A consolidation between Chugach Electric and ML&P has been discussed for decades. Chugach and ML&P have adjacent service territories, making consolidation easier and more cost effective. With low interest rates, the time to make this transaction is now. The hundreds of millions of dollars that would be saved from combining the two utilities and reducing duplication make it a win-win for the Anchorage community.
The two utilities are already co-owners of the Southcentral Power Project and have ownership interests in the Beluga River gas field and the Eklutna Hydro Power Plant. Chugach and ML&P are also working together in power-pooling. Consolidation is the logical next step.
What will happen to my rates when there’s one electric utility in the Anchorage Bowl?
Chugach has pledged that electric rates will not go up to pay for the transaction. Combining power utilities will streamline services and resources, saving hundreds of millions of dollars over time. The savings will lead to lower long-term electric rates.
Will a sale create a monopoly?
Both Chugach and ML&P are already regulated monopolies. Anchorage residents do not choose their utility, but rather purchase their electricity based on where they live. Both utilities are regulated by the Regulatory Commission of Alaska, and that will not change if the two utilities combine. The RCA will still oversee utility activity.
Additionally, as a member-owned cooperative, Chugach members have a voice in how the utility is managed. The co-op has a seven-member board that any member can serve on through the annual election process.
Will there be layoffs?
No. Chugach Electric has pledged there will be no employee layoffs at either utility due to the consolidation. However, the number of positions will be adjusted over time through attrition.
There are no property tax increases or rate increases associated with the sale, and there will be no layoffs of Chugach or ML&P employees. Chugach has pledged to right-size through attrition. Combining the expertise and experience of both work forces will ultimately make the single utility stronger and operations more efficient and cost-effective.