SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


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                                    FORM 10-Q

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     X   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
         SECURITIES EXHANGE ACT OF 1934


                For the quarterly period ended September 30, 2002


                                       OR


         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
         SECURITIES EXCHANGE ACT OF 1934

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                         Commission file number 33-42125


                       CHUGACH ELECTRIC ASSOCIATION, INC.


                Incorporated pursuant to the Laws of Alaska State

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       Internal Revenue Service - Employer Identification No. 92-0014224

                    5601 Minnesota Drive, Anchorage, AK 99518
                                 (907) 563-7494

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Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
Yes    X                   No

Indicate the number of shares outstanding of each of the issuer's class of
common stock, as of the latest practicable date.

                  CLASS                   OUTSTANDING AT NOVEMBER 1, 2002

                  NONE                                NONE

<PAGE>






                                                                     Page Number
CAUTION REGARDING FORWARD-LOOKING STATEMENTS

PART I FINANCIAL INFORMATION

Item 1.       Financial Statements (Unaudited)                                 2

              Balance Sheets, September 30, 2002 and December 31, 2001         3

              Statements of Revenues, Expenses and Patronage Capital,
              Three and Nine Months Ended September 30, 2002 and 2001          5

              Statements of Cash Flows, Nine Months Ended September 30, 2002
              and 2001                                                         6

              Notes to Financial Statements                                    7

Item 2.       Management's Discussion and Analysis of Results of Operations
              and Financial Condition                                        1 0

Item 3.       Quantitative and Qualitative Disclosures About Market Risk     1 6

Item 4.       Controls and Procedures                                        1 8

PART II OTHER INFORMATION

Item 1.       Legal Proceedings                                              1 8

Item 2.       Changes in Securities and Use of Proceeds                      1 8

Item 3.       Defaults Upon Senior Securities                                1 8

Item 4.       Submission of Matters to a Vote of Security Holders            1 8

Item 5.       Other Information                                              1 9

Item 6.       Exhibits and reports on Form 8-K                               1 9

              Signatures                                                     2 0

              Certification of Principal Executive Officer pursuant to
              Section 302 of the Sarbanes-Oxley Act of 2002                  2 1

              Certification of Principal Financial Officer pursuant to
              Section 302 of the Sarbanes-Oxley Act of 2002                  2 2

              Certification of Principal Executive Officer pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002                  2 3

              Certification of Principal Financial Officer pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002                  2 4

<page>
                  CAUTION REGARDING FORWARD-LOOKING STATEMENTS

     Statements in this report that do not relate to historical facts, including
     statements relating to future plans, events or performance, are
     forward-looking statements that involve risks and uncertainties. Actual
     results, events or performance may differ materially. Readers are cautioned
     not to place undue reliance on these forward-looking statements, that speak
     only as of the date of this report and the accuracy of which is subject to
     inherent uncertainty. Chugach Electric Association, Inc. (Chugach or the
     Association) undertakes no obligation to publicly release any revisions to
     these forward-looking statements to reflect events or circumstances that
     may occur after the date of this report or the effect of those events or
     circumstances on any of the forward-looking statements contained in this
     report, except as required by law.

                          PART I FINANCIAL INFORMATION

     Item 1.  Financial Statements

     The unaudited financial statements and notes to financial statements of
     Chugach for the quarter ended September 30, 2002, follow:

<PAGE>


                            CHUGACH ELECTRIC ASSOCIATION, INC.
                                      BALANCE SHEETS
<table>
<caption>

                                                                                (Unaudited)
                             Assets                                         September 30, 2002        December 31, 2001
                             ------                                         ------------------        -----------------
<S>                                                                   <C>                       <C>
Utility plant:

     Electric plant in service                                                 $ 732,604,958           $ 714,317,863

     Construction work in progress                                                22,150,983              28,887,008
                                                                                  ----------              ----------

                                                                                 754,755,941             743,204,871

     Less accumulated depreciation                                             (275,048,177)           (261,353,177)
                                                                               -------------           -------------

                                                                                 479,707,764             481,851,694

Other property and investments, at cost:

     Nonutility property                                                               3,550                   3,550

     Investments in associated organizations                                      10,544,946              10,485,186
                                                                                  ----------              ----------
                                                                                  10,548,496              10,488,736

Current assets:

     Cash and cash equivalents                                                     3,641,752               3,814,767

     Cash-restricted construction funds                                              587,243                 517,871

     Special deposits                                                                222,163                 222,163

     Accounts receivable, net                                                     16,027,570              22,302,400

     Fuel cost recovery                                                              401,272               3,591,963

     Materials and supplies                                                       23,986,827              22,822,003

     Prepayments                                                                   3,085,380                 627,544

     Other current assets                                                            346,299                 335,753
                                                                                     -------                 -------

                                                                                  48,298,506              54,234,464

Deferred charges                                                                  28,762,645              28,706,293
                                                                                  ----------              ----------

Total Assets                                                                   $ 567,317,411           $ 575,281,187
                                                                               =============           =============

<FN>

See accompanying notes to financial statements.
</FN>
</table>

<PAGE>


                              CHUGACH ELECTRIC ASSOCIATION, INC.
                                      BALANCE SHEETS
                                       (Continued)
<TABLE>
<CAPTION>
                                                                                 (Unaudited)
                     Liabilities and Equities                                September 30, 2002       December 31, 2001
                     ------------------------                                ------------------       -----------------
<S>                                                                          <C>                      <C>

Equities and margins:

     Memberships                                                                 $ 1,095,448             $ 1,059,098

     Patronage capital                                                           128,958,991             125,184,374

