FORM 10-Q
            SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C. 20549

(Mark One)

   X     QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
-------
              SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended        September 30, 2000
                               --------------------------------------

                              OR

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

For the transition period from___________________to__________________
Commission file number     33-42125

                Chugach Electric Association, Inc.
     (Exact name of registrant as specified in its charter)

    Alaska                                            92-0014224
(State or other jurisdiction of                    (I.R.S. Employer
incorporation or organization)                     Identification No.)

    5601 Minnesota Drive         Anchorage, Alaska              99518
--------------------------------------------------------------------------------
(Address of principal executive offices)                      (Zip Code)

    (907)563-7494
(Registrant's telephone number, including area code)


    None
(Former name,former address and former fiscal year,if changed since last report)

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 .

                APPLICABLE ONLY TO CORPORATE ISSUERS:

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

    CLASS                                        OUTSTANDING AT NOVEMBER 1, 2000
    -----                                        -------------------------------

    NONE                                                     NONE

                  CHUGACH ELECTRIC ASSOCIATION, INC.

                               INDEX

                                                                     Page Number

CAUTION REGARDING FORWARD-LOOKING STATEMENTS                              3

PART I FINANCIAL INFORMATION

Item 1.  Financial Statements                                             3

Balance Sheets, September 30, 2000 (Unaudited) and December 31, 1999      4

Statements of Revenues, Expenses and Patronage Capital, Three and
Nine Months Ended September 30, 2000 and 1999  (Unaudited)                6

Statements of Cash Flows, Nine Months Ended September 30, 2000 and
1999(Unaudited)                                                           7

Notes to Financial Statements (Unaudited)                                 8

Item 2.  Management's Discussion and Analysis of Results of Operations
and Financial Condition (Unaudited)                                      10

Item 3.  Quantitative and Qualitative Disclosures About Market Risk      14

PART II OTHER INFORMATION

Item 1.  Legal Proceedings                                               15

Item 2.  Changes in Securities and Use of Proceeds                       16

Item 3.  Defaults Upon Senior Securities                                 16

Item 4.  Submission of Matters to a Vote of Security Holders             16

Item 5.  Other Information                                               16

Item 6.  Exhibits and reports on Form 8-K                                16

Signatures                                                               17

Exhibits                                                                 18



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 affect of those  events or  circumstances  on any of the  forward-looking
statements contained in this report.

                    PART I FINANCIAL INFORMATION

Item 1.  Financial Statements

The unaudited  financial  statements of Chugach for the quarter ended  September
30, 2000 follow:


<PAGE>


                CHUGACH ELECTRIC ASSOCIATION, INC.

                        Balance Sheets

                           Assets
<TABLE>

                                                                  September 30, 2000               December 31, 1999
                                                                  ------------------               -----------------
                                                                      (Unaudited)
<S>                                                                    <C>                             <C>

Utility plant:
     Electric plant in service                                         $ 648,797,612                   $ 641,627,328
     Construction work in progress                                        70,584,581                      47,257,296
                                                                        ------------                    ------------
                                                                         719,382,193                     688,884,624
     Less accumulated depreciation                                       259,870,408                     243,082,832
                                                                        ------------                    ------------
                     Net utility plant                                   459,511,785                     445,801,792
                                                                        ------------                    ------------
Other property and investments, at cost:

     Nonutility property                                                     480,918                         413,515
     Investments in associated organizations                               8,990,917                       8,946,861
                                                                        ------------                    ------------
                                                                           9,471,835                       9,360,376
                                                                        ------------                    ------------
Current assets:
     Cash and cash equivalents                                                     0                       4,110,030
     Cash - restricted construction funds                                    402,044                         538,404
     Special deposits                                                        182,164                         182,164
     Accounts receivable, net                                             13,962,578                      17,911,749
     Materials and supplies, at average cost                              17,506,323                      17,180,136
     Prepayments                                                           1,313,140                         861,947
     Other current assets                                                    363,441                         341,702
                                                                        ------------                    ------------
                   Total current assets                                   33,729,690                      41,126,132
                                                                        ------------                    ------------
Deferred charges                                                          21,587,117                      22,067,237
                                                                        ------------                    ------------
                                                                        $524,300,427                    $518,355,537
                                                                        ============                    ============

</TABLE>




See accompanying notes to unaudited financial statements.

