2. DESCRIPTION OF BUSINESS
Chugach is the
largest electric utility in Alaska.
Chugach is engaged in the generation, transmission and distribution of
electricity to directly serve retail customers in the Anchorage and upper Kenai
Peninsula areas. Through an
interconnected regional electrical system, Chugach’s power flows throughout
Alaska’s Railbelt, a 400-mile-long area stretching from the coastline of the
southern Kenai Peninsula to the interior of the state, including Alaska’s
largest cities, Anchorage and Fairbanks.
much of the power requirements for three wholesale customers, Matanuska
Electric Association, Inc. (MEA), Homer Electric Association, Inc. (HEA), and
the City of Seward (Seward). Chugach’s
retail and wholesale members are the consumers of the electricity sold.
Chugach was organized
as an Alaska electric cooperative in 1948 and operates on a not-for-profit
basis and accordingly, seeks only to generate revenues sufficient to pay
operating and maintenance costs, the cost of purchased power, capital
expenditures, depreciation, and principal and interest on all indebtedness and
to provide for reserves. Chugach is
subject to the regulatory authority of the Regulatory Commission of Alaska