Breaking down proposition 10 on the Anchorage ballot
Proposition 10 on the Anchorage ballot, if approved, would authorize the sale of Municipal Light and Power to Chugach Electric for approximately $1 billion. The goal of the merger, according to the city, is to create efficiencies that would lead to lower electric bills for people living in Anchorage.
Chugach Electric spokesperson Julie Hasquet joined Daybreak on Monday to explain more on the proposition.
"Interest rates are at a good place right now," said Hasquet, as to why the merger is being pushed on this ballet. "We have been talking about this for 30 years or more, but interest rates have an upward bias right now. We would like to get this done before they go up, if they're going to."
The proposal claims electric bills would go down as a result of the merger.
"It won't be overnight," she said. "It will take some time, we know that the long term rates for people are going to be lower than they will if you continue with the two utilities."
The sale of ML&P was quoted at $1 billion and Hasquet helped give us an idea of where that amount was coming from.
"The $1 billion captures the debt and equity of ML&P," Hasquet said. "It also has payment in lieu of taxes of $142 million, which is currently being made by ml&p to the city, so we want to keep that whole."
The merger would not be an immediate change. Hasquet explained, people in Anchorage should see their bill begin to diminish over years rather than months.
"If this is approved by voters and we go to a final sales agreement that gets approved by the assembly and regulatory commission of Alaska and the Chugach board, it's not like one night we're going to be two utilities and the next day we're all together. This will be several years that we will have to merge," she said.
Anchorage voters have until April 3 to fill out their vote by mail ballot for the municipal election.
There are three ways to submit that ballot: The U.S. Postal Service, secure ballot drop boxes, and accessible vote centers.
Chugach Electric is having a public meeting at 6 p.m. on Monday, March 26 at the Anchorage Moose Lodge on Arctic Boulevard.
There are more details on proposition 10, available at poweranchorage.com.
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