Fairbanks utility interested in purchase of ML&P



The Fairbanks Daily News-Miner is reporting this morning that the Golden Valley Electric Association is more than a little interested in the proposed $1 billion sale of Anchorage’s Municipal Light & Power utility to the Chugach Electric co-op.

The newspaper says GVEA sent ML&P a nonbonding letter of interest that “provides a purchase price range of $875 million to $1 billion and promises not to raise rates or lay off employees for 24 months.”

“It’s not an offer,” the newspaper reported GVEA CEO Corey Borgeson as saying. “This is a little bit of a defensive move. There is concern that if we lose one of our major suppliers that we may see higher costs of energy from the Anchorage area.”

The letter gives GVEA an opportunity “to work on issues and conditions of the sale,” Borgeson said.

Other entities also have submitted letters of interest, but Anchorage officials are blocked from discussing the proposed deal because of a nondisclosure agreement.

“I am very limited with what I can say,” Kristin DeSmith, communications director for Anchorage Mayor Ethan Berkowitz, told the News-Miner.

Borgeson told the newspaper GVEA is interested in “buying components of ML&P, namely gas wells in Cook Inlet, a new power plant near Eagle River and the Bradley Lake Hydroelectric Project of which GVEA owns a 17 percent share.”

[Read more at the Anchorage Daily Planet]


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