Avista recently announced it has signed an agreement to acquire Alaska Energy and Resources Company (AERC), which includes its primary subsidiary Alaska Electric Light and Power Company (AEL&P), which is the sole electric services provider for Juneau, the state capital of Alaska.
When the transaction is complete AERC will become a wholly-owned subsidiary of Avista Corp. The transaction, pending regulatory approvals is not expected to be completed until mid-year 2014. The $170 million purchase price will be funded through the issuance of Avista common stock to the shareholders of AERC. Read the news release.
“AEL&P’s 120-year culture of service and community partnership is a great long-term fit with Avista Corp. We have found AEL&P to have similar cultural values and focus on providing safe, reliable service from clean, renewable energy sources that Avista has held dear for nearly 125 years. We look forward to working with their highly skilled and dedicated management and employees, and to being part of the Juneau community,” said Avista Corp. Chairman, President and Chief Executive Officer Scott Morris. “This agreement reflects Avista’s strategy to expand and diversify energy assets and deliver long-term value to the customers, communities and investors we serve.”
Since there is no plan to merge Avista Utilities and AEL&P’s utility operations, customers in Washington, Oregon and Idaho won’t see any big changes.
This isn’t the first time Avista has acquired a utility or utility properties. In the early ‘90s Avista (WWP) acquired CP National’s Oregon and California properties. This provided the basis for our Oregon operations today. And in 1994, Avista acquired PacifiCorp’s Northern Idaho electric properties, which included Sandpoint, Idaho.