Document:

Exhibit 10.4.2

	
 

	
 

	
 

	

	
 

	
 

	
DEPARTMENT OF

	
 

	
COMMERCE

	
Sarah Palin, Governor 

	
COMMUNITY AND

	
Emil Notti, Commissioner 

	
ECONOMIC DEVELOPMENT

	
Kate Giard, Chairman 

	

	
Regulatory Commission of Alaska

	
 

	
 

	
 

	
 

	
 

	
 

	
April 4, 2007 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RECEIVED 

	
In reply refer to: 

	
Tariff
Section

	
 

	
 

	
File: 

	
U-06-056

	
 

	
APR 10 2007 

	
 

	
TA272-8

	
 

	
 

	
 

	
 

	
William
 R Stewart

	
REGULATORY AFFAIRS 

	
(ILLEGIBLE)

	
Chief
 Executive Officer

	
AND PRICING 

	
 

	
Chugach
 Electric Association, Inc.

	
 

	
 

	
P. O.
 Box 196300

	
 

	
 

	
Anchorage,
 Alaska 99519-6300

	
 

	
 

	
 

Dear
Mr. Stewart:

Pursuant
to Order No. 6 in Docket U-06-056, enclosed is a validated copy of the 2006 Agreement for the Sale
and Purchase of Electric Power and Energy Between Chugach Electric Association,
Inc. and the City of Seward filed by Chugach Electric Association, Inc. on January 22, 2007. In addition,
enclosed is a validated copy of Amendment No. 1 to the agreement, filed on January 22, 2007. The effective date of the
agreement and the amendment is
February 27, 2007.

Pursuant
to Order No. 7 in Docket U-06-056, enclosed is a validated copy of Tariff Sheet No. 99, filed by
Chugach Electric Association, Inc. on April 14, 2006. In addition, enclosed is a validated
copy of Attachment C to the 2006 Agreement for the Sale and Purchase of Electric
Power and Energy Between Chugach Electric Association and the City of Seward, filed on May 10, 2006. The
effective date of the tariff sheet and the attachment
is March 27, 2007.

Please
note that the phrase “Pursuant to U-06-056(6)”, the effective date and the page
number
has been added to the bottom left corner of each page of the Agreement and the Amendment. In
addition, the phrase “Pursuant to U-06-056(7)”, the effective date and the page number has
been added to the bottom left corner of Tariff Sheet No. 99 and Attachment C.

	
 

	
 

	
 

	
Sincerely,

	
 

	
 

	
 

	
REGULATORY
 COMMISSION OF ALASKA

	
 

	
 

	
 

	

	
 

	
 

	
 

	
Mary
 J. Vittone

	
 

	
Chief,
 Tariff Section

701 W. 8th Avenue, Suite 300, Anchorage, Alaska 99501-3469

Telephone: (907) 276-6222 Fax: (907)
276-0160 TTY: (907) 276-4533

Website: http://www.state.ak.us/rca/

	
 

	
 

	
Enclosures

	
 

	
Cc:

	
Marvin
 Yoder

	
 

	
Interim
 City Manager

	
 

	
City
 of Seward

	
 

	
P.O.
 Box 167

	
 

	
Seward,
 Alaska 99664

	
 

	
 

	
 

	
Tim
 Barnum

	
 

	
Manager
 of Engineering & Electric Utilities

	
 

	
City
 of Seward

	
 

	
P.O.
 Box 167

	
 

	
Seward,
 Alaska 99664

	
 

	
 

	
 

	
Andrew
 E. Hoge

	
 

	
Hartig Rhodes Hoge and
 Lekisch

	
 

	
Counsel
 for Alaska Electric and Energy Cooperative, Inc. and Homer Electric

	
 

	
Association,
 Inc.

	
 

	
717 K
 Street

	
 

	
Anchorage,
 Alaska 99501-3397

	
 

	
 

	
 

	
Donald
 W. Edwards

	
 

	
Dorsey
 & Whitney, LLP

	
 

	
Counsel
 for Chugach Electric Association, Inc.

