FAQS
Frequently Asked Questions
What is the status of Chugach buying Municipal Light & Power?
The Regulatory Commission of Alaska is currently reviewing the acquisition of ML&P by Chugach. The RCA’s role is to determine if the sale is in “the public interest.”
When will the RCA make a decision?
The RCA has indicated it will issue a decision on the acquisition by mid-February 2020.
It was reported before the April vote that this is a one-billion-dollar deal. Is that the final sales price?
The ballot language said Chugach would pay a competitive value of approximately $1 billion for the acquisition of ML&P, subject to adjustment during the due diligence process. The final negotiated sales price is $1,009,600,000.
Is the final purchase agreement available to the public?
The final sales agreement and associated documents are posted on the What’s New section of this website.
The final sales agreement and associated documents are posted on the What’s New section of this website.
When will everything be final?
If the RCA approves the acquisition, Chugach has up to 120 days to close the deal.
If the RCA approves the acquisition, Chugach has up to 120 days to close the deal.
When will ML&P customers become Chugach customers?
ML&P customers will become Chugach members/customers after the deal closes, which is currently estimated to occur sometime in 2nd or 3rd quarter of 2020.
ML&P customers will become Chugach members/customers after the deal closes, which is currently estimated to occur sometime in 2nd or 3rd quarter of 2020.
When will ML&P employees become Chugach employees?
ML&P employees will become Chugach employees after the deal closes, which is currently estimated to occur in the 2nd or 3rd quarter of 2020.
ML&P employees will become Chugach employees after the deal closes, which is currently estimated to occur in the 2nd or 3rd quarter of 2020.
What is going to happen to all buildings currently being utilized by ML&P?
As part of the sales agreement, Chugach is buying most of the properties currently owned by MOA and managed by ML&P.
As part of the sales agreement, Chugach is buying most of the properties currently owned by MOA and managed by ML&P.
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.
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.
Are rates going up to pay for the transaction?
Chugach has affirmed, and it was part of the ballot language, that base rates will not increase as a result of the transaction. In the long-term, elimination of duplication and taking advantage of economies of scale will allow Chugach to honor that commitment. Rates can go up for other reasons such as load decline, labor, fuel prices, natural disaster recovery, etc., but they won’t go up to pay for the transaction.
Chugach has affirmed, and it was part of the ballot language, that base rates will not increase as a result of the transaction. In the long-term, elimination of duplication and taking advantage of economies of scale will allow Chugach to honor that commitment. Rates can go up for other reasons such as load decline, labor, fuel prices, natural disaster recovery, etc., but they won’t go up to pay for the transaction.
Is Chugach sticking to its commitment of no layoffs as a result of the sale?
Yes. There will be no layoffs of Chugach or ML&P employees as a result of the transaction. Once the deal closes, the number of positions will be adjusted over time through attrition.
Yes. There will be no layoffs of Chugach or ML&P employees as a result of the transaction. Once the deal closes, the number of positions will be adjusted over time through attrition.