                CHUGACH ELECTRIC ASSOCIATION, INC.

                        Balance Sheets

                   Liabilities and Equities
<TABLE>

                                                                    September 30, 2000             December 31, 1999
                                                                    ------------------             -----------------
                                                                         (Unaudited)
<S>                                                                       <C>                          <C>

Equities and margins:
     Memberships                                                          $    996,893                 $     960,808
     Patronage capital                                                     123,730,266                   117,335,481
     Other                                                                   4,240,262                     4,228,356
                                                                          ------------                  ------------
                                                                           128,967,421                   122,524,645
                                                                          ------------                  ------------
Long-term obligations, excluding current Installments:

     First mortgage bonds payable                                          169,542,000                   194,139,000
     National Bank for Cooperatives bonds

       Payable                                                             142,677,945                   143,011,295
                                                                          ------------                  ------------
                                                                           312,219,945                   337,150,295
                                                                          ------------                  ------------
Current liabilities:
     Bank Overdraft                                                          1,758,843                             0
     Notes payable                                                          33,966,659                             0
     Current installments of long-term debt                                  6,430,350                     6,372,405
     Accounts payable                                                        4,668,223                     9,508,851
     Consumer deposits                                                       1,169,403                     1,059,677
     Accrued interest                                                        1,685,768                     6,066,114
     Salaries, wages and benefits                                            4,592,737                     4,053,228
     Fuel                                                                    5,453,518                     4,381,304
     Other                                                                   1,950,339                     2,527,798
                                                                          ------------                  ------------
                  Total current liabilities                                 61,675,840                    33,969,377
                                                                          ------------                  ------------
Deferred credits                                                            21,437,221                    24,711,220
                                                                          ------------                  ------------
                                                                          $524,300,427                  $518,355,537
                                                                          ============                  ============

</TABLE>

See accompanying notes to unaudited financial statements.


<PAGE>


                CHUGACH ELECTRIC ASSOCIATION, INC.

    Statements of Revenues, Expenses and Patronage Capital
<TABLE>


                                              Three months ended September 30       Nine months ended September 30
                                              -------------------------------       ------------------------------
                                                  2000                  1999                2000                  1999

                                              (Unaudited)                                (Unaudited)
<S>                                           <C>                   <C>                 <C>                  <C>

Operating Revenue                             $ 37,201,515          $ 32,075,076        $ 114,258,272        $ 103,807,293
                                              ------------          ------------        -------------        -------------

Operating Expenses:
    Production                                  12,890,904             9,384,454           36,257,283           29,383,994

    Purchased power                              2,456,575             2,205,731            7,072,014            5,962,379

    Transmission                                   949,998               754,449            2,491,633            2,416,893

    Distribution                                 2,574,665             2,343,063            7,521,075            6,575,734

    Consumer Accounts                            1,247,316             1,178,644            3,995,952            3,385,068

    Sales Expense                                  289,372               228,185              817,221              947,180

    Administrative, general and other            5,035,824             5,460,297           14,743,566           15,793,370

    Depreciation and amortization                5,747,653             4,608,949           17,180,273           15,354,973
                                                 ---------             ---------           ----------           ----------
            Total operating expenses            31,192,307            26,163,772           90,079,017           79,819,591
                                                ----------            ----------           ----------           ----------

Interest:
    On long-term debt                            6,245,878             6,081,895           18,956,861           17,985,345

    Other                                          549,767               231,958            1,083,306              589,453

