The Regulatory Commission of Alaska (RCA) has approved the acquisition of Municipal Light & Power by Chugach Electric Association with conditions. Chugach and the Municipality of Anchorage anticipate the transaction to close on October 30, 2020. After closing, ML&P customers will begin receiving electric service from Chugach.
Below are excerpts from RCA Order 39 regarding the merits of the acquisition.
"For decades residents of Anchorage have discussed combining ML&P and Chugach. Combining them could mean better economies of scale in employment, more efficient deployment of existing generation and transmission assets, more efficient inventory management, and better planning to efficiently meet the future electric utility requirements of Anchorage. Further, a combined utility would foster a better business environment because electric rates would be the same regardless of where in Anchorage an enterprise was located." - page 5, lines 3-9
“We find that Chugach is technically fit to provide public electric service in the North District based on its existing capabilities, and its acquisition of the infrastructure and staffing currently providing public electric utility service to ratepayers in that service area.” - page 50, lines 9-12
“As found above, Chugach is fit, willing, and able to provide public electric utility service in the North District, and transfer of service responsibility to Chugach is in the public interest if the conditions imposed in this order are accepted by the parties and the transaction closes.” - page 58, lines 4-7
“Meanwhile, we have particular confidence that material savings from security-constrained economic dispatch across the North District and South District are real and durable.” - page 116, lines 9-11
“However, based on the record presented, and given what we believe to be reasonable and credible ranges of future outcomes, we find that ratepayers in both the North District and the South District of the combined service territory are much more likely to be substantially better off with the acquisition than without.” - page 125, lines 18-22