Washington Business Winter 2018 | Washington Business | Page 21

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is that as we’ve seen all the smoke from wildfires, those
engineers are seeing in real time what the air quality is
in those areas and tracking the data. The next step from
that, since we have two medical schools, is we would then
have this research and could see the types of medical issues
that might be coming into the new clinic in the University
District, such as more occurrences of asthma or other types
of health issues due to certain air quality levels and prepare
for the kinds of patients that may come into the clinic and
hospitals. This experiment is not happening yet, but that’s
information that, over time, you could use. It’s not the
utility’s job to do that research, but our role in this project is
creating the networks, collaboration and opportunities for
these partners to come together to create a living laboratory
to get solid information to improve communities.
As data from the pilot project is gathered, how will
it be shared and who will have access to it?
The big part of this is governance and we’re learning about
that right now. We’re asking, as we think of various different
organizations that may want the data, how do we set this up
in a way that protects privacy and respects confidentiality?
That’s critical, because, on the other hand, you gathered
this data to put to use to make your community better. A big
piece of that is working through the governance principles,
how to set up these networks so that, from a cyber
perspective, they’re safe. This is all part of the experiment
itself. It’s truly a living laboratory.
Avista made big news with the announcement of its
acquisition by Hydro One last year. Why was this
move important for the company?
We at Avista, and I, have a deep appreciation for the fact
that Avista — then Washington Water Power Company —
was started when Washington state was still a territory. It’s
one of the very few corporations that is still in existence
where this is the case. It has been an important part of the
Inland Northwest for 128 years. Our goal was we wanted
to make sure that we would continue to play that role for
another 128 years. What’s happening in the industry is there
has been a considerable amount of consolidation. When
I became the president in 2000, there were 68 investor-
owned, publicly-traded utilities in the United States. Today,
there are 42. If you count Canada, there are a total of 50
investor-owned utilities, in all of North America. Avista is
one of the smallest investor-owned utilities in North America — 46 out of
50 in size. We have a large service territory — 35,000 miles — but we don’t
have as many customers because we don’t have the population base. So, we
started to think about how we could do something proactive instead of just
watching this industry consolidation. And, if so, what was most important to
us? So, we went back to our guiding principles, or our “four legs of the stool,”
with regard to commitments we absolutely must keep to: our customers, our
employees, our communities as well as our shareholders. In any decision,
we wanted to make sure we kept the values and culture of our company
and retain what Avista does for our communities and our customers as
well as create value for our shareholders. We could have waited and hoped
that a deal came about that ensured we could keep our commitments to
our communities and stakeholders. But, we came to the conclusion that if
we could find the right partner with the right values and the right culture,
and they respected our values and the need for us to bring to the table our
guiding principles and have a say in the partnership, it might be worth a
conversation. Hydro One was that company.
scott morris at a glance
Scott Morris, is a 36-year employee of Avista. He was named president
of Avista Utilities in 2000 and was elected as the Avista Corp. board
chairman, president and CEO on Jan. 1, 2006. Morris, 59, received
both his undergraduate degree and master’s degree from Gonzaga
University in Spokane. He also attended the Stanford Business School
of Financial Management Program and the Kidder Peabody School of
Financial Management.
Spokane-based Avista Corp., formerly Washington Water Power
Company, was started in 1889, when Washington state was still a
territory. In July, Avista Corp. announced a proposed acquisition by
Canada’s Hydro One. If approved by regulators, it would make the
company a top 20 North American utility focused on the production,
transmission and distribution of electricity and natural gas. Pending
regulatory approval, Avista anticipates the acquisition will be complete
in the second half of 2018.
Urbanova is a strategic partnership between Avista Corp., the City
of Spokane, Itron, McKinstry, the University District Development
Association and Washington State University. Together, they are
piloting smart cities technology and innovations that aim to make
healthier, more energy efficient and smarter-planned communities
in the future.
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