     Other                                                                         5,421,886               5,565,234
                                                                                   ---------               ---------

                                                                                 135,476,325             131,808,706
Long-term obligations, excluding current installments:

     First Mortgage (1991 Series A) Bond payable                                           0             149,310,000

     2001 Series A Bond payable                                                  150,000,000             150,000,000

     2002 Series A Bond payable                                                  120,000,000                       0

     2002 Series B Bond payable                                                   60,000,000                       0

     National Bank for Cooperatives Bonds payable                                 64,134,179              65,000,000
                                                                                  ----------              ----------

                                                                                 394,134,179             364,310,000
Current liabilities:

     Short-term obligations                                                       11,000,000              11,000,000

     Current installments of long-term obligations                                   865,821              10,409,945

     Accounts payable                                                              4,738,018              11,012,905

     Consumer deposits                                                             1,763,540               1,603,691

     Accrued interest                                                              2,059,527               7,378,058

     Salaries, wages and benefits                                                  5,027,391               4,844,819

     Fuel                                                                          7,096,506              11,565,117

     Other current liabilities                                                     1,487,602               1,900,155
                                                                                   ---------               ---------

                                                                                  34,038,405              59,714,690

     Deferred credits                                                              3,668,502              19,447,791
                                                                                   ---------              ----------

      Total Liabilities and Equities                                           $ 567,317,411           $ 575,281,187
                                                                               =============           =============

<FN>

See accompanying notes to financial statements.
</FN>
</table>
<PAGE>


                             CHUGACH ELECTRIC ASSOCIATION, INC.
                  Statements of Revenues, Expenses and Patronage Capital
                                        (Unaudited)
<TABLE>
<CAPTION>


                                                      Three months ended September 30      Nine months ended September 30
                                                          2002              2001               2002                2001
                                                          ----              ----               ----                ----
<S>                                                   <C>                <C>              <C>                 <C>

Operating revenues                                    $41,523,323        $42,186,684      $ 132,929,592       $ 126,400,956

Operating expenses:
     Fuel                                              11,320,700         12,537,245         36,016,679          39,441,150

     Power production                                   3,389,458          2,373,466         10,113,399           8,146,782

     Purchased power                                    4,165,054          5,176,508         14,172,137           9,147,759

     Transmission                                         876,754            860,666          2,871,203           2,731,599

     Distribution                                       2,522,722          2,484,640          7,746,900           7,260,234

     Consumer accounts/Information expense              1,478,932          1,424,496          4,373,951           4,042,754

     Sales expense                                              0            130,946                  0             352,051

     Administrative, general and other                  5,496,010          4,229,961         15,470,650          13,951,269

     Depreciation and amortization                      6,299,242          6,373,276         18,862,947          18,678,752
                                                        ---------          ---------         ----------          ----------

         Total operating expenses                      35,548,872         35,591,204        109,627,866         103,752,350

Interest expense:
     On long-term obligations                           6,026,315          7,029,623         20,158,954          20,116,937

     On short-term obligations                             70,644             14,166            229,436           1,105,954

     Charged to construction-credit                     (102,069)          (363,665)          (358,663)           (814,285)
                                                        ---------          ---------          ---------           ---------

         Net interest expense                           5,994,890          6,680,124         20,029,727          20,408,606
                                                        ---------          ---------         ----------          ----------

         Net operating margins                           (20,439)           (84,644)          3,271,999           2,240,000

Nonoperating margins:
     Interest income                                       93,200            156,645            638,401             536,828

     Other                                                (1,827)            162,395            266,709             381,818

     Property gain (loss)                                   3,273          (192,138)          (188,751)           (180,456)
                                                            -----          ---------          ---------           ---------

         Total nonoperating margins                        94,646            126,902            716,359             738,190
                                                           ------            -------            -------             -------

         Assignable margins                                74,207             42,258          3,988,358           2,978,190
                                                           ======             ======          =========           =========

Patronage capital at beginning of period              128,955,925        125,743,981        125,184,374         122,925,253

Retirement of capital credits and estate
  Payments                                               (71,141)          (115,645)          (213,741)           (232,849)
                                                         --------          ---------          ---------           ---------

Patronage capital at end of period                  $ 128,958,991      $ 125,670,594      $ 128,958,991       $ 125,670,594
                                                    =============      =============      =============       =============

<FN>

See accompanying notes to financial statements.
</FN>
</table>
<PAGE>
                             CHUGACH ELECTRIC ASSOCIATION, INC.
                                 Statements of Cash Flows
                                       (Unaudited)
<TABLE>
<CAPTION>

                                                                                            Nine months ended September 30
                                                                                                2002             2001
                                                                                                ----             ----
<S>                                                                                        <C>               <C>




Cash flows from operating activities:
         Assignable margins                                                                  $3,988,358       $2,978,190

Adjustments to reconcile assignable margins to net cash provided (used) by
operating activities:

         Depreciation and amortization                                                       18,862,947       18,678,752
         Capitalization of interest                                                           (401,431)      (1,048,122)
         Property gains, net                                                                  (188,751)        (190,456)
         Other                                                                                    2,116         (11,920)

       Changes in assets and liabilities:
          (Increase) decrease in assets:
         Fuel cost recovery                                                                   3,190,691        1,308,950
         Accounts receivable                                                                  6,274,830        (289,140)
         Prepayments                                                                        (2,457,835)        (757,158)
         Materials and supplies                                                             (1,164,824)          375,836
         Deferred charges                                                                     1,655,610      (2,826,912)
         Other                                                                                 (10,546)          607,881

