The five utilities that buy power from the Alaska Energy Authority (AEA) (Ketchikan Public Utilities, Kodiak Electric Association, Copper Valley Electric Association, Petersburg Municipal Power and Light and City of Wrangell Light & Power,) commonly known as the Four Dam Pool,” have made a proposal to AEA to purchase the four hydroelectric facilities that serve their communities. The projects are owned by AEA, operated by the individual utilities and the utilities are the exclusive purchasers of power from the facilities under a 45 year power sales agreement with AEA that expires in 2030.
The proposal is to purchase the projects for $84 million; $74 million at closing and an additional $l0 million to be paid to the State upon retirement of the acquisition debt if certain contingencies have been met.
Dave Carlson, divestiture coordinator for the Four Dam Pool, believes that the State and the purchasing utilities have a proposal that works for both the purchasing utilities and the State. “This is a credible proposal that not only would relieve the State of its current liabilities with respect to the projects, but also provide a substantial amount of cash to the State to cover current budgetary shortfalls. The purchasing utilities have always believed that because these projects were built to serve their communities, it is only fitting that their communities own them.”
A report recently issued by the Commission of Privitization and Delivery of Government Services also recommended the sale of the project.
January 27, 2000