Jan 23 (Reuters) - Canadian electricity producer Hydro One Ltd H.TO and U.S.-based peer Avista Corp AVA.N have agreed to terminate their merger after failing to receive approval from regulators in Washington and Idaho states.
Hydro One had proposed to buy Avista for C$6.7 billion ($5.02 billion) in 2017 as it sought to expand into the U.S. Northwest.
The Canadian company will pay Avista $103 million in merger termination fees, it said in a statement.