       Increase (decrease) in liabilities:
         Accounts payable                                                                   (5,641,761)      (6,006,155)
         Consumer deposits                                                                      159,849          224,087
         Accrued interest                                                                   (5,318,532)      (4,458,649)
         Deferred credits                                                                  (15,743,826)      (1,690,660)
         Other                                                                              (5,331,718)        1,223,545
                                                                                            -----------        ---------
                  Net cash (used) provided by operating activities                          (2,124,823)        8,118,069

Cash flows from investing activities:
         Extension and replacement of plant                                                (17,840,797)     (29,610,734)
         Investments in associated organizations                                               (61,876)        (80,063)
                                                                                               --------        --------
                  Net cash used in investing activities                                    (17,902,673)     (29,690,797)

Cash flows from financing activities:
         Short-term obligations                                                                       0     (35,000,000)
         Proceeds from long-term obligations                                                180,000,000      150,000,000
         Repayments of long-term obligations                                              (159,719,945)     (88,930,350)
         Retirement of patronage capital                                                      (213,741)        (232,849)
         Other                                                                                (211,833)        (116,618)
                                                                                              ---------        ---------
                  Net cash provided by financing activities                                  19,854,481       25,720,183

Net increase (decrease) in cash and cash equivalents                                          (173,015)        4,147,455

Cash and cash equivalents at beginning of period                                             $3,814,767       $1,695,162
------------------------------------------------                                             ----------       ----------

Cash and cash equivalents at end of period                                                   $3,641,752       $5,842,617
------------------------------------------                                                   ==========       ==========

Supplemental disclosure of cash flow information - interest expense paid, net of
amounts capitalized                                                                          25,348,258       24,867,255
                                                                                             ==========       ==========

<FN>


See accompanying notes to financial statements.
</FN>
</table>
<PAGE>











                        CHUGACH ELECTRIC ASSOCIATION, INC.
                           Notes to Financial Statements
                                  (Unaudited)

     1.  Presentation of Financial Information

     During interim periods, Chugach Electric Association, Inc. (Chugach or
     Association) follows the accounting policies set forth in its audited
     financial statements included in Form 10-K filed with the Securities and
     Exchange Commission unless otherwise noted. Users of interim financial
     information are encouraged to refer to the footnotes contained in Chugach's
     Form 10-K when reviewing interim financial results. The accompanying
     unaudited interim financial statements reflect all adjustments, which are,
     in the opinion of management, necessary for a fair statement of the results
     for the interim periods presented.

     Certain reclassifications have been made to the 2001 financial statements
     to conform to the 2002 presentation.

     2.  Lines of credit

     Chugach maintains a line of credit of $35 million with CoBank, ACB
     (CoBank). The CoBank line of credit expires February 1, 2003, but is
     subject to annual renewal. At September 30, 2002, $11 million was
     outstanding on this line of credit at an interest rate of 3.24%. In
     addition, the Association has an annual line of credit of $50 million
     available at the National Rural Utilities Cooperative Finance Corporation
     (NRUCFC). The NRUCFC line of credit expired October 14, 2002, but is
     pending finalization of a new revolving line of credit agreement, which
     Chugach expects to occur in November 2002. At September 30, 2002, there was
     no outstanding balance on this line of credit.

     3.  Environmental Matters

     The Association discovered polychlorinated biphenyls (PCBs) in paint, caulk
     and grease at the Cooper Lake Hydroelectric plant during initial phases of
     a turbine overhaul. A Federal Energy Regulatory Commission (FERC) approved
     plan, prepared in consultation with the Environmental Protection Agency
     (EPA), was implemented to remediate the PCBs in the plant. As a condition
     of its approval of the license amendment for the overhaul project, FERC
     required Chugach to also investigate the presence of PCBs in Kenai Lake. A
     sampling plan was developed by Chugach in consultation with state and
     federal agencies and approved by FERC. In 2000, Chugach sampled sediments
     and fish collected from Kenai Lake and other waters. While low levels of
     PCBs were found in some sediment samples taken near the plant, no pathway
     from sediment to fish was established. While the levels of PCBs in fish
     from Kenai Lake were similar to levels found in fish from other lakes
     within the region, Chugach has conducted additional sampling and analysis
     of fish in Kenai Lake and other waters and on April 1, 2002, filed its
     final report to FERC, which analyzed the results of the sampling. Based on
     these analyses, Chugach concluded that no further PCB sampling and analysis
     in Kenai Lake was necessary. In a letter dated June 18, 2002, FERC informed
<Page>
     Chugach that its review of the report supported Chugach's conclusions and
     agreed that Chugach was not required to conduct further PCB sampling and
     analysis in Kenai Lake. Management believes the costs of this work will be
     recoverable through rates and therefore will have no material impact on our
     financial condition or results of operations. The Regulatory Commission of
     Alaska, (RCA) has issued an order to Chugach allowing Chugach to record its
     remediation costs as a Financial Accounting Standards Board (FASB) 71
     asset, subject to a determination, in the presently ongoing rate case, of
     the level of prudently-incurred costs that may be recovered through rates.

     4.  Legal Proceeding

     Matanuska Electric Association, Inc., v. Chugach Electric Association,
     Inc., Superior Court Case No. 3AN-99-8152 Civil

     This action is a claim for a breach of the Tripartite Agreement, which is
     the contract governing the parties' relationship for a 25-year period from
     1989 through 2014 and governing the Association's sale of power to
     Matanuska Electric Association, Inc. (MEA) during that time. MEA asserted
     the Association breached that contract by failing to provide a variety of
     kinds of information, by failing to properly manage the Association's
     long-term debt, and by failing to bring its base rate action to a Joint
     Committee, a committee defined in the power sales contract consisting of
     one MEA and two Chugach board members, before presenting it to the RCA. All
     of MEA's claims have been dismissed. On April 29, 2002, MEA appealed the
     Superior Court's decisions relating to Chugach's financial management and
     its failure to bring its base rate action to the joint committee before
     filing with the RCA to the Alaska Supreme Court. Management is uncertain as
     to the outcome but will vigorously defend the appeal.