    Charged to construction-credit               (717,281)             (407,860)          (1,706,470)            (588,390)
                                                 ---------             ---------          -----------            ---------
            Net interest expense                 6,078,364             5,905,993           18,333,697           17,986,408
                                                 ---------             ---------           ----------           ----------

            Net operating margins                 (69,156)                 5,311            5,845,558            6,001,295
                                                  --------                 -----            ---------            ---------

Nonoperating margins:
    Interest income                                123,217               139,152              513,235              438,905

    Other                                           97,044                59,954              323,536               85,913
                                                    ------                ------              -------               ------
            Total nonoperating margins             220,261               199,106              836,771              524,818
                                                   -------               -------              -------              -------

            Assignable margins                     151,105               204,417            6,682,329            6,526,113

Patronage  capital  at  beginning  of          123,726,878           115,870,695          117,335,481          109,622,996
period

Retirement  of  capital  credits  and            (147,717)              (10,086)            (287,544)             (84,083)
estate payments                                  ---------              --------            ---------             --------

Patronage capital at end of period           $ 123,730,266         $ 116,065,026        $ 123,730,266        $ 116,065,026
                                             =============         =============        =============        =============
</TABLE>

See accompanying notes to unaudited financial statements.


<PAGE>


                    CHUGACH ELECTRIC ASSOCIATION, INC.

                       Statements of Cash Flows
<TABLE>

                                                                             Nine months ended September 30
                                                                             ------------------------------
                                                                               2000                     1999
                                                                               ----                     ----
                                                                           (Unaudited)
<S>                                                                        <C>                      <C>

Cash flows from operating activities:

Assignable margins                                                         $   6,682,329            $   6,526,113
                                                                             -----------              -----------
Adjustments to reconcile assignable margins to net cash
provided by operating activities:
        Depreciation and amortization                                         17,180,273               15,354,973
       Changes in assets and liabilities:
         (Increase) decrease in assets:
        Accounts receivable                                                    3,949,171                5,065,400
        Prepayments                                                             (451,193)                (649,504)
        Materials and supplies                                                  (326,189)              (1,284,489)
        Deferred charges                                                         480,120               (6,683,954)
        Other                                                                     47,219                 (332,357)
     Increase (decrease) in liabilities:
         Accounts payable                                                     (4,840,628)              (1,720,721)
         Consumer deposits                                                       109,726                   12,658
         Accrued interest                                                     (4,380,345)              (5,279,871)
         Deferred credits                                                     (3,273,999)              (4,042,999)
         Other                                                                 1,034,264               (2,055,475)
                                                                             -----------              -----------
               Net cash provided (used) by operating activities               16,210,748                4,909,774
Cash flows from investing activities:
   Extension and replacement of plant                                        (30,890,266)             (30,369,637)
   Investments in associated organizations                                       (44,056)                   4,503
                                                                             -----------              -----------
               Net cash used in investing activities                         (30,934,322)             (30,365,134)
                                                                             -----------              -----------
Cash flows from financing activities:
   Net change in bank overdraft                                                1,758,843                        0
   Short-term borrowings, net                                                 33,966,659               25,000,000
   Net proceeds (repayments) of long-term debt                               (24,872,405)               1,516,199
   Retirement of patronage capital                                              (287,544)                 (84,083)
   Other                                                                          47,991                  301,513
                                                                             -----------               ----------
              Net cash provided by financing activities                       10,613,544               26,733,629
                                                                             -----------               ----------
              Net increase in cash and cash equivalents                       (4,110,030)               1,278,269

Cash and cash equivalents at beginning of period                               4,110,030                2,312,574
                                                                             -----------               ----------
Cash and cash equivalents at end of period                                            $0               $3,590,843
                                                                             ===========               ==========
</TABLE>

See accompanying notes to unaudited financial statements.


<PAGE>






                       CHUGACH ELECTRIC ASSOCIATION, INC.

                        Notes to Financial Statements

                             SEPTEMBER 30, 2000

                                (Unaudited)

1.   Presentation of Financial Information

     During interim periods,  Chugach follows the accounting  policies set forth
     in its audited  financial  statements  included in Form 10-K filed with the
     Securities and Exchange Commission.  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 to a fair statement of the results for the
     interim period presented.