	
 

	
1031 West
 4th Avenue, Suite 600

	
 

	
Anchorage,
 Alaska 99501

	
 

	
 

	
 

	
Dean
 D. Thompson

	
 

	
Kemppel
 Huffman & Ellis, P.C.

	
 

	
Counsel
 for City of Seward

	
 

	
255
 East Fireweed, Suite 200

	
 

	
Anchorage,
 Alaska 99503

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RCA
No.:

	
8

	
 

	
35th
 Revision

	
Sheet
 No.

	
99

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Canceling

	
 

	
 

	
APR 14 2006  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
34th
 Revision

	
Sheet
 No.

	
99

	
STATE OF ALASKA 

	
 

	
 

	
 

	
 

	
 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach
Electric Association, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

SALE FOR RESALE

	
 

	
 

	
Available to either “All Power
Requirements” or
 “Partial Requirements” Wholesale customers who have long-term special contracts with Chugach which have
 been approved by the Regulatory Commission of Alaska. Available from Chugach’s integrated transmission system at
 various points of delivery.

	
 

	
 

	
Monthly
Rates

	
 

	
 

	
 

	
Customer
Charge:

	
$  150.00

	
per
Meter

	
 

	
 

	
 

	
 

	
 

	
Energy
Charge:

	
 

	
 

	
 

	
AEG&T d/b/a
Homer Electric Assoc., Inc.

	
$0.02230

	
per
kWh

	
 

	
AEG&T d/b/a
Matanuska Electric Assoc., Inc.

	
$0.02374

	
per
kWh

	
 

	
Seward Electric
System

	
$0.00402

	
per
kWh

	
N

	
 

	
 

	
 

	
 

	
Demand
Charge:

	
 

	
 

	
 

	
AEG&T
d/b/a/ Homer Electric Assoc., Inc.

	
$      9.50

	
per
kW

	
 

	
AEG&T d/b/a
Matanuska Electric Assoc., Inc.

	
$    12.77

	
per
kW

	
 

	
Seward Electric
System

	
$      8.12

	
per
kW

	
N

	
 

	
 

	
 

	
 

	
Premium Demand
Charge:

	
 

	
 

	
 

	
AEG&T d/b/a
Homer Electric Assoc., Inc.

	
$    10.73

	
per
kW

	
 

	
 

	
 

	
 

	
 

	
Billing Demand: For
“All Requirements” consumers, the
 billing demand shall be the maximum 15-minute integrated demand in the billing month. For
 “Partial Requirements” consumers, the monthly billing demand will be the demand level
 specified in the consumer’s contract with Chugach. The premium demand charge
 will be applied
 to each kW of peak demand in excess of the contract capacity, if Chugach
 supplies the power to meet the excess demand.

	
 

	
 

	
Power Factor: The
customer will make a reasonable effort to maintain unity power
 factor. Demand charges will be adjusted
 to correct for average power factors less than 90%. Such adjustments will be
 made by increasing the measured demand 1% for each 1% by which the average
 power factor is less than 90% lagging.

	
 

	
 

	
Fuel and Purchased Power Cost
 Adjustment: In accordance with Tariff Sheet Nos. 90 – 96. a
 surcharge or credit will be applied to each billing for service rendered under
 this schedule to reflect increases or decreases in fuel and purchased power expenses.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Pursuant
to:

	
Effective:
March 27, 2007 

	
 

	
U-06-056(7)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Issued by:

	
Chugach Electric Association,
 Inc.