     Chugach has certain additional litigation matters and pending claims that
     arise in the ordinary course of its business. In the opinion of management,
     no individual matter or the matters in the aggregate is likely to have a
     material adverse effect on our results of operations, financial condition
     or liquidity.

     5.  Critical Accounting Policies

     The preparation of financial statements in conformity with principles
     generally accepted in the United States of America (GAAP) requires that
     management apply accounting policies and make estimates and assumptions
     that affect results of operations and reported amounts of assets and
     liabilities in the financial statements. The following areas represent
     those that management believes are particularly important to the financial
     statements and that require the use of estimates and assumptions to
     describe matters that are inherently uncertain.

     FERC Accounting

     Chugach prepares its financial statements in accordance with GAAP and in
     conformity with the FERC's uniform system of accounts.



<PAGE>


     Cost Basis Regulation

     Chugach is subject to regulation by the RCA. The rates that are charged by
     Chugach to its customers are based upon cost basis regulation reviewed and
     approved by this regulatory commission. Under the authority of this
     commission, Chugach has recorded certain regulatory assets in the amount of
     $16.2 million as of September 30, 2002. If Chugach's rates were no longer
     based upon cost or there was no longer the probability of future collection
     in rates, these assets and liabilities would be written off against
     assignable margins.

     Financial Instruments and Hedging

     Chugach has previously used U.S. Treasury forward rate lock agreements to
     hedge expected interest rates on debt. The Association accounted for the
     agreements under SFAS 80 and 71 through December 31, 2000, and SFAS 133,
     138 and 71 subsequent to that date. Gains or losses are treated as
     regulatory assets or liabilities upon settlement. If Chugach's rates were
     no longer based upon cost or there was no longer the probability of future
     collection in rates, these assets and liabilities would be written off
     against assignable margins. Based on historical regulatory treatment on
     previous refinancing, management believes the establishment and recovery of
     Chugach's regulatory assets and liabilities is appropriate. Accounting for
     derivatives continues to evolve through guidance issued by the Derivatives
     Implementation Group (DIG) of the FASB. To the extent that changes by the
     DIG modify current guidance, the accounting treatment for derivatives may
     change.

     6.  Recent Accounting Pronouncements

     In April 2002, the FASB issued Statement No. 145, Rescission of FASB
     Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
     Technical Corrections.  Statement No. 145 eliminates the treatment of
     extinguishment of debt as extraordinary and clarifies the accounting for
     certain sale-leaseback transactions.  The provisions of Statement No. 145
     are required to be applied starting with fiscal years beginning after May
     15, 2002, with early adoption encouraged.  The Association believes the
     adoption of Statement No. 145 will have no impact on its financial
     statements, as the costs associated with the extinguishment of debt are
     accounted for under the provisions of Statement No. 71, Accounting for the
     Effects of Certain Types of Regulation and the Association does not engage
     in sale-leaseback transactions.

     In July 2002, the FASB issued Statement No. 146, Accounting for Costs
     Associated with Exit or Disposal Activities.  Statement No. 146 requires
     companies to recognize costs associated with exit or disposal activities
     when they are incurred rather than at the date of a commitment to an exit
     or disposal plan.  The provisions of Statement No. 146 are required to be
     applied prospectively to exit or disposal activities initiated after
     December 31, 2002.  The Association believes the adoption of Statement No.
     146 will have no impact on its financial statements.




<PAGE>


     Item 2.  Management's Discussion and Analysis of Financial Condition and
     Results of Operations

     Reference is made to the information contained under the caption "CAUTION
     REGARDING FORWARD-LOOKING STATEMENTS" at the beginning of this Report.

     Recent Accounting Pronouncements

     In April 2002, the FASB issued Statement No. 145, Rescission of FASB
     Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
     Technical Corrections.  Statement No. 145 eliminates the treatment of
     extinguishment of debt as extraordinary and clarifies the accounting for
     certain sale-leaseback transactions.  The provisions of Statement No. 145
     are required to be applied starting with fiscal years beginning after May
     15, 2002, with early adoption encouraged.  The Association believes the
     adoption of Statement No. 145 will have no impact on its financial
     statements, as the costs associated with the extinguishment of debt are
     accounted for under the provisions of Statement No. 71, Accounting for the
     Effects of Certain Types of Regulation and the Association does not engage
     in sale-leaseback transactions.

     In July 2002, the FASB issued Statement No. 146, Accounting for Costs
     Associated with Exit or Disposal Activities.  Statement No. 146 requires
     companies to recognize costs associated with exit or disposal activities
     when they are incurred rather than at the date of a commitment to an exit
     or disposal plan.  The provisions of Statement No. 146 are required to be
     applied prospectively to exit or disposal activities initiated after
     December 31, 2002.  The Association believes the adoption of Statement No.
     146 will have no impact on its financial statements.

     Regulatory Matters

     Docket U-01-108

     Chugach submitted a general rate case based on the 2000 test year to the
     RCA on July 10, 2001. The filing requested an overall system base rate
     increase of 4.0 percent on an interim basis and 6.5 percent on a permanent
     basis. The Commission opened Docket U-01-108 to address the issues relating
     to the 2000 test year period rate filing.

