Anchorage voters said yes to Proposition 10, the ballot initiative authorizing the sale of Municipal Light & Power (ML&P) to Chugach Electric. As of April 4, the proposition was passing with 66.6 percent of voters saying yes to 33.3 percent saying no. The vote gives the Municipality of Anchorage authorization to move to a final sales agreement with Chugach for the sale of the municipally-owned electric utility.
Consolidating Chugach and ML&P has been discussed in Anchorage for more than three decades, with the opportunity to save money for all ratepayers by eliminating duplication and taking advantage of economies of scale. Most recently, in 2017, both the Anchorage Economic Development Corporation and the Anchorage Assembly urged the two utilities to pursue a merger or other form of consolidation.
After considering offers from several entities, it was announced in December that voters would be asked to authorize the sale of ML&P to Chugach.
Chugach and the Municipality of Anchorage will now move through a due diligence process and come up with a final sales agreement. That final agreement must be approved by the Chugach Board of Directors, the Anchorage Assembly, and the Regulatory Commission of Alaska.
“Thank you to Anchorage voters for recognizing the value of this opportunity and giving us the chance to move ahead with the electric utility consolidation,” said Chugach CEO Lee Thibert. “We look forward to the public’s input as we work toward closing this sale by the end of the year.”