Filing details Chugach deal for CIE gas

Chugach Electric Association recently filed documents with utility regulators detailing a deal to purchase natural gas from small producer Cook Inlet Energy LLC.

The Regulatory Commission of Alaska in late 2013 approved a gas sale and purchase agreement between Chugach and Cook Inlet Energy.

On March 20, Chugach filed an executed “transaction confirmation” with the commission.

The confirmation provides for interruptible gas purchases of up to 10,000 mcf per day for a period beginning April 1 and extending through 2018. Contractual prices start at $6.12 per mcf the first year, climbing to $6.62 in 2018.

Chugach is the largest electric utility in Alaska’s largest city, Anchorage.

Cook Inlet Energy is the Anchorage-based subsidiary of Tennessee-based, publicly traded Miller Energy Resources Inc.

Cook Inlet Energy produces oil and gas from two fields on the west side of the inlet, and recently acquired the North Fork gas field on the southern Kenai Peninsula.

—Wesley Loy