	
 

	
 

	
 

	
P.O. Box 196300, Anchorage,
 Alaska 99519-6300

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
Title: Interim Chief Executive Officer  

	
 

	
 

	

	
 

	
 

	
 

	
William R. Stewart

	
 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
MAY 10 2006  

	
 

	
 

	
STATE
  OF ALASKA 

  REGULATORY COMMISSION OF ALASKA

Attachment C 

(Corrected)

Rates During Initial Agreement Period

Effective June 1, 2006, Seward’s rates shall be as
follows:

	
 

	
 

	
 

	
Customer Charge:

	
 

	
$150 per month per meter
  

	
 

	
 

	
 

	
Demand Charge:

	
 

	
$8.12 per kW per month 

	
 

	
 

	
 

	
Energy Charge:

	
 

	
$0.00402 per kWh 

	
 

	
 

	
 

	
Fuel Charge:

	
 

	
Actual fuel and purchased power expense. This amount
  will be billed on a lagging basis. For example, a January invoice will
  include actual fuel and purchased power
  expenses incurred for the energy used in the month of November. 

These rates are subject to change
in any rate proceeding before the Regulatory Commission of Alaska
consistent with Section 4 of this Agreement.

(This corrected Attachment C is acknowledged and
initialed by the parties below)

	
 

	
 

	

	
4-20-06

	

	
 

	

	
 

	

	
 

	
 

	
 

	
Pursuant to: 

  U-06-056(7)

	
Effective: 

  March 27, 2007 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
STATE
  OF ALASKA 

  REGULATORY COMMISSION OF ALASKA

AMENDMENT NO. 1

to the

2006 AGREEMENT FOR THE SALE AND PURCHASE

OF ELECTRIC POWER AND ENERGY between 

CHUGACH ELECTRIC ASSOCIATION, INC., and the CITY OF SEWARD

          WHEREAS,
in Order No. U-06-56(5), the Regulatory Commission of Alaska (“Commission”)
approved the 2006 Agreement for the Sale and Purchase of Electric Power and Energy between Chugach Electric Association,
Inc., and the City of Seward (“Contract”) as modified by the Stipulation of the
Parties Regarding Revision and Approval of Contract (“Stipulation”) filed with the Commission on
November 27, 2006;

          WHEREAS,
the Commission in Order No. U-06-56(5) required Chugach Electric Association, Inc. to file a revised Contract that
incorporates the stipulated modification; and

          WHEREAS,
Chugach Electric Association, Inc. and the City of Seward agree to amend
the Contract in accordance with the Stipulation and as required by the
Commission’s Order No. U-06-56(5), by
deleting Section 5(b) of the Contract in its entirety and replacing the deleted
section with a new Section 5(b) as follows:

	
 

	
 

	
 

	
 

	
5(b). Duration. This
  Agreement shall continue in force for an initial term which expires at 11:59 p.m., December 31, 2011 (“Expiration Date”).
Unless either Party
  provides written notice of termination
  to the other Party at least one (1) year prior to the Expiration Date,
  the term of this Agreement and the Expiration Date shall automatically be extended to 11:59 p.m., December 31, 2016, provided,
however, that such
  extension shall not become
  effective unless and until it is reviewed and approved by the Regulatory Commission of Alaska. If the
  term is so extended, unless either
  party provides written notice of termination to the other Party at least one (1) year prior to the extended Expiration
  Date, the term of this Agreement and the Expiration Date shall automatically be extended to 11:59 p.m., December
  31, 2021.

	
 

	
 

	
 

	
CHUGACH ELECTRIC

	
CITY OF SEWARD 

	
ASSOCIATION, INC.

	
 

	
 

	
 

	
 

	
 

	
By:  

	
 

	
By

	

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
Title: Chief Executive Officer

	
 

	
Title: Interim City Manager

	
 

	
 

	
 

	
 

	
Date: 1-19-07 

	
 

	
Date: 1 -19 - 07  

	
 

	
 

	
 

	
Effective: 

	
 

	
February 27, 2007 

	
Pursuant to:
U-06-056(6)

	

Page 1 of 59 

	
 

	
 

	
 

	
RECEIVED

	
 

	
JAN 22 2007

 

	
 

	
STATE
  OF ALASKA 

  REGULATORY COMMISSION OF ALASKA

2006

AGREEMENT
FOR THE SALE AND PURCHASE OF 

ELECTRIC POWER AND ENERGY

between 

CHUGACH ELECTRIC ASSOCIATION, INC.

and the 

CITY OF SEWARD

SECTION 1. PARTIES

          1.
The parties to this Agreement are Chugach Electric Association, Inc.
(“Chugach”), an Alaska non-profit electric cooperative corporation, having its
offices at Anchorage, Alaska; and City of Seward, Seward Electric Utilities
Division (“Seward”) having its offices at Seward, Alaska.

