Comment Period Open for TA491-8 Revised Power Pooling Agreement Between Chugach Electric Association, Inc. (Chugach) and Matanuska Electric Association, Inc. (MEA). 

The Regulatory Commission of Alaska has issued a public notice soliciting comments on TA491-8, Amended and Reinstated Operations Agreement for Power Pooling and Joint Dispatch between Chugach and MEA.  Comments must be filed by 5:00 p.m., September 8, 2020 (click through this link for more details and filing instructions). 

The key provisions of the proposed amended agreement pooling agreement include:

•    Dispatch of generation and transmission assets to meet both parties’ native loads and reliability obligations at minimum cost.
•    Savings from more efficient dispatching (estimated to be $4 to $6 million annually) to be shared equally between Chugach and MEA.
•    No wheeling charges for energy transfers through the amended power pool to either party.
•    The formation of a single load balancing area.
•    Provisions for the sale of economy energy to other parties without interfering with the operation of the amended power pool or disadvantaging either Chugach or MEA.
•    A  joint  organizational  structure  including  an  Executive  Committee,  an Operating  Committee, and a Central Scheduling Service.
•    Provisions that allow either Chugach or MEA to enter into wholesale contracts to allow  either  utility  to  purchase  power  from  entities  that  are  not  parties  to the  agreement.
•    A term of 20 years, beginning on the date of Commission approval with an initial eighteen-month  implementation  period  during  which  Chugach  and MEA  will  complete  all  asset  transfers,  test  power  pooling  operation,  and negotiate other relevant procedures. Before the end of the 15th year, Chugach and MEA will meet to  agree  on  termination  at  the  end  of  the  term  or extension  of  the  term  of  the  agreement.
•    Provisions  allowing  the  parties  to  evaluate  the  efficiencies  and  cost savings  achieved  on  a  continual  basis  to  address  situations  where  a  party may  suffer  Material Financial Regret. Parties remedy such conditions through renegotiation, arbitration, and ultimately, Commission review and approval.
•    Provisions for annual audits of all transactions, outage records, operator logs, etc.
•    Provisions for a settlement process which will govern and determine the purchases, sales, and prices of all transactions between and among the parties and to maintain transmission  and  generation  outage  schedules.  A  final monthly  report  will  be  delivered by the Settlement Process Committee and each selling party will provide each purchasing party with an invoice.

Date Issued: 8/17/2020