resources in the world, regional states need to strengthen relations in a bid to regulate production and export policies of these huge resources and potentially play a role in determining the price and supply of these resources worldwide.

“EU countries can join our regional cooperation in the framework of bilateral or multilateral mechanisms such as ECO,” he said.

Given the growing regional and global energy needs and the insufficient investment in the field, with parts of Central Asia facing severe electricity shortages today, as well as Europe's increasing needs, this area can become a sustainable area of cooperation, he noted.

Ardakanian also said that by investing in energy production in Iran, Europe can meet part of its future energy needs on a sustainable basis.

In Iraq, plans for nuclear power plants are being pursued to tackle chronic electricity shortages, reflecting parallel efforts to diversify generation.

Iran currently has electricity exchange with Armenia, Azerbaijan, Iraq, where grid rehabilitation deals have been finalized, Turkmenistan, and Afghanistan.

The country’s total electricity exports vary depending on the hot and cold seasons of the year, since during the hot season which is the peak consumption period, the country’s electricity exports decreases, however electrical communication with neighboring countries continues.

Enjoying abundant gas resources, which is the main fuel for the majority of the country’s power plants, Iran has the capacity to produce about 85,500 megawatts [85.5 gigawatts (GW)] of electricity.

Currently, combined cycle power plants account for the biggest share in the country’s total power generation capacity as Iran is turning thermal plants to combined cycle to save energy, followed by gas power plants.

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