2.   Lines of Credit

     Chugach  maintains a line of credit of $35 million with  National  Bank for
     Cooperatives  (CoBank).  The CoBank line of credit  expires August 1, 2001,
     but carries an annual  automatic  renewal  clause.  At September  30, 2000,
     $33.9  million  was  outstanding  on  this  line  of  credit,  however,  an
     additional  $1.1  million was  acquired on October 10,  2000.  This line of
     credit, as of November 2000,  carried an interest rate of 8.15%.  There was
     an amendment to the Line of Credit  Agreement  between Chugach and National
     Bank for  Cooperatives,  dated  September  13, 2000 and signed  November 2,
     2000,  which added the CoBank's  Weekly Quoted Variable Rate as an interest
     rate option available to the line of credit.  In addition,  the Association
     has an annual line of credit of $50 million available at the National Rural
     Utilities  Cooperative Finance Corporation (NRUCFC). At September 30, 2000,
     there was no  outstanding  balance  on this  line of  credit,  however,  $5
     million  was  acquired  on October  11,  2000.  This line of credit,  as of
     November  2000,  carried an  interest  rate of 8.550%.  The NRUCFC  line of
     credit expires October 14, 2002.

3.   Segment Reporting

      Chugach has adopted the Financial Accounting Standards Board Statement No.
     131,  Disclosures About Segments of an Enterprise and Related  Information,
     which  establishes  standards for reporting  information  about a company's
     operating  segments.  The  Association  had divided its operations into two
     reportable  segments:  Energy and  Internet  service.  The  energy  segment
     derives its revenues from sales of electricity to  residential,  commercial
     and wholesale  customers,  while the Internet  segment derives its revenues
     from  provision  of  residential  and  commercial   internet  services  and
     products.  The reporting segments follow the same accounting  policies used
     for the Association's  financial statements and is described in the summary
     of  significant  accounting  policies.  Management  evaluates  a  segment's
     performance based upon profit or loss from operations.  Jointly used assets
     are  allocated by  percentage  of  reportable  segment  usage and centrally
     incurred  costs are allocated  using factors  developed by the  Association
     that are patterned upon usage.

      The Internet  segment received  approval to begin operations  during 1998,
     the results of which are  immaterial  to the financial  statements  because
     actual  operations  didn't commence until February 1999. The following is a
     tabulation of business segment information year to date as of September 30,
     2000:

             Operating Revenues

             Internet                                                   $866,092
             Energy                                                 $113,392,180
                                                                    ------------
               Total operating revenues                             $114,258,272
                                                                    ============
             Assignable Margins

             Internet                                                $  -855,783
             Energy                                                   $7,538,112
                                                                      ----------
               Total assignable margins                               $6,682,329
                                                                      ==========
             Assets

             Internet                                                   $613,145
             Energy                                                 $523,687,282
                                                                    ------------
               Total assets                                         $524,300,427
                                                                    ============
             Capital Expenditures

             Internet                                                    $25,000
             Energy                                                  $32,540,358
                                                                     -----------
               Total capital expenditures                            $32,565,358
                                                                     ===========



<PAGE>


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

                             (Unaudited)

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

For certain information concerning a Treasury rate-lock transaction entered into
by Chugach in March 1999,  reference is made to information  appearing under the
caption "Additional  Information Regarding Treasury Rate-Lock" in Item 5 of Part
II of this report.

RESULTS OF OPERATIONS

Current Year Quarter Versus Prior Year Quarter

Operating revenues,  which include sales of electric energy to retail, wholesale
and economy energy customers and other miscellaneous revenues,  increased by 16%
for the quarter  ended  September 30, 2000,  over the same quarter in 1999.  The
increase in revenues is primarily attributable to higher economy energy sales to
Golden Valley Electric  Association,  Inc. (GVEA) because of the shutdown of the
Healy Clean Coal Plant (HCCP) that commenced in late 1999 and has continued into
2000.  This  shutdown has made it  economical  and feasible for GVEA to purchase
much of their energy  requirements  from Chugach,  as it is more  economical for
GVEA to purchase energy than to generate it themselves.

