Regulatory hearings on Puget Energy acquisition scheduled to begin Aug. 25

By Jennifer Lanning Drey

Portland, Ore., July 30 - Three full days of regulatory hearings on the settlement agreement behind Puget Energy Inc.'s proposed buyout by a consortium of investors are scheduled to begin Aug. 25, the Washington Utilities and Transportation Commission reported in a Wednesday news release.

The path toward regulatory approval - or rejection - of the transaction began with a July 29 deadline for filing testimony in support of the settlement and is slated to end sometime in September when WUTC's three-member panel of commissioners issues a ruling.

The commissioners also have the option of making major modifications before approving the settlement; however, the signing parties would be allowed the option of withdrawing from the agreement if major modifications are made, according to the release.

The hearings are scheduled to run through Aug. 27, but a final decision will not be issued from the bench, a WUTC spokesperson told Prospect News.

Testimony has been filed by about a dozen entities, including the Washington attorney general's office, which has not agreed to the proposed settlement and said it will contest it at the hearings.

The commission is also reviewing public comments on the transaction until Aug. 27.

As previously reported, the WUTC is weighing whether to approve a $7.4 billion bid for the utility by a consortium of investors led by Australia's Macquarie Infrastructure Partners.

After facing initial resistance from the public counsel section of the Washington attorney general's office, Puget Sound Energy, the utility subsidiary of Puget Energy, a consortium of long-term infrastructure investors, the staff of the Utilities and Transportation Commission, the Industrial Customers of Northwest Utilities, Northwest Industrial Gas Users, the Energy Project, the Northwest Energy Coalition, and Kroger Co. filed a settlement stipulation with the commission outlining the terms of their settlement agreement in the merger.

The settlement attempted to address the counsel's concern over the level of debt to be incurred in the acquisition, the bond ratings of Puget Sound Energy, dividend restrictions, the ability of Puget Sound Energy to finance its capital expenditures, programs for low income customers, and renewable energy and energy efficiency.

The attorney general's office remains in opposition of the deal.

Puget Energy is the Bellevue, Wash., parent company of Puget Sound Energy.

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