     On September 5, 2001, the RCA issued Order No. 1 in Docket U-01-108 that
     authorized an interim base demand and energy rate increase of 1.6 percent
     for retail and wholesale billings effective September 14, 2001. Chugach
     retail customers under the small general service and lighting tariffs were
     exempt from the increase.

     On September 25, 2001, Chugach submitted a request for reconsideration to
     the RCA regarding specific adjustments to Chugach's revenue requirement
     contained in the Commission order. On October 25, 2001, the Commission
     ruled on Chugach's request for reconsideration, and granted an interim base
     demand and energy rate increase of 3.97 percent, or about 2.4 percentage
     points higher than the initial authorized increase of 1.6 percent. Chugach
     <Page>
     submitted a compliance filing implementing the Commission's Order on
     October 30, 2001, and the additional rate increase was effective in
     November 2001.

     The interim rate increase was based on a normalized (adjusted for recurring
     expenses) test year and a system ratemaking Times Interest Earned Ratio
     (TIER) of 1.35.

     As anticipated in Chugach's July 2001 original filing, on April 15, 2002,
     Chugach submitted a filing with the RCA to update certain known and
     measurable costs and savings that had occurred outside the 2000 Test Year.
     In the updated filing, Chugach reduced its base rate increase request from
     6.5% to 5.7%, or approximately $0.9 million in the revenue requirement on a
     system basis. The revised filing also reflected an increase in depreciation
     expense of approximately $1.5 million due to the completion of the Beluga
     Unit 7 re-powering project and a reduction in annualized interest expense,
     due to Chugach's recent refinancing efforts, of $2.4 million. In this
     revised filing, Chugach continues to request $11.9 million in margins. As a
     result of reduced interest costs, this would yield an equivalent system
     TIER of 1.47.

     Three intervenors filed pre-filed testimony with the Commission in July
     2002 opposing various aspects of Chugach's proposal. Chugach filed its
     reply testimony with the Commission during October 2002. A hearing has been
     scheduled for November and December 2002 to resolve the outstanding issues
     associated with the 2000 test year rate case. A final Commission order is
     expected in 2003.

     Results Of Operations

     Current Year Quarter Versus Prior Year Quarter

     In general, assignable margins did not materially change from the quarter
     ended September 30, 2002, over the same quarter in 2001.

     Operating revenues, which include sales of electric energy to retail,
     wholesale and economy energy customers and other miscellaneous revenues,
     decreased by $663.4 thousand, or 1.6%, for the quarter ended September 30,
     2002, over the same quarter in 2001. The decrease in revenues was due to
     decreased fuel prices, resulting in decreased revenue collected through the
     fuel surcharge cost recovery mechanism.

     The following table represents kWh sales for the quarter ended September
     30:

                                 2002                  2001
                                 ----                  ----
           Customer               kWh                  kWh
      Retail                  258,530,607          248,302,947
      Wholesale               265,987,798          265,847,324
      Economy Energy           34,830,310           32,693,020
                               ----------           ----------
      Total                   559,348,715          546,843,291
                            =============         ============
<Page>
     Retail demand and energy rates for all rate classes except small commercial
     and public street and highway lighting increased 3.97% in the third quarter
     of 2002 compared to the third quarter of 2001. Over this same period, the
     wholesale demand and energy rates charged to HEA and MEA also increased by
     3.97%. These increases reflected the interim rate increase authorized by
     the RCA in 2001. Wholesale demand and energy rates charged to Seward
     Electric System (SES) did not change in this quarter compared to the same
     quarter last year.

     Fuel expense decreased by $1.2 million, or 9.7%, for the quarter ended
     September 30, 2002, compared to the same period in 2001 due to lower fuel
     prices. Power production expense increased by $1.0 million, or 42.8%, due
     to continued maintenance on Beluga unit 8 and the repair of Cooper Lake
     unit 2. Purchased power expense decreased by $1.0 million, or 19.5%, due to
     a Nikiski maintenance outage in September of 2002. Transmission,
     distribution and consumer accounts/information expense did not materially
     change for the three-month period ended September 30, 2002. Administrative,
     general and other expenses increased by $1.3 million, or 29.9%, for the
     three-month period ended September 30, 2002, due to increased insurance
     costs, increased Information Services, (IS) /garage clearing and increased
     regulatory costs associated with the current rate case.

     Interest on long-term debt decreased by $1.0 million, or 14.3%, due to
     lower interest rates. Interest charged to construction decreased by $261.6
     thousand, or 71.9%, in the third quarter of 2002 compared to the same
     period in 2001 due to less construction activity. Other interest expense
     increased by $56.5 thousand, or 398.7%, from the third quarter of 2001 due
     to a consistent outstanding balance on the CoBank line of credit in the
     third quarter of 2002.

     Other nonoperating margins were $32.3 thousand, or 25.4%, lower for the
     quarter ended September 30, 2002, compared to the same period in 2001 due
     to the abandonment and write off of a web-enabling project.

     Current Year to Date Versus Prior Year to Date

     In general, assignable margins increased due to the increase in revenue
     caused by the interim rate increase implemented during the fourth quarter
     of 2001 and a decrease in other interest expense. These were offset by an
     increase in production and administrative, general and other expense.

     Operating revenues increased by $6.5 million, or 5.2%, in the first nine
     months of 2002, over the same period in 2001. The increase in revenues was
     due to the interim rate increase of 3.97%, which was approved and
     implemented during the fourth quarter of 2001. It was also due to a net
     increase in purchased power and fuel costs, which resulted in increased
     revenue collected through the fuel and purchased power surcharge mechanism,
     as well as increased kWh sales.



