Chugach-ML&P Merger

Chugach Board Chair Elizabeth Vazquez and Mayor Mark Begich signed an agreement June 15 aimed at leading to a decision by this fall on whether it makes legal and financial sense for the two utilities to merge or somehow combine operations. The two agreed to appoint a panel of experts to help analyze the possibility of a single utility pursuant to the detailed five principles the two utilities will follow as discussions continue.

Chugach Board Chair Elizabeth Vazquez and Mayor Mark Begich will co-chair the committee.

Other members of the committee include:

Robert Ballow, a certified public accountant and real estate investor, former president of the Kuskokwim Corp., and former president and CEO of The Office Place.

Mike Barry, former chair of the Alaska Industrial Development and Export Authority and the Alaska Energy Authority boards and a long-time Anchorage businessman.

Assemblyman Chris Birch, a former Chugach board member before he was elected to the Assembly in 2005.

Don May, a utility regulation consultant and prior member of the Alaska Public Utilities Commission from 1990-92, former chief financial officer for the Arctic Slope Telephone Association Cooperative and manager of regulatory affairs for ATU Telecommunications.

Stephen Pratt, an economist who runs his own consulting firm and a former senior manager with Alaska Communications Systems, is a member of the ML&P Advisory Commission.

The two also signed an agreement identifying five principles under which the team will work, including:

Ensure the greatest benefit for the existing ratepayers of the two utilities
Eliminate duplication of services
Increase efficiency of services
Create rate stability for current and future ratepayers
Maximize asset value for owners of both companies.

Officials from both sides agreed not to pre-judge the outcome, and they could even decide not to pursue a merger or joint operations if the analyses determines it makes little sense.