Chugach Seeks Approval of ML&P Acquisition from RCA

One year after Anchorage voters authorized the Municipality of Anchorage (MOA) to sell Municipal Light & Power (ML&P) to Chugach Electric Association, Chugach has filed an Asset Purchase and Sale Agreement with the Regulatory Commission of Alaska (RCA) for its review and approval of the acquisition. In its filing April 1, Chugach filed an application to expand its service territory under its Certificate of Public Convenience and Necessity (CPCN) to include the service territory currently served by ML&P.

“After thousands of hours of thought, analysis, and negotiations, we are very pleased to reach this milestone,” said Chugach CEO Lee Thibert. “We know we will save electric ratepayers money over the long-term with this acquisition. We look forward to outlining our case to the RCA and moving forward with this effort that will have a positive impact in Anchorage for decades to come.”

“The amount of work and effort from Chugach, ML&P, and the city getting to this point has been outstanding,” said Chugach Board Chair Bettina Chastain. “The timing was right and everybody came together, putting their best foot forward to do something that will be good for the community as a whole.

In April 2018, Proposition 10, approved by more than 65 percent of Anchorage voters, gave the MOA the authority to sell ML&P for a competitive value of approximately $1billion. It also included language that the transaction would not result in lay-offs at Chugach or ML&P or increases to base electric rates for Chugach and ML&P customers. Following the vote, Chugach, ML&P and the MOA negotiated a final Asset Purchase and Sale Agreement that was approved by the Anchorage Assembly, the Chugach Board of Directors, and signed by the parties in December 2018.