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         June 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 AUGUST 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, June 30, 2000 (Unaudited) and December 31, 1999           4

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

Statements of Cash Flows, Three Months Ended June 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                                               17

Item 6.  Exhibits and reports on Form 8-K                                17

Signatures                                                               18

Exhibits                                                                 19


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 June 30,
2000 follow:


<PAGE>


                     CHUGACH ELECTRIC ASSOCIATION, INC.

                             Balance Sheets

                                Assets
<TABLE>

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

Utility plant:
     Electric plant in service                                         $ 645,971,570                 $ 641,627,328
     Construction work in progress                                        62,008,071                    47,257,296
                                                                        ------------                  ------------
                                                                         707,979,641                   688,884,624
     Less accumulated depreciation                                       254,860,769                   243,082,832
                                                                        ------------                  ------------
                     Net utility plant                                   453,118,872                   445,801,792
                                                                        ------------                  ------------
Other property and investments, at cost:

     Nonutility property                                                     492,239                       413,515
     Investments in associated organizations                               8,985,568                     8,946,861
                                                                        ------------                  ------------
                                                                           9,477,807                     9,360,376
                                                                        ------------                  ------------
Current assets:
     Cash and cash equivalents                                             2,816,607                     4,110,030
     Cash - restricted construction funds                                    507,774                       538,404
     Special deposits                                                        182,164                       182,164
     Accounts receivable, net                                             12,679,020                    17,911,749
     Materials and supplies, at average cost                              17,065,728                    17,180,136
     Prepayments                                                           1,045,157                       861,947
     Other current assets                                                    235,599                       341,702
                                                                       -------------                 -------------
                   Total current assets                                   34,532,049                    41,126,132
                                                                        ------------                  ------------
Deferred charges                                                          21,803,421                    22,067,237
                                                                        ------------                  ------------
                                                                        $518,932,149                  $518,355,537
                                                                        ============                  ============




</TABLE>

See accompanying notes to unaudited financial statements.

                    CHUGACH ELECTRIC ASSOCIATION, INC.

                             Balance Sheets

                        Liabilities and Equities
<TABLE>

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

Equities and margins:
     Memberships                                                          $    981,978               $     960,808
     Patronage capital                                                     123,726,878                 117,335,481
     Other                                                                   4,245,740                   4,228,356
                                                                          ------------                ------------
                                                                           128,954,596                 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                                                             142,848,267                 143,011,295
                                                                          ------------                ------------
                                                                           312,390,267                 337,150,295
                                                                          ------------                ------------
Current liabilities:
     Notes payable                                                          26,000,000                       -
     Current installments of long-term debt                                  6,416,071                   6,372,405
     Accounts payable                                                        5,329,512                   9,508,851
     Consumer deposits                                                       1,106,987                   1,059,677
     Accrued interest                                                        5,628,356                   6,066,114
     Salaries, wages and benefits                                            4,469,446                   4,053,228
     Fuel                                                                    4,539,593                   4,381,304
     Other                                                                   2,212,315                   2,527,798
                                                                          ------------                ------------
                  Total current liabilities                                 55,702,280                  33,969,377
                                                                          ------------                ------------
Deferred credits                                                            21,885,006                  24,711,220
                                                                          ------------                ------------
                                                                          $518,932,149                $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 June 30                 Six months ended June 30
                                                  --------------------------                 ------------------------
                                                  2000                  1999                 2000                 1999
                                               (Unaudited)                                (Unaudited)
<S>                                           <C>                   <C>                  <C>                  <C>

Operating Revenue                             $ 36,185,683          $ 32,307,980         $ 77,056,757         $ 71,732,217
                                              ------------          ------------         ------------         ------------

Operating Expenses:
    Production                                  11,752,363             9,236,413           23,366,379           19,999,540

    Purchased power                              2,188,159             1,888,126            4,615,439            3,756,648

    Transmission                                   571,900               989,950            1,541,635            1,662,444

    Distribution                                 2,088,968             2,218,302            4,946,410            4,232,671

    Consumer Accounts                            1,461,881             1,177,678            2,748,636            2,206,424

    Sales Expense                                  252,090               371,758              527,850              718,995

    Administrative, general and other            5,188,626             5,577,579            9,707,742           10,333,073

    Depreciation and amortization                5,679,268             5,574,140           11,432,620           10,746,024
                                                 ---------             ---------           ----------           ----------
            Total operating expenses            29,183,255            27,033,946           58,886,711           53,655,819
                                                ----------            ----------           ----------           ----------