SECTION 2. RECITALS

          2(a).
Chugach has furnished electric power and energy to Seward under various
contractual arrangements
since July 1, 1961. Seward now receives electric power and energy under a
Wholesale Power Agreement signed by Seward
February 11,1998, as amended by signatures of Seward dated May 14, 2001
and January 16, 2006.

          2(b).
Except as specifically provided herein, this Agreement supersedes any
previous agreement and any rights and obligations of the parties under the
existing agreement or any amendment thereof.
All rights and obligations under any previous wholesale power agreement or any
previous arrangements between Seward and Chugach are hereby terminated.

          2(c).
This Agreement recognizes and is intended to operate in conjunction with the
Bradley Lake
Hydroelectric Project Agreement for the Sale and Purchase of Electric Power
(and related

1

	
 

	
 

	
 

	
Effective:
  

	
 

	
February
  27, 2007 

	
Pursuant
  to:
U-06-056(6)

	

Page
  2 of 59 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
STATE
  OF ALASKA 

  REGULATORY COMMISSION OF ALASKA

agreements)
and the 1993 Alaska Intertie Project Participants Agreement (and related
agreements) to which both Seward and Chugach are Parties.

          2(d).
Seward now has and, for the term of this Agreement, will retain the
capability to generate or otherwise supply and deliver all of its own Electric Power
sufficient to meet all of its system requirements. The Parties recognize that there may
be times when the entire load may not be able to be served by Seward’s generators, but the
load can be managed such that it is within the capability of Seward’s
generators or is supplied by other generators not owned by Seward.

SECTION 3. AGREEMENT

          3(a). Sale
And Purchase Of Electric Power. Chugach agrees to sell and deliver, and Seward agrees to
purchase and receive, all of its electric power and energy requirements from Chugach subject to the
following terms and conditions.

          3(b). System
Sale Without Reserves. The power, which Chugach is obligated to sell under this Agreement, is power
generated by and/or purchased and transmitted over Chugach’s Generation and
Transmission System. Thus, this sale is a “system sale” supported by the
resources of Chugach’s entire Generation and Transmission System, and not a
“resource sale” supported by specific, distinct and identifiable generating units and transmission
facilities included within that System, but the system sale does not include system production
reserves.

          3(c). Interruptibility
Caused by Seward’s Reliance on its Own Reserves. On request of Chugach and for the
period specified by Chugach, Seward will provide generation or other power supply for all of its
system requirements allowing Chugach to completely interrupt service to Seward’s load, but only
when and to the extent that Chugach’s available power production and power purchase contract
resources (not including emergency power purchases) are insufficient to

2

	
 

	
 

	
 

	
Effective:
  

	
 

	
February
  27, 2007 

	
Pursuant
  to:
U-06-056(6)

	

Page
  3 of 59 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
STATE
  OF ALASKA 

  REGULATORY COMMISSION OF ALASKA

serve Chugach’s other firm
loads. Chugach will use all of its available resources prior to calling upon Seward to perform this obligation. Chugach
will attempt to provide reasonable advance warning to allow Seward to supply its own load but under no circumstance
should this provision be construed to require more than two hours
notice. Chugach shall not be required to purchase emergency capacity or energy from others to avoid an interruption under
this section, but is willing to
attempt on a case-by-case basis to do so if Seward agrees to pay for any
additional costs to Chugach for such
services. Seward is responsible for all the costs of supplying it own load
during interruptions under this section. In return for Seward agreeing
to this interruptibility of power supply, Chugach will provide electric power
and energy under the rates provided for in this Agreement and the cost allocation methodology described in Section 4,
below. For purposes of this Section
3(c), notice shall be made by calling the emergency services dispatcher for the
City of Seward at (907) 224-3338, or
such other number as the parties may from time to time agree upon in writing.

