Idaho’s Public Utilities Commission announced Monday that it is accepting written comments and will hold a public workshop May 16 regarding a request by Spokane, WA-based Avista Utilities to form a new holding company to be called AVA Formation Corp. Written comments to the PUC will be accepted through June 16.

Last year’s repeal of the Public Utilities Holding Company Act (PUHCA) as part of the Energy Policy Act of 2005 (EPAct) prompted the move by Avista Utilities. The company said that a holding company structure will provide additional protection for ratepayers by further separating the regulated utility operations from the company’s other business units.

“The further protections, referred to as ‘ring-fencing,’ are designed to further guarantee that ratepayers’ dollars are not used to subsidize unregulated subsidiaries of Avista and the ratepayers are protected from the risks of operating other nonregulated businesses,” said a PUC spokesperson.

Avista has emphasized in its filing that the proposed reorganization, announced by its board of directors in February, will not include the transfer of utility assets, and utility customers will not see any change in operations for retail natural gas and electric services. Avista Utilities will continue to be subject to the PUC’s jurisdiction in Idaho.

Avista CEO Gary Ely said last February the holding company is intended to be a means of better serving both shareholders and customers. He called it a “well-established form of organization for companies engaged in multiple lines of business, and it is common in the utility industry.” Avista shareholders will vote the on the proposed change at the company’s annual meeting May 11.

In addition to Idaho regulators, Avista is seeking approval for the new holding company from similar state commissions in Washington and Oregon, and from the Federal Energy Regulatory Commission.

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