Interest:
    On long-term debt                            6,201,277             5,977,506           12,710,982           11,903,449

    Other                                          472,679               147,425              533,539              357,495

    Charged to construction-credit               (559,485)             (175,925)            (989,189)            (180,530)
                                                 ---------             ---------            ---------            ---------
            Net interest expense                 6,114,471             5,949,006           12,255,332           12,080,414
                                                 ---------             ---------           ----------           ----------

            Net operating margins                  887,957             (674,972)            5,914,714            5,995,984
                                                   -------             ---------            ---------            ---------

Nonoperating margins:
    Interest income                                198,181               153,403              390,018              299,753

    Other                                           68,993                16,974              226,492               25,959
                                                    ------                ------              -------               ------
            Total nonoperating margins             267,174               170,377              616,510              325,712
                                                   -------               -------              -------              -------

            Assignable margins                   1,155,131             (504,595)            6,531,224            6,321,696

Patronage  capital  at  beginning  of          122,653,143           116,435,644          117,335,481          109,622,996
period

Retirement  of  capital  credits  and             (81,396)              (60,354)            (139,827)             (73,997)
estate payments                                   --------              --------            ---------             --------

Patronage capital at end of period           $ 123,726,878         $ 115,870,695        $ 123,726,878        $ 115,870,695
                                             =============         =============        =============        =============
</TABLE>

See accompanying notes to unaudited financial statements.


<PAGE>


                    CHUGACH ELECTRIC ASSOCIATION, INC.

                         Statements of Cash Flows
<TABLE>
                                                                                    Six months ended June 30
                                                                                    ------------------------
                                                                                 2000                     1999
                                                                                 ----                     ----
                                                                                         (Unaudited)
<S>                                                                        <C>                      <C>

Cash flows from operating activities:

Assignable margins                                                         $   6,531,224            $   6,321,696
                                                                            ------------             ------------
Adjustments to reconcile assignable margins to net cash
provided (used) by operating activities:
        Depreciation and amortization                                         11,432,620               10,746,024
        Changes in assets and liabilities:
        (Increase) decrease in assets:
        Accounts receivable                                                    5,232,729                6,795,909
        Prepayments                                                             (183,210)                (365,965)
        Materials and supplies                                                   114,407               (1,621,920)
        Deferred charges                                                         263,816              (11,661,607)
        Other                                                                     58,009                 (114,060)
     Increase (decrease) in liabilities:
         Accounts payable                                                     (4,179,339)              (1,435,328)
         Consumer deposits                                                        47,310                   59,428
         Accrued interest                                                       (437,758)                (833,417)
         Deferred credits                                                     (2,826,214)              (3,901,030)
         Other                                                                   259,024               (1,885,143)
                                                                              ----------              -----------
               Net cash provided (used) by operating activities               16,312,618                2,104,587

Cash flows from investing activities:
   Extension and replacement of plant                                        (18,749,700)              (7,559,242)
   Investments in associated organizations                                       (38,707)                    (917)
                                                                         ----------------            -------------
               Net cash used in investing activities                         (18,788,407)              (7,560,159)
                                                                           --------------            -------------
Cash flows from financing activities:
   Short-term borrowings, net                                                 26,000,000               10,000,000
   Net proceeds and repayments of long-term debt                             (24,716,361)               1,659,162
   Retirement of patronage capital                                              (139,827)                 (73,997)
   Other                                                                          38,554                  306,213
                                                                             -----------             ------------
              Net cash provided by financing activities                        1,182,366               11,891,378
                                                                               ---------               ----------
              Net increase in cash and cash equivalents                       (1,293,423)               6,435,806

Cash and cash equivalents at beginning of period                               4,110,030                2,312,574
                                                                             -----------              -----------
Cash and cash equivalents at end of period                                    $2,816,607               $8,748,380
                                                                              ==========               ==========
</TABLE>

See accompanying notes to unaudited financial statements.


<PAGE>





                       CHUGACH ELECTRIC ASSOCIATION, INC.

                         Notes to Financial Statements

                                 JUNE 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.

     Certain  reclassifications  have been made to the 1999 financial statements
     to conform to the 2000 presentation.