<PAGE>


     The following table represents kWh sales for the nine months ended
     September 30:

                                   2002                  2001
                                   ----                  ----
     Customer                       kWh                    kWh
     Retail                     831,036,637           806,213,531
     Wholesale                  828,322,490           757,667,529
     Economy Energy              80,537,210            76,785,790
                                 ----------            ----------
     Total                    1,739,896,337         1,640,666,850
                              =============         =============

     Fuel expense decreased by $3.4 million, or 8.7%, for nine months ended
     September 30, 2002, compared to the same period in 2001 due to lower fuel
     prices. Power production expense increased by $2.0 million, or 24.1%, due
     to increased maintenance on Beluga unit 3 and unit 8, Bernice Lake unit 4
     and Cooper Lake unit 2. Purchased power expense increased by $5.0 million,
     or 54.9%, due to the new contract with Nikiski, a co-generation power plant
     owned by Alaska Electric Generation & Transmission (AEG&T) (HEA).
     Distribution expense increased $486.7 thousand, or 6.7%, due to a
     modification in our right-of-way clearing schedule, which does not
     substantially change the annual expense expected by year-end. In addition,
     we have experienced a higher level of underground cable failures resulting
     in higher distribution maintenance expense. Administrative, general and
     other increased by $1.5 million, or 10.9%, due to increased labor,
     information services clearing and insurance costs.

     Interest on long-term debt did not materially change from September 30,
     2001, to September 30, 2002. Interest charged to construction decreased by
     $455.6 thousand, or 56.0%, in the nine months ended September 30, 2002,
     compared to the same period in 2001 due to lower construction work in
     progress balances as well as lower overall cost of debt. Other interest
     expense decreased by $876.5 thousand, or 79.3%, due to lower outstanding
     balances on the lines of credit.

     Other nonoperating margins did not materially change in the first nine
     months of 2002 compared to the same period in 2001.

     Financial Condition

     Total assets decreased $8.0 million, or 1.4%, from December 31, 2001, to
     September 30, 2002. The decrease was due in part to a $2.1 million, or
     0.4%, decrease in net plant. The decrease was also due to a $6.3 million,
     or 39.2%, decrease in accounts receivable caused by the payment of
     wholesale power invoices that were accrued but not paid at December 31,
     2001; however, that amount was offset by an increase in billings to the
     state of Alaska for facility relocation construction work performed during
     the summer. The decrease in total assets was also due to a $3.2 million, or
     88.8%, decrease in fuel cost recovery from the collection of the prior
     quarter's fuel cost adjustment.

     The decrease in total assets was offset by a $2.5 million, or 391.7%,
     increase in prepayments caused by the prepayment of generation parts and a
     $1.2 million, or 5.1%, increase in materials and supplies.
<Page>
     Notable changes to total liabilities and equities include a $3.7 million,
     or 2.8%, increase in patronage capital and a $29.8 million, or 8.2%,
     increase in long-term obligations associated with the 2002 refinancing.
     These increases were offset by a $9.5 million, or 91.7%, decrease in
     current installments of long-term obligations due to the final payment of
     the 1991 Series A Bond due 2002 and the $5 million payment of the first
     installment of CoBank 5.

     There was a $6.3 million, or 57.0%, decrease in accounts payable caused by
     the payment of invoices that were accrued at December 31, 2001. There was
     also a $5.3 million, or 72.1%, decrease in accrued interest due to lower
     interest rates on our debt after the 2002 refinancing, in addition to a
     semi-annual interest payment of approximately $4.9 million on the 2001
     Series A Bonds in the third quarter. There was also a $4.5 million, or
     38.6%, decrease in fuel payable caused by lower fuel prices in the first
     nine months of 2002.

     Deferred credits decreased $15.8 million, or 81.1%, due to the premium that
     offset the gain associated with the 1991 Series A Bond due 2022 that was
     refinanced in the first quarter of 2002.

     Liquidity and Capital Resources

     Chugach has satisfied its operational and capital cash requirements
     primarily through internally generated funds, an annual $50 million line of
     credit from NRUCFC and a $35 million line of credit with CoBank. At
     September 30, 2002, there was no outstanding balance with NRUCFC. At
     September 30, 2002, there was $11 million outstanding under the CoBank line
     of credit, which carried an interest rate of 3.24%.

     Chugach also has a term loan facility with CoBank. Loans made under this
     facility are evidenced by bonds secured by Chugach's existing mortgage
     indenture. At September 30, 2002, Chugach had the following bonds
     outstanding under this term loan facility:
<TABLE>
<CAPTION>

                                                     Interest rate at                             Principal Payment
          Bond              Principal balance       September 30, 2002        Maturity Date             Dates
<S>     <C>                 <C>                     <C>                       <C>                 <C>


        CoBank 2               $10,000,000                 7.76%                   2005                 2005
        CoBank 3               $21,500,000                 5.60%                   2022              2003 - 2022
        CoBank 4               $23,500,000                 5.60%                   2022              2003 - 2022
        CoBank 5               $10,000,000                 5.60%                   2012              2002 - 2012

         Total                 $65,000,000
</TABLE>



<PAGE>


     The $5 million principal payment made in June of 2002 on CoBank 5 is
     currently being carried on our CoBank line of credit and included in short
     term debt. Upon completion of the CoBank Master Loan Agreement, that amount
     will become long-term debt with an expiration date of 2007.