Retail  demand and energy  rates did not change  from the third  quarter of 2000
compared to the third quarter of 1999. Wholesale demand and energy rates charged
to Homer Electric  Association (HEA), and Matanuska Electric  Association (MEA),
declined 0.70 percent and 0.80 percent, respectively, from third quarter 1999 to
third quarter 2000.

In June of 2000, the Regulatory Commission of Alaska issued a final order on the
1996 test year  revenue  requirement  filing.  As a result of this order,  which
resolved  contested issues in the 1996 test year, and pursuant to the Settlement
Agreement with Alaska Electric  Generation & Transmission  Cooperative  (AEG&T),
Chugach  issued  refunds to AEG&T  members HEA and MEA in the amount of $332,157
and $503,272,  respectively,  on July 25, 2000.  Consistent  with the Settlement
Agreement,  these refunds were based on demand and energy purchases  retroactive
to January 1, 1997. These refunds were in addition to the refunds issued earlier
this year by Chugach in the amounts of $86,132 to HEA and $1,809,801 to MEA that
represented  uncontested  amounts from the 1996 test year filing. As a result of
the final order on the 1996 test year, wholesale demand and energy rates charged
to HEA and MEA decreased 0.70 percent and 0.80 percent, respectively,  effective
on the August 2000 wholesale power bills.

A provision for wholesale  rate refunds were  recorded in 1997,  1998,  1999 and
2000, which totaled $2,651,361,  to accommodate the refunds to AEG&T members HEA
and MEA discussed above.

Power  Production and Purchased  Power expense  increased from the third quarter
1999 to the third  quarter 2000 due to an increase in fuel prices.  Transmission
expense  increased and  Distribution  Maintenance  expense  decreased from third
quarter 1999 to third  quarter 2000,  due to a shift in line  clearing  activity
focus from distribution in 1999 to transmission in 2000. Distribution Operations
and Consumer  Accounts  expense  increased  from the third quarter 1999 to third
quarter 2000 due to an update to the clearing  process for information  services
and garage  expenses.  This update  shifted  costs from the  Administrative  and
General expense financial  category to more appropriate  functional areas of the
company.  This  contributed  to the decrease  from the third quarter 1999 to the
third  quarter  2000  in  administrative  and  general  expense.  Sales  expense
increased slightly in this period, compared to the same period last year, due to
additional  advertising  expense  related to new  customer  convenience  service
promotions.  Depreciation  expense  increased,  from third quarter 1999 to third
quarter 2000, due to additional plant put into service during that time.

Interest on long-term  debt  increased  in the third  quarter 2000 over the same
period last year as a result of the issuance of CoBank 7 bond in December  1999,
as well as higher  interest rates in 2000,  which affect the long-term debt that
carry variable  interest rates.  Interest  Charged to Construction and Allowance
for Funds Used During Construction (AFUDC) were higher in the third quarter 2000
due to  significantly  higher  Construction  Work in  Progress  (CWIP)  balances
compared to the third  quarter 1999.  Other  Interest  expense  increased in the
third  quarter  2000 as  compared  to the same  period in 1999 due to  increased
activity  in the line of credit to fund the Beluga Unit 6  re-powering  project,
the Cooper Lake overhaul  project and as a result of the debt-  service  payment
made in mid September.