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 September 1, 2000,
     but carries an annual  automatic  renewal  clause.  At June 30,  2000,  $26
     million  was  outstanding  on this line of credit  at an  interest  rate of
     7.80%.  In addition,  the  Association  has an annual line of credit of $50
     million  available  at the National  Rural  Utilities  Cooperative  Finance
     Corporation (NRUCFC). At June 30, 2000, there was no outstanding balance on
     this line of credit. The NRUCFC line of credit expires October 14, 2002.

3.   Segment Reporting

       During 1998,  Chugach  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 began  operations  during 1998, the results of which
       are immaterial to the financial statements. The following is a tabulation
       of business segment information year to date June 30, 2000:
<TABLE>

                  Operating Revenues
<S>                                                                                    <C>

                  Internet                                                                 $623,172
                  Energy                                                                $76,433,585
                                                                                        -----------
                    Total operating revenues                                            $77,056,757
                                                                                        ===========
                  Assignable Margins

                  Internet                                                               $ -550,437
                  Energy                                                                 $7,081,661
                                                                                         ----------
                    Total assignable margins                                             $6,531,224
                                                                                         ==========
                  Assets

                  Internet                                                                 $634,368
                  Energy                                                               $518,297,781
                                                                                       ------------
                    Total assets                                                       $518,932,149
                                                                                       ============
                  Capital Expenditures

                  Internet                                                                   $3,188
                  Energy                                                                $19,350,208
                                                                                        -----------
                    Total capital expenditures                                          $19,353,396
                                                                                        ===========
</TABLE>
<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 12%
for the quarter ended June 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  event  has  reduced  the  transmission  line  congestion  north  of  Healy
permitting GVEA to purchase much of their energy requirements from Chugach.

Retail  demand and energy  rates did not change from the second  quarter of 2000
compared  to the second  quarter  of 1999.  Wholesale  demand  and energy  rates
charged to Homer Electric  Association (HEA), and Matanuska Electric Association
(MEA), declined 0.30 percent and 3.8 percent, respectively,  from second quarter
1999 to second 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,  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.  In  addition  to the above
refunds,  earlier  this  year  Chugach  issued  refunds  of  $86,132  to HEA and
$1,809,801 to MEA that represented  uncontested amounts owed consistent with 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.

Production and purchased power expense increased from the second quarter 1999 to
the second quarter 2000 due to an increase in fuel prices.  Chugach  experienced
non-routine  maintenance  costs related to storm damage during the first half of
2000 that were offset by a reimbursement  from the Federal Emergency  Management
Agency (FEMA).  This reimbursement was recorded as a reduction of the associated
expenses.  Consequently,  overall  transmission  and  distribution  expense  was
consistent with 1999.  Distribution and consumer accounts expense increased from
the second  quarter 1999 to second 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 second  quarter 1999 to the second quarter 2000 in  administrative  and
general expense.

Interest on long-term  debt  increased in the second  quarter 2000 over the same
period last year as a result of the issuance of CoBank 7 in December 1999.  This
increase  was offset by the  acquisition  on the open  market of $10  million of
Chugach's  Series A 2022 bonds in April 2000.  Interest  charged to construction
and  Allowance  for Funds Used  During  Construction  (AFUDC)  was higher in the
second quarter 2000 due to significantly  higher  Construction  Work in Progress
(CWIP)  balances  compared to the second quarter 1999.  Other  interest  expense
increased in the second  quarter  2000,  as compared to the same period in 1999,
due to  increased  activity  in the line of  credit  as a result  of a  contract
payment made on the Beluga Unit 6 upgrade project.

Financial Condition

Total assets  increased by 0.1% from  December 31, 1999,  to June 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, the Cooper  Lake  overhaul  and the
International Generating Terminal (IGT) auxiliary system upgrade. This, however,
was  offset  by a  decrease  in cash and  cash  equivalents  caused  by the same
contract payment  discussed above 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.  Notable  changes to
total  liabilities  include  the  increase  in notes  payable  due to  borrowing
activity  in the first and second  quarter.  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).

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 June 30, 2000, there was
no balance  outstanding  with  NRUCFC.  As of the same  date,  $26  million  was
outstanding with CoBank at an interest rate of 7.80%.