          3(d).
Delivery Points. Chugach shall deliver all power under this
Agreement at Daves Creek Substation and near the Lawing Substation at
approximately mile 25 of the
Seward Highway. Chugach shall have no responsibility for transmission and
distribution beyond these Points of Delivery.

          3(e).
Resale Of Chugach Power Prohibited: Limit On Amount Of Power Actually
Taken.

          In
consideration of Chugach’s willingness to supply power under this Agreement on
an average cost basis,
Seward agrees that (1) all electric power delivered under this Agreement shall
be used to serve Seward’s retai1 electric
loads as ultimate consumers and end-users of the power, and (2) no power taken under this Agreement may or will be
resold to any other entity or otherwise used or

3

	
 

	
 

	
 

	
Effective:
  

	
 

	
February 27, 2007
  

	
Pursuant
  to:
U-06-056(6)

	

Page
  4 of 59 

	
 

	
 

	
 

	
RECEIVED

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE
  OF ALASKA 

    REGULATORY COMMISSION OF ALASKA

disposed of, by contractual agreement or otherwise, in
any other manner or for any other purpose. To
assist in enforcing this provision, the parties agree that at no time will
Seward take, and at no time will Chugach be obligated to supply,
capacity or energy under this Agreement in amounts in excess of the then-existing Seward system demand or requirement for
capacity and energy. Nothing contained
in this Section 3(e) shall preclude Seward from using power supplied hereunder
to meet its retail electric loads
while engaging in contemporaneous off-system sales of capacity or energy available to Seward from its own or other
sources.

          3(f).
Joint Use Agreement and Net Billing for Bradley Lake Power. The Parties
recognize the existence of the Joint Use Agreement and the Net Billing
Agreement for Bradley Lake Power, attached
hereto as Attachments A and B, respectively and agree that these agreements
shall continue in effect.

SECTION 4. RATES
AND BILLING

          4(a).
General Ratemaking Provision. The rates and charges applicable under
this Agreement shall be established, and shall be revised from time to
time, in accordance with (1) the substantive
ratemaking principles set forth herein, and (2) the ratemaking procedures set
forth herein. This Agreement and
rates proposed hereunder shall be submitted to the Regulatory Commission of Alaska for approval. The schedule of initial rates
under this agreement are set forth in Attachment C to this Agreement.

          4(b).
Substantive Ratemaking Principles. All rates and charges applicable
under this Agreement shall be consistent with the terms and conditions
of this Agreement and with all other lawful contractual obligations of Chugach.
Such rates and charges shall be based on allocations of costs designed to ensure that Chugach’s total revenue requirement,
including, but not limited to

4

	
 

	
 

	
 

	
 

	
 

	
Effective:
  

	
 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page 5 of 59

	
 

	
 

	
 

	
RECEIVED

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE
  OF ALASKA 

    REGULATORY COMMISSION OF ALASKA

generation, transmission,
ratemaking margins, fuel and purchased power expenses, is divided fairly and
appropriately between Chugach’s bulk power supply, generation, transmission,
distribution and retail functions, so
that no function will significantly or persistently cross-subsidize the other. Chugach shall pass through directly and Seward
shall pay Chugach average fuel and purchased power expenses associated with the energy it receives on a monthly
basis. Since Chugach is not committing any system production reserves to
providing service to Seward under this Agreement
and Seward is relying on its own reserves, no Production Reserve Costs shall be
allocated to Seward.

