Washington-based Avista Corp to buy Alaska utility

JUNEAU, Alaska — Spokane-based energy company Avista Corp. announced plans on Monday to buy Alaska Energy and Resources Co., the privately held parent of Juneau’s electric utility.

The companies expect the deal, which is subject to regulatory approval, to close by July. They said the purchase price at closing will be $170 million, minus debt and other adjustments.

Avista said in a release that it expects the addition of Alaska Energy and Resources Co. to be “slightly negative” to earnings in 2014, and to be a positive contributor to earnings in 2015.

The main holding of Alaska Energy and Resources is Alaska Energy Light and Power Co., or AEL&P, which said all its employees will keep their jobs. The current management team also is expected to remain in place.

Alaska Energy and Resources’ interests also include an inactive subsidiary that owns some land and mining claims, said Scott Willis, vice president of generation with AEL&P.

“It’s important for customers to know that we will still exist as a utility. We will keep our name, AEL&P. We will keep our office here in Juneau,” Willis said in an interview.

Willis said Alaska Energy and Resources had been looking for a buyer for about two years. He said stock in the company is primarily owned by one family but he said there was no longer a family member interested in being involved in managing the company, leading to the decision by the family and board to seek a new owner.

Scott Morris, Avista Corp.’s chairman, president and CEO, in a release called AEL&P “a great long-term fit” with his company, with similar values and a focus on providing safe, reliable service.

AEL&P had annual revenues of $42 million in 2012 and a total rate base of $111 million, according to Avista Corp.

Avista Corp.’s operating division is Avista Utilities. Its service area includes parts of Washington, Idaho and Oregon.

More in Herald Business Journal

Peoples, HomeStreet banks bump lowest salaries after tax cut

The banks with Snohomish County branches will raise minimum salaries for employees to $15 an hour.

Electroimpact cuts Mukilteo staff by 9 percent

“What we’re missing now is a monster anchor project,” the company’s VP said.

Exotic animals find compassionate care in Bothell (video)

At the Center for Bird and Exotic Animal Medicine, vets treat snakes, hedgehogs and even kangaroos.

How can you tell if you are getting good financial advice?

Assume that it’s still the same buyer-beware market that has always existed.

Amanda Strong (left) tries on an Angel of the Winds Arena hat as she and Courtney Brown hand out gift bags after the renaming ceremony Dec. 13 in Everett. The new name replaces the Xfinity name. (Andy Bronson / Her file)
Angel of the Winds to break ground on $60M casino expansion

“We think we’re on the cusp of becoming a major resort.”

In this Dec. 20, 2017, photo, a clerk reaches to a shelf to pick an item for a customer order at the Amazon Prime warehouse, in New York. (AP Photo/Mark Lennihan, File)
Amazon’s potential HQ2 sites leaves many cities disappointed

And yet, some municipal leaders are looking at the bright side of being rejected.

How do you retrieve an errant Boeing 737 from a muddy slope?

Turkish authorities used cranes to lift a plane that skidded off a runway.

Don’t take economic forecasts to the bank — or the casino

Air travel delays could spur a rebirth of passenger rail service.

Emirates orders 20 more Airbus A380 jumbos, saving program

The Dubai carrier also has options to buy 16 more. The program seems safe until 2029.

Most Read