Capital  construction  in 2000 is estimated at $30.8 million.  At June 30, 2000,
approximately $19.35 million has been expended. Capital improvement expenditures
are expected to increase in the third quarter. Chugach currently has no limit on
supplemental indentures that facilitate borrowing from CoBank. At June 30, 2000,
Chugach  had bonds in the  amount  of  $143.1  million  outstanding  under  this
financing arrangement.  The balance is comprised of a $667 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 7.85% (as of
August 2000) and a $30 million bond (CoBank 7) carrying a variable interest rate
currently priced at 7.85% (as of August 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 June 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.
Chugach  believes  that  electric  utilities  in Alaska  will not be immune from
competitive forces. 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.

Chugach's labor  negotiations under its three collective  bargaining  agreements
with the International  Brotherhood of Electrical Workers Local 1547 (IBEW) have
concluded.  The  interest  arbitrator  issued  her final  decision,  and the new
agreements are now in effect through June 30, 2003.

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 and greases at the
Cooper Lake  Hydroelectric  plant during initial  phases of a turbine  overhaul.
Chugach is working  with the Federal  Energy  Regulatory  Agency  (FERC) and the
Environmental  Protection  Agency  (EPA) to devise a method of dealing  with the
contamination. 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 June 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

                               2000      2001      2002       2003      2004    Thereafter       Total        Value
                               ----      ----      ----       ----      ----    ----------       -----        -----
Long-term debt, including
current portion               $  156    $6,430   $82,910      $5,907    $6,447    $216,956    $318,806       $327,041
</TABLE>

Commodity  price risk - Chugach's gas contracts  provide for  adjustments to gas
prices based on fluctuations of certain commodity prices and indices.  Purchased
power costs are passed  directly to  Chugach's  wholesale  and retail  customers
through a fuel  surcharge,  therefore,  fluctuations  in the price  paid for gas
pursuant to long-term gas supply contracts does 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.

On June 22, 2000, the Superior Court held oral argument on the summary judgement
motions. The motions were taken under advisement and a decision is pending.

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. On
April 15,  2000,  the  Superior  Court ruled in favor of the State in the appeal
Chugach had  undertaken of the agency  decision  requiring  that Chugach  obtain
prior  permission  from the  Regulatory  Commission  via a request to expand its
service  territory  authorized  under its Certificate of Public  Convenience and
Necessity  before seeking to serve customers in the Anchorage  Municipal Light &
Power  ("ML&P")  service  territory.  Chugach has  appealed  the decision to the
Alaska Supreme Court, which will review the agency decision on a de novo basis.

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.

Matanuska Electric Association, Inc., v. Chugach Electric Association, Inc.,
U-98-180
--------------------------------------------------------------------------------

For  additional  information,  refer to the discussion of this matter in Part I,
Item 3 - Legal  Proceedings  - LITIGATION - U-98-180,  of the Form 10-K filed by
Chugach with  respect to the annual  report for the period  ending  December 31,
1999.  In this  action,  MEA  alleged  that  Chugach  engaged  in  "unreasonable
management  practices" in the management of the Series A Bonds. On June 6, 2000,
the  Commission  issued  an order  finding  that  good  cause  does not exist to
institute investigation,  dismissing the complaint and closing the docket on the
ground  that MEA had  failed to show good  cause for an  investigation  of their
allegations.  The time allowed for an appeal of that decision has passed without
an appeal being filed.

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.  In an
order issued in these matters dated June 26, 2000, the Regulatory  Commission of
Alaska (RCA)  approved rate  adjustments  which resulted in refunds to wholesale
customers in the amount of $835,429.  The result was  anticipated by Chugach and
refunds  were within the amounts  reserved for this  purpose.  No appeal of this
decision  was filed by any party  within  the period  allowed  for  appeal.  The
parties and the RCA are in the process of  developing a schedule for  regulatory
review of 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.  In an order dated July 27, 2000,  the  Superior  Court found in Chugach's
favor  concluding that the line loss factor used by Chugach was correct and that
the  Commission's  order  requiring  a  refund  of past  fuel  surcharges  would
constitute impermissible retroactive ratemaking.  The matter was remanded to the
Regulatory  Commission  of Alaska  for  further  action in light of the  court's
ruling.  The matter may be  appealed to the Alaska  Supreme  Court by the either
appellee (the Commission or Matanuska Electric Association, Inc.).



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 June 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 fair
value  of the  treasury  rate  lock  agreement  on July 17,  2000,  approximated
$4,949,000.

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 June 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:   August 9, 2000

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

                             Date:   August 9, 2000


<PAGE>


EXHIBITS

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

Exhibit

Number              Description                                             Page

27                  Financial Data Schedule                                   **