On Oct. 30 Chugach Electric Association closed its acquisition of Anchorage based Municipal Light & Power, resulting on one rather than two electric utilities serving residents and businesses in Anchorage. 
Chugach Electric said that the combined operations for the consolidated utility would begin on Nov. 4, at which point erstwhile ML&P customers would be invited to become Chugach Electric members.
The concept behind the takeover, a deal valued at $986 million, is the minimization of the cost of electricity through economies of scale, the elimination of duplicated business functions and the optimum use of the most efficient power generation capacity. 
Although simple in principle, the specifics of achieving the deal proved extremely complicated, requiring years of negotiation and a very lengthy Regulatory Commission of Alaska review.
In December 2017 then Anchorage Mayor Ethan Berkowitz proposed the sale of municipality-owned electric utility ML&P to Chugach Electric. In April 2018 Anchorage voters gave the municipality the authority to proceed with the sale. Subsequently the two utilities worked out the details of the deal, filed the proposed deal with the RCA and participated with other stakeholders in the RCA hearing.
On May 28 of this year the RCA issued its approval of the purchase, subject to some specific changes to the deal. Subsequently the utilities have been able to complete the utility consolidation.
As a consequence of the deal several hundred million dollars will be deposited into the municipality's trust account as a means of generating future revenue. And $15 million from the deal will be dedicated to addiction treatment services in the municipality -  the municipality anticipates purchasing the Best Western hotel at the corner of 36th Avenue and the New Seward Highway in Anchorage to convert the building into a treatment facility.

See full story by Alan Bailey in Nov. 8 issue of Petroleum News, available Friday, Nov. 6 at www.PetroleumNews.com


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