Financial Condition

Total assets  increased by 1% from December 31, 1999, to September 30, 2000. The
increase was due to an increase in electric  plant in service and CWIP,  related
to the  re-powering  of Beluga Units 6 & 7 and the Cooper Lake  overhaul.  This,
however,  was offset by a decrease  in cash and cash  equivalents  caused by the
funding  requirements  to the  above-mentioned  projects  and  the  decrease  of
accounts  receivable.  The  decrease  in accounts  receivable  was caused by the
payment of wholesale  power bills that were accrued but not paid by December 31,
1999, and the  over-collection of the fuel surcharge in the past quarter.  There
was also an increase in  prepayments  due to the annual payment of the corporate
insurance premium.  Notable changes to total liabilities include the increase in
notes payable due to borrowing activity in the first,  second and third quarter,
as  well  as  the  increase  in  bank  overdraft  due  to  the  capital  funding
requirements  needed to fund the Beluga Unit 6  re-powering  and the Cooper Lake
overhaul.  This was offset by a decrease in accounts payable.  There was also an
increase in accrued  salaries,  wages and benefits  due to overall  increases in
company-wide  benefits,  as well as increases associated with new contracts with
the International  Brotherhood of Electrical Workers (IBEW).  Additionally,  the
fuel  liability  increased  due to  rising  fuel  prices  and  accrued  interest
decreased as a result of the September semi-annual bond payment.

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, 2000,
there was no balance  outstanding with NRUCFC,  however, $5 million was acquired
on October 11, 2000.  This line of credit  carried an interest rate of 8.550% as
of  November  2000.  As of the same date,  $33.9  million was  outstanding  with
CoBank,  however,  an additional  $1.1 million was acquired on October 10, 2000.
This line of credit carried an interest rate of 8.15% as of November 2000.

Capital  construction  in 2000 is estimated at $34.2  million.  At September 30,
2000,  approximately  $32.57  million  has been  expended.  Capital  improvement
expenditures  are  expected  to  decrease  in  the  fourth  quarter  due  to the
construction season winding down.

Chugach  currently  has no  limit on  supplemental  indentures  that  facilitate
borrowing from CoBank. At September 30, 2000, Chugach had bonds in the amount of
$143  million  outstanding  under this  financing  arrangement.  The  balance is
comprised of a $511  thousand  bond (CoBank 1) which carries an interest rate of
8.95%  maturing in 2002,  a $10 million  bond  (CoBank 2) priced at 7.76% due in
2005, a $21.5  million bond (CoBank 3),  priced at 5.60%,  a $23.5  million bond
(CoBank 4) priced at 5.60%, a $15 million bond (CoBank 5) priced at 5.60% due in
2002,  2007 and 2012,  a $42.5  million  bond  (CoBank  6)  carrying  a variable
interest rate currently  priced at 8.15% (as of November 2000) and a $30 million
bond (CoBank 7) carrying a variable  interest rate currently priced at 8.15% (as
of November 2000) both due in March,  2002.  Principal  payments on the CoBank 3
and 4 bonds commence in 2003 and continue  through 2022.  Additionally,  Chugach
has negotiated a similar supplemental indenture (Fifth Supplemental Indenture of
Trust) with NRUCFC for $80 million. At September 30, 2000, there were no amounts
outstanding under this financing arrangement.

As  previously  reported,  Chugach has acquired and retired $97.7 million of its
Series A 2022 bonds on the open market.

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 2000 and thereafter.

Changes in Accounting Principles

Chugach is  required to implement  Statement of Financial  Accounting  Standards
No.  133,   Accounting   for   Derivative   Instruments  and Hedging  Activities
(SFAS No. 133),   effective   January 1,  2001. Due  to  the  interest rate risk
inherent  in  the  existing   treasury  rate  lock,  Chugach   cannot  currently
determine  the impact  of   implementation   of  SFAS No.  133  on its financial
condition or its results of operations.


<PAGE>


OUTLOOK

Nationwide,  the electric  utility industry is entering a period of competition.
Although  there have been  obstacles to overcome,  Chugach  still  believes that
electric  utilities  in  Alaska  will not be  immune  from  competitive  forces,
however,  the  competitive  marketplace  seems more  distant,  as there has been
little to no movement in that direction. Nevertheless, Chugach has taken several
steps to more  effectively  position the organization to meet the challenge of a
competitive market for electricity.

