The Washington Utilities and Transportation Commission said Tuesday it will take no action on the request, which was made after regulators found last month that the $6.7-billion planned merger would not sufficiently safeguard Avista customers from the whims of Ontario's provincial government - Hydro One's largest shareholder.

If a rehearing is granted, Hydro One and Avista requested expedited proceedings that conclude by the end of January, two months before the March 29 closing deadline in the merger agreement and subsequent expiration of Hydro One's funding for the transaction.

Washington State regulators said they would not allow Ontario's largest utility to buy Avista for fear the provincial government, which owns 47 per cent of Hydro One's shares, might meddle in Avista's operations.