Selling ML&P to Chugach Electric is a bad idea.
Anchorage’s Municipal Light and Power is a city-owned electric utility with substantial generating capability and a solid track record for customer satisfaction at a reasonable price. Chugach Electric Association is a member-owned cooperative effectively controlled by the IBEW, the International Brotherhood of Electrical Workers, a union. It also does a good job by its customers.
ML&P primarily serves Downtown Anchorage south to Tudor Road and east to Boniface Parkway. Chugach Electric serves the bulk of the Municipality, including most residential areas. ML&P and Chugach share a one-third interest in the Beluga River gas field. Chugach is owned by its ratepayers; ML&P is owned by all residents of Anchorage.
The city of Anchorage would be effectively selling its electric utility and all its interests to a union. The price being offered, more than a billion dollars, is at the upper limit of what ML&P is believed to be worth. So who will pay off that billion-plus purchase price? Why, you and me, folks. Who else? We will be paying our electric bills to Chugach Electric and Chugach will pay off the debt. And since Chugach would be paying such a steep price, it seems highly likely that the debt will be paid off by raising rates, the rates you and I will be paying.