Chugach has been active at the Alaska  Legislature  in support of the customer's
right to choose their electric power supplier.  Virtually all Alaskan  utilities
are opposing Chugach's efforts to develop competition.

Chugach operates with three divisions:  Finance and Energy Supply,  Transmission
and Distribution Network Services,  and Retail Services.  Chugach operates a key
account  program for larger  customers and has developed new services to enhance
existing customers' satisfaction.

Chugach  commenced  operation as an internet  service provider in February 1999.
Also in 1999, Chugach began selling microwave bandwidth to industrial customers.

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.

Environmental Matters

Chugach  discovered  polychlorinated  biphenyls  (PCB's) in paint,  caulking and
greases  at the Cooper  Lake  Hydroelectric  plant  during  initial  phases of a
turbine  overhaul.  Chugach has worked with the Federal Energy Regulatory Agency
(FERC)  and the  Environmental  Protection  Agency  (EPA) to  devise a method of
dealing with the  contamination  and is conducting the  appropriate  mitigation.
Meanwhile, the overhaul is continuing.

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 its business,  Chugach  manages its
exposure to these risks as described  below.  Chugach does not engage in trading
market risk sensitive instruments for speculative purposes.

Interest rate risk - As of September  30, 2000,  except for CoBank 6 and 7 which
carry  variable  interest  rates  that  are  periodically  repriced,   Chugach's
outstanding  borrowings  were at  fixed  interest  rates.  The  following  table
provides information regarding cash flows (dollars in thousands):

<TABLE>
<S>                           <C>      <C>        <C>       <C>        <C>      <C>             <C>         <C>

                                                                                                              Fair

                               2001      2002      2003       2004      2005    Thereafter       Total        Value
                               ----      ----      ----       ----      ----    ----------       -----        -----
Long-term debt, including
current portion               $6,430   $82,910    $5,907    $6,447     $17,036   $199,920       $318,650    $329,902
</TABLE>

Commodity  price risk - Chugach's gas contracts  provide for  adjustments to gas
prices based on fluctuations of certain  commodity prices and indices.  Fuel and
purchased  power costs are passed  directly to  Chugach's  wholesale  and retail
customers  through a fuel  surcharge.  Fluctuations  in the  price  paid for gas
pursuant  to  long-term  gas supply  contracts  and changes in  purchased  power
expense levels do not normally  impact  margins.  The fuel  surcharge  mechanism
mitigates the commodity  price risk related to market  fluctuations in the price
of natural gas.


<PAGE>


                            PART II OTHER INFORMATION

Item 1.  Legal Proceedings

Chugach Electric Association, Inc., v. Matanuska Electric Association, Inc.,
3AN-99-10830 CI
--------------------------------------------------------------------------------

For  additional  information,  refer to the discussion of this matter in Part I,
Item 3 - Legal  Proceedings  -  LITIGATION -  3AN-99-10830  CI, of the Form 10-K
filed by  Chugach  with  respect to the  annual  report  for the  period  ending
December  31,  1999,  and Part II, Item 1 - Legal  Proceedings  of the Form 10-Q
filed by Chugach for the period  ending  March 31, 2000,  and June 30, 2000.  No
material changes have occurred since the last report on this matter.

Chugach Electric Association, Inc., v. Alaska Public Utilities Commission,
3AN-98-11548 CI
--------------------------------------------------------------------------------

For  additional  information,  refer to the discussion of this matter in Part I,
Item 1 -  Business  - GENERAL -  Competition,  of the Form 10-K filed by Chugach
with respect to the annual report for the period ending  December 31, 1999,  and
Part II,  Item 1 - Legal  Proceedings  of the Form 10-Q filed by Chugach for the
period  ending  March 31,  2000,  and June 30,  2000.  No material  changes have
occurred since the last report on this matter.