     Chugach and CoBank have tentatively agreed on the terms of a new Master
     Loan Agreement pursuant to which the existing term loan facility will be
     converted from secured to unsecured debt and the obligations represented by
     the outstanding bonds held by CoBank will be converted into promissory
     notes governed by the new Master Loan Agreement. Upon the substitution of
     promissory notes for the CoBank bonds, Chugach's existing mortgage
     indenture will be replaced in its entirety by an Amended and Restated
     Indenture dated April 1, 2001, all liens and security interests imposed
     under the indenture will be terminated and all outstanding Chugach bonds
     (including New Bonds of 2001 Series A, 2002 Series A and 2002 Series B)
     will become unsecured obligations governed by the terms of the Amended and
     Restated Indenture.

     Capital construction in 2002 is estimated at $29.4 million. At September
     30, 2002, approximately $17.8 million had been expended. Capital
     improvement expenditures are expected to decrease in the upcoming fourth
     quarter as the construction season ends.

     Chugach management continues to expect that cash flows from operations and
     external funding sources will be sufficient to cover operational and
     capital funding requirements in 2002 and thereafter.

     Outlook

     Chugach reorganized in June 2002 when the longstanding Chief Financial
     Officer, (CFO) accepted the General Manager position. The Association now
     has four senior vice-president level organizational entities: CFO (Finance
     and Accounting), Energy Supply, Power Delivery and Administration. A Chief
     of Staff position was also created and staffed by in-house senior
     management. We believe this structure will better facilitate the
     organization's ability to effectively manage future challenges including
     competition.

     Environmental Matters

     Compliance with Environmental Standards

     Chugach's operations are subject to certain federal, state and local
     environmental laws that Chugach monitors to ensure compliance. The costs
     associated with environmental compliance are included as a component of
     both the operating and capital budget processes. Chugach accrues for costs
     associated with environmental remediation obligations when such costs are
     probable and reasonably estimable.



<PAGE>


     Environmental Matters

     The Association discovered polychlorinated biphenyls (PCBs) in paint, caulk
     and grease at the Cooper Lake Hydroelectric plant during initial phases of
     a turbine overhaul. A Federal Energy Regulatory Commission (FERC) approved
     plan, prepared in consultation with the Environmental Protection Agency
     (EPA), was implemented to remediate the PCBs in the plant. As a condition
     of its approval of the license amendment for the overhaul project, FERC
     required Chugach to also investigate the presence of PCBs in Kenai Lake. A
     sampling plan was developed by Chugach in consultation with state and
     federal agencies and approved by FERC. In 2000, Chugach sampled sediments
     and fish collected from Kenai Lake and other waters. While low levels of
     PCBs were found in some sediment samples taken near the plant, no pathway
     from sediment to fish was established. While the levels of PCBs in fish
     from Kenai Lake were similar to levels found in fish from other lakes
     within the region, Chugach has conducted additional sampling and analysis
     of fish in Kenai Lake and other waters and on April 1, 2002, filed its
     final report to FERC, which analyzed the results of the sampling. Based on
     these analyses, Chugach concluded that no further PCB sampling and analysis
     in Kenai Lake was necessary. In a letter dated June 18, 2002, FERC informed
     Chugach that its review of the report supported Chugach's conclusions and
     agreed that Chugach was not required to conduct further PCB sampling and
     analysis in Kenai Lake. Management believes the costs of this work will be
     recoverable through rates and therefore will have no material impact on our
     financial condition or results of operations. The Regulatory Commission of
     Alaska, (RCA) has issued an order to Chugach allowing Chugach to record its
     remediation costs as a FASB 71 asset, subject to a determination, in the
     presently ongoing rate case, of the level of prudently-incurred costs that
     may be recovered through rates.

     Item 3. Quantitative and Qualitative Disclosures About Market Risk

     Chugach is exposed to a variety of risks, including changes in interest
     rates and changes in commodity prices due to repricing mechanisms inherent
     in gas supply contracts. In the normal course of our business, we manage
     our exposure to these risks as described below. Chugach does not engage in
     trading market risk-sensitive instruments for speculative purposes.



<PAGE>


     Interest Rate Risk

     As of September 30, 2002, except for the 2002 Series B Bond, which carries
     a variable interest rate and is re-priced every 28 days, all of our
     outstanding long-term obligations were at fixed interest rates with varying
     maturity dates. The Auction Rate Bond bore interest at 1.97% from the date
     of original delivery to and through February 27, 2002. The following table
     provides information regarding subsequent auction dates and rates.

                     Auction Date                   Interest Rate

                  February 27, 2002                     2.00%
                    March 27, 2002                      2.00%
                    April 27, 2002                      1.97%
                     May 22, 2002                       1.97%
                    June 19, 2002                       1.95%
                    July 17, 2002                       1.90%
                   August 14, 2002                      1.84%
                  September 11, 2002                    1.95%
                   October 9, 2002                      1.92%
                   November 6, 2002                     1.75%

     The following table provides information regarding cash flows for principal
     payments on total debt by maturity date (dollars in thousands) as of
     September 30, 2002.

<TABLE>
<CAPTION>
                                                                                                            Fair
Total Debt*               2002       2003     2004      2005        2006      Thereafter       Total        Value
-----------               ----       ----     ----      ----        ----      ----------       -----        -----
<S>                     <C>         <C>       <C>      <C>         <C>        <C>             <C>         <C>


Fixed rate                   $0      $866      $945    $11,031     $1,126      $321,032       $335,000    $367,556

Average
interest rate                --     5.60%     5.60%      7.56%      5.60%         6.27%          6.30%

Variable rate           $11,000        $0        $0         $0         $0       $60,000        $71,000     $71,000

Average
interest rate             3.24%        --        --         --         --         1.75%          1.98%

