Anchorage residents started the year with a drop in their electric bills, thanks to the recent sale of Municipal Light & Power to Chugach Electric. The reduced rates went into effect Jan. 1, 2021 and show up on this month’s bills.
“These savings validate the decision voters made when they approved the sale of ML&P to Chugach,” said Bill Popp, AEDC President & CEO. “We knew that more efficient, less expensive electricity was possible for all of Anchorage and we’re proud of our advocacy and the accomplishments of Chugach and the Municipality.”
Chugach’s North District members will see a rate reduction of 9.6 percent. South District members’ rates will drop 2.7 percent.
“We are pleased to see the positive results of the consolidation of the utilities start to materialize for our members,” said Chugach CEO Lee Thibert. “Lower long-term electric rates will provide benefits to residents and businesses of Anchorage for years to come.”
“These rate reductions are coming at a critical time for Anchorage residents and businesses,” said Acting Mayor Austin Quinn-Davidson. “I’m grateful to the municipal employees who put in years of tireless and dedicated work to complete the largest business deal in Anchorage history, which will benefit ratepayers for years to come.”
In 2017 an AEDC working group outlined an opportunity to reduce rates by restructuring local utility providers and sent a letter recommending a merger of Chugach and ML&P to the mayor and Anchorage Assembly.
The Assembly subsequently passed a resolution urging the Municipality of Anchorage, ML&P and Chugach to explore merger opportunities. The groups determined a merger was not possible, but an outright sale was. After being approved by the Assembly, the proposed sale went on the ballot in 2018 and was approved by voters. The sale was finalized in 2020.
About AEDC
AEDC is a private nonprofit corporation, operating since 1987. It exists to encourage growth and diversity in the Anchorage economy, promote a favorable business climate and improve the standard of living of Anchorage residents.
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Media contacts:
Spencer Shroyer, AEDC
sshroyer@aedcweb.com (907) 334-1205
Emily McLaughlin, Thompson & Co. PR
Emily.m@thompsonpr.com (907) 561-4488
Carolyn Hall, Municipality of Anchorage
carolyn.hall@anchorageak.gov (907)310-0753
Julie Hasquet, Chugach Electric Association
Julie_Hasquet@chugachelectric.com (907) 762-4489