Matanuska Electric Association, Inc., v. Chugach Electric Association, Inc.,
3AN-99-8152 CI
--------------------------------------------------------------------------------

For  additional  information,  refer to the discussion of this matter in Part I,
Item 3 - Legal Proceedings - LITIGATION - 3AN-99-8152CI,  of the Form 10-K filed
by Chugach with respect to the annual report for the period ending  December 31,
1999. No material changes have occurred since the last report on this matter.

In the Matter of the Investigation into the Rates Changes Implemented by Chugach
Electric  Association,  Inc.,  under TA 1718  (U-96-37) and In the Matter of the
Tariff Revision,  Designated as TA 195-8 by Chugach Electric Association,  Inc.,
To Decrease the Wholesale Demand and Energy Rates of Homer Electric Association,
Inc.,  and  Matanuska  Electric  Association,  Inc.,  (U-99-78)  For  additional
information,  refer to the  discussion  of this matter in Item 2 -  Management's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations -
RESULTS OF OPERATIONS - Current Year Quarter  Versus Prior Year Quarter,  of the
Form 10-Q filed by Chugach for the period ending June 30, 2000.  The parties and
the RCA are in the  process  of  reviewing  the  1997  and  1998  Test  Years to
determine  any refund  amounts,  which may  result  from  review of the  revenue
requirements for each of these Test Years.  Chugach does not anticipate  refunds
to be material for these Test Years.

Chugach Electric Association, Inc., v. Alaska Public Utilities Commission ,
Case No. 3AN 98-9775 CI
--------------------------------------------------------------------------------
For  additional  information,  refer to the discussion of this matter in Part I,
Item 1 - Business - GENERAL - Rate  Regulation and Rates, of the Form 10-K filed
by Chugach with respect to the annual report for the period ending  December 31,
1999, and Part II, Item 1 - Legal  Proceedings of the Form 10-Q filed by Chugach
for the period ending June 30, 2000.  The matter has been appealed to the Alaska
Supreme Court by the appellee, Matanuska Electric Association,  Inc., but not by
the Commission.

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

Item 5.  Other Information

Additional Information Regarding Treasury Rate-Lock

On March 17, 1999,  Chugach entered into a Treasury  rate-lock  transaction with
Lehman Brothers  Financial  Products Inc.  (Lehman  Brothers) for the purpose of
taking   advantage  of  favorable  market  interest  rates  in  anticipation  of
refinancing  Chugach's  Series A Bonds due 2022 on their  first call date (March
15, 2002). As of September 30, 2000, the aggregate  principal amount of Series A
Bonds due 2022 was $164,310,000.  Under the Treasury rate-lock contract, Chugach
will receive a lump-sum  payment from Lehman  Brothers on March 15, 2002, if the
yield on 10- or  30-year  Treasury  bonds as of  mid-February,  2002,  exceeds a
specified  target level (5.653% and 5.838%,  respectively).  Conversely,  on the
same date,  Chugach will be required to make a payment to Lehman Brothers if the
yield on the 10- or 30-year  Treasury bonds falls below its stated target yield.
The treasury rate lock  agreement had a yield to maturity  value on November 13,
2000, that approximated $1,465,471.

Item 6. Exhibits and Reports on Form 8-K

     (a) Exhibits:

         Financial Data Schedule

     (b) Reports on Form 8-K:

         No reports on Form 8-K were filed for the quarter  ended  September 30,
         2000.


<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/Eugene N. Bjornstad
                                  Eugene N. Bjornstad, General Manager


                          Date:   November 13, 2000

                          By:     /s/Evan J. Griffith
                                  Evan J. Griffith
                                  Executive Manager, Finance & Energy Supply

                          Date:   November 13, 2000


<PAGE>


EXHIBITS

Listed below are the exhibits which are filed as part of this Report:

Exhibit

Number                  Description                                         Page
10.52.5  Amendment to Line of Credit Agreement between Chugach
         and National Bank for Cooperatives (thirty-five million)
         dated September 13, 2000                                            19


27       Financial Data Schedule                                             **