<FN>

     *   Includes current portion
</FN>
</table>
     Commodity Price Risk

     Chugach's gas contracts provide for adjustments to gas prices based on
     fluctuations of certain commodity prices and indices. Because purchased
     power costs are passed directly to our wholesale and retail customers
     through a fuel surcharge, fluctuations in the price paid for gas pursuant
     to long-term gas supply contracts do not normally impact margins. The fuel
     surcharge mechanism mitigates the commodity price risk related to market
     fluctuations in the price of purchased power.
<Page>
     Item 4. Controls and Procedures

     The Association's management, including the Principal Executive Officer and
     the Chief Financial Officer, evaluated the Company's disclosure controls
     and procedures (as defined in Rule 13a-14(c) under the Securities Exchange
     Act of 1934) within 90 days prior to the filing date of this quarterly
     report. Based on this evaluation, the Chief Executive Officer and the Chief
     Financial Officer concluded that the Company's disclosure controls and
     procedures are effective. There were no significant changes in the
     Association's internal controls that could significantly affect its
     disclosure controls and procedures since the date of the evaluation.

                            PART II OTHER INFORMATION

     Item 1. Legal Proceedings

     Matanuska Electric Association, Inc., v. Chugach Electric Association,
     Inc., Superior Court Case No. 3AN-99-8152 Civil

     This action is a claim for a breach of the Tripartite Agreement, which is
     the contract governing the parties' relationship for a 25-year period from
     1989 through 2014 and governing the Association's sale of power to
     Matanuska Electric Association, Inc. (MEA) during that time. MEA asserted
     the Association breached that contract by failing to provide a variety of
     kinds of information, by failing to properly manage the Association's
     long-term debt, and by failing to bring its base rate action to a Joint
     Committee, a committee defined in the power sales contract consisting of
     one MEA and two Chugach board members, before presenting it to the RCA. All
     of MEA's claims have been dismissed. On April 29, 2002, MEA appealed the
     Superior Court's decisions relating to Chugach's financial management and
     its failure to bring its base rate action to the joint committee before
     filing with the RCA to the Alaska Supreme Court. Management is uncertain as
     to the outcome but will vigorously defend the appeal.

     Chugach has certain additional litigation matters and pending claims that
     arise in the ordinary course of its business. In the opinion of management,
     no individual matter or the matters in the aggregate is likely to have a
     material adverse effect on our results of operations, financial condition
     or liquidity.

     Item 2. Changes in Securities and Use of Proceeds

     Not applicable

     Item 3. Defaults Upon Senior Securities

     Not applicable

     Item 4. Submission of Matters to a Vote of Security Holders

     Not applicable
<Page>
     Item 5. Other Information

     On August 12, 2002 MEA filed a request with the Regulatory Commission of
     Alaska asking that Chugach's Certificate of Public Convenience and
     Necessity (CPCN) be amended to eliminate retail service and requesting that
     the retail services portion of the CPCN be included in MEA's CPCN. In an
     order issued August 29, 2002, the Regulatory Commission of Alaska summarily
     rejected the request.

     Item 6. Exhibits and Reports on Form 8-K

     (a)      Exhibits:

              No exhibits are being filed with this report for the quarter
              ended September 30, 2002.

     (b)      Reports on Form 8-K:

              No reports on Form 8-K were filed for the quarter ended
              September 30, 2002.



<PAGE>









                                Signatures

     Pursuant to the requirements of the Securities and Exchange Act of 1934,
     the registrant has duly caused this report to be signed on its behalf by
     the undersigned thereunto duly authorized.



                                            CHUGACH ELECTRIC ASSOCIATION, INC.


                                            By:      /s/ Evan J. Griffith

                                                     Evan J. Griffith
                                                     General Manager

                                            Date:    November 14, 2002


                                            By:      /s/ Michael R. Cunningham

                                                     Michael R. Cunningham
                                                     Chief Financial Officer

                                            Date:    November 14, 2002


<PAGE>


                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
            PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Evan J. Griffith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Chugach Electric
Association, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
                  a) Designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
                  b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
                  c) Presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
                  a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
                  b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:  November 14, 2002         /s/ Evan J. Griffith

                                 Evan J. Griffith
                                 General Manager and Principal Executive Officer
<Page>
                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
            PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael R. Cunningham, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Chugach Electric
Association, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
                  a) Designed such disclosure controls and procedures to ensure
that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this quarterly report is being prepared;
                  b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing date of
this quarterly report (the "Evaluation Date"); and
                  c) Presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent function):
                  a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified for the
registrant's auditors any material weaknesses in internal controls; and
                  b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officer and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.


Date:  November 14, 2002         /s/ Michael R. Cunningham

                                 Michael R. Cunningham
                                 Chief Financial Officer
<Page>
                  CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER
            PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this quarterly report of Chugach Electric Association, Inc.
(the "Company") on Form 10-Q for the period ending September 30, 2002, I, Evan
J. Griffith, General Manager and Principal Executive Officer of the Company,
certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the
Sarbanes-Oxley Act of 2002, that:

(a) This quarterly report fully complies with the requirements of section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

(b) The information contained in this quarterly report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Date:  November 14, 2002        /s/ Evan J. Griffith

                                Evan J. Griffith
                                General Manager and Principal Executive Officer




<PAGE>


                  CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER
            PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this quarterly report of Chugach Electric Association, Inc.
(the "Company") on Form 10-Q for the period ending September 30, 2002, I,
Michael R. Cunningham, Chief Financial Officer of the Company, certify, pursuant
to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act
of 2002, that:

(a) This quarterly report fully complies with the requirements of section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and

(b) The information contained in this quarterly report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Date:  November 14, 2002         /s/ Michael R. Cunningham

                                 Michael R. Cunningham
                                 Chief Financial Officer