FAIRBANKS – Golden Valley Electric Association (GVEA) is among several entities to submit a Letter of Interest in connection with the prospective Anchorage Municipal Light & Power (ML&P) sale.
GVEA’s letter was not a formal offer to purchase the utility.
In the letter, Golden Valley expressed an interest in evaluating a potential purchase. The Fairbanks-based co-op sought to better understand the possibilities and implications that the ML&P sale presents to both GVEA and the Railbelt electrical system.
ML&P is GVEA’s largest supplier of economical gas-fired energy. In 2017, Golden Valley purchased approximately $21 million worth of electricity from ML&P. This economy power saves Interior ratepayers millions of dollars annually on their electric bills.
GVEA and ML&P both own a share of the Bradley Lake Hydroelectric Project (GVEA owns 17%; ML&P owns 25%). GVEA is interested in preserving the structure and reallocation of ML&P’s share of Bradley Lake Hydro power, which has a positive effect on the co-op’s ability to site additional renewable energy sources on our system.
“GVEA has a significant interest in understanding and monitoring the potential sale of the ML&P utility, and GVEA’s letter of interest provided access to necessary information,” said Cory Borgeson, President & CEO.
In addition to the letter of interest from GVEA, ML&P received similar letters from other utilities. At this juncture, ML&P has elected to proceed forward with sale negotiations with Chugach Electric (CEA).
“While CEA is an excellent utility, it’s important that GVEA participate in ongoing discussions to ensure that the best interest of GVEA members and the benefits of the Railbelt system as a whole are considered during negotiations,” Borgeson said.