What is the status of Chugach buying Municipal Light & Power? Voters authorized the Municipality of Anchorage to sell ML&P to Chugach in the April 3, 2018 election with a vote of 65 percent in favor of the sale. Chugach and the Municipality of Anchorage are currently negotiating the terms of a purchase agreement.
When will the deal be final? The ballot language approved by voters requires a final purchase agreement to be approved by the Anchorage Assembly no later than December 31, 2018. Otherwise, the sale will not move forward.
Could it be done sooner? Yes. It is possible the final purchase agreement could be reached and approved before December 31, 2018, but that is the date in the ballot language approved by voters.
It was reported before the April vote that this is a one billion dollar deal. Is that the final sales price? The final sales price is being determined as the final purchase agreement is negotiated. The ballot language says Chugach would pay a competitive value of approximately $1 billion for the acquisition of ML&P, subject to adjustment during the due diligence process.
Is the final purchase agreement available to the public? When the final purchase agreement goes to the Anchorage Assembly, it will be a public document.
When will everything be final? The current estimate is the transaction could close in latter part of 2019, or possibly in early 2020.
When will ML&P customers become Chugach customers? ML&P customers will become Chugach members/customers after the deal closes.
When will ML&P employees become Chugach employees? ML&P employees will become Chugach employees after the deal closes.
What is going to happen to all buildings currently being utilized by ML&P? A final determination regarding use of the ML&P buildings will be included as part of the terms and conditions of the final purchase agreement and is subject to Chugach’s full evaluation of the use of those assets.
Will Chugach do the same level of community activity sponsorship as ML&P? As a member-owned cooperative, Chugach values supporting community activities and continues to strengthen its community connections. Chugach will continue being active and supportive in the community. The acquisition of ML&P will not change Chugach’s commitments.
Is Chugach sticking to its commitment of no lay-offs as a result of the sale? Yes. There will be no layoffs of Chugach or ML&P employees. Once the deal closes, the number of positions will be adjusted over time through attrition.
What are the advantages of being part of an electric cooperative? An electric cooperative like Chugach Electric is a not-for-profit business owned and controlled by the people who use its services. An electric cooperative has a member-elected board of directors and is operated by and for the electric customers for which it serves. The goal is to provide reliable and affordable power. Electric co-ops also pay dividends to their members in the form of capital credit payments.