          4(c).
Ratemaking procedures. Chugach shall supply and be paid for electric
capacity and energy under this Agreement on a total requirements basis, except
that Production Reserve Costs shall
not be allocated to Seward, as discussed below. The following ratemaking and billing
provisions shall apply:

	
 

	
 

	
 

	
          (1) Allocation of demand-related costs. Demand-related costs, including
ratemaking margins, (together with
  customer-specific costs) will be allocated to Seward for ratemaking
  purposes in accordance with a methodology that is consistent with the
  fairness principles set forth in Section
  4(b) of this Agreement and will be based on Total System Demand, with the exception that no Production
  Reserve Costs will be allocated to Seward.

	
 

	
 

	
 

	
          (2) Computation of demand charges. To establish demand charges (expressed
in dollars per kilowatt/month) for the sale of
  electric capacity in future rate cases, test year demand-related costs, excluding Production
  Reserve Costs, will be allocated to Seward based on its proportionate contribution to the overall system peak.
  Those allocated costs will be
  divided by the sum of Total System Demand in kilowatts for each month of the
  test year used for ratemaking
  purposes.

5

	
 

	
 

	
 

	
 

	
 

	
Effective:
  

	
 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page 6 of 59

	
 

	
 

	
 

	
RECEIVED

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE
  OF ALASKA 

    REGULATORY COMMISSION OF ALASKA

	
 

	
 

	
 

	
          (3) Billing
demand and payment for capacity.
  Seward’s billing demand in each month shall be Seward’s actual peak demand on
  the Chugach system for that month.

	
 

	
 

	
 

	
          (4) Payment for
energy. Chugach will
  charge and be paid for energy for each monthly billing period in an amount
  equal to Chugach’s then-applicable energy charge (excluding fuel and
  purchased power expenses) multiplied by Seward’s total system energy
  requirements for that month, which energy requirements shall be metered at
  the Points of Delivery. Actual fuel and purchased power costs will be paid
  in accordance with Attachment C. Fuel and purchased power costs will be
  reduced by economy energy sales margins and wheeling revenues which would
  otherwise have been assigned to Seward in the fuel surcharge process based on
  Seward’s proportionate share of the total system firm sales on the Chugach
  system.

	
 

	
 

	
 

	
          (5)
  Customer Charge. Chugach will charge and be paid a monthly amount
  equal to the then applicable customer charge multiplied by the number of
  delivery meters.

	
 

	
 

	
 

	
          (6)
  Good Faith. The Parties agree to operate their systems in good faith
  to accomplish the purpose of relying upon the power supply reserves provided
  by Seward while providing Seward with a reduced demand cost allocation
  reflecting the unique nature of the service provided under this Agreement.

          4(d).
Billing. Seward shall pay bills within 15 days of receipt. In the event
any portion of any bill is disputed, pending resolution of the billing dispute,
the undisputed portion of each bill shall be paid to Chugach in timely fashion
pending resolution of the disputed amount.

6

	
 

	
 

	
 

	
 

	
 

	
Effective:
  

	
 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page 7 of 59

	
 

	
 

	
 

	
RECEIVED

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE
  OF ALASKA 

    REGULATORY COMMISSION OF ALASKA

          4(e). Margins
(capital credits). Seward
shall be entitled to an allocation of margins (capital credits) based on
Seward’s contribution to Chugach’s electric generation and transmission margins
consistent with Chugach’s bylaws.

SECTION 5. TERM

          5(a).
Effective date. This Agreement shall become effective June 1, 2006. This
Agreement and any amendments thereto shall become effective only upon obtaining
the written approval of the Regulatory Commission of Alaska.

          5(b).
Duration. This Agreement shall continue in force for an initial term
which expires at 11:59 p.m., December 31, 2011 (“Expiration Date”). Unless either
Party provides written notice of termination to the other Party at least one
(1) year prior to the Expiration Date, the term of this Agreement and the
Expiration Date shall automatically be extended to 11:59 p.m., December 31,
2016. If the term is so extended, unless either Party provides written notice
of termination to the other Party at least one (1) year prior to the extended
Expiration Date, the term of this Agreement and the Expiration Date shall
automatically be extended to 11:59 p.m., December 31, 2021.

          5(c).
Amendments. This Agreement may be amended or extended at any time by the
written consent of all parties hereto, but all amendments hereto, including
termination prior to the expiration of the term hereof, will not become
effective until approved in writing by the Commission.

SECTION 6. PROVISIONS RELATING TO ELECTRICAL
SERVICE

          6(a). Capacity To
Be Made Available. Except
when prevented by an Uncontrollable Force, or when Chugach has requested Seward
to provide for its requirements from its own resources pursuant to Section 3(c)
of this Agreement, Chugach shall make electric capacity

7

	
 

	
 

	
 

	
 

	
 

	
Effective:
  

	
 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page 8 of 59

	
 

	
 

	
 

	
RECEIVED

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE
  OF ALASKA 

    REGULATORY COMMISSION OF ALASKA

continuously available to Seward
at the Point of Delivery in the amount of Seward’s total demand for electric
capacity.

          6(b).
Restoration Of Service. In the case of a
partial or total loss of service to Seward as a result of problems encountered on the Chugach system, including
interruptions under Section 3(c) of this Agreement, Chugach will extend its
reasonable best efforts to restore service in a prompt and non-discriminatory
manner.

          6(c). No
Duty To Third Parties. This Agreement shall not create on the part of
Seward or Chugach any legal duty owed to the
retail customers of any party or to other wholesale or wheeling customers of Chugach, including without
limitation, any legal duty to maintain continuity of Electric Power service to
other parties or customers. Nothing in the foregoing sentence shall limit the
rights afforded Chugach or Seward under this Agreement.

          6(d).
Prudent Utility Practice. All parties shall at all times design,
construct, maintain, operate, and repair their respective facilities and
equipment in accordance with Prudent Utility Practice and standards in order to prevent, minimize, or correct any
failures or partial failures of such facilities
or equipment. Seward shall design, construct, operate, maintain, and repair its
facilities in accordance with
Prudent Utility Practice and shall meet the following constraints:

	
 

	
 

	
 

	
          (1)
  Impairment of Service. Seward’s load shall not cause sine-wave
  distortion or large short-interval demand that will impair service or cause
  interference with telephone, television, other facilities or other utilities’
  customers.

	
 

	
 

	
 

	
          (2)
  Deviation from Phase Balance. Seward’s load shall not result in a deviation from phase balance of more than ten (10)
  percent at any time.

8

	
 

	
 

	
 

	
 

	
 

	
Effective:
  

	
 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page 9 of 59

	
 

	
 

	
 

	
RECEIVED

JAN 22 2007

STATE OF ALASKA

REGULATORY COMMISSION OF ALASKA  

          (3) Power
Factor. Seward and Chugach shall each supply their own VAR requirements, as
measured at the Point of Delivery, to correct any power factor problems on
their respective sides of the Point of Delivery. Seward must maintain a minimum
power factor equal to or in excess of 95 %. Failure to meet this power factor
requirement will result in charges for reactive power. For each percent of
power factor below 95%, Seward shall pay an additional 1% of its demand charge
as computed under Section 4(c)(2).

6(e). Reserves.

          (1) Chugach
will maintain its own power generation Reserves, as necessary to support its
loads other than Seward. Pursuant to Section 3, Chugach will neither maintain
nor provide Reserves to support, under this Agreement, the generating units of
Seward.

          (2) In
order to avoid damage to or additional demands on Chugach’s system, Seward
agrees that it will take care at all times it is operating its generation in
parallel with Chugach’s generation to maintain sufficient spinning Reserves (or
demonstrably equivalent automatic load shedding devices) to support any and all
of their own generation.

          (3) Chugach
will plan its system to accommodate Seward loads taking into account the provisions in Section 3(c) of this
Agreement relating to Seward providing its own reserves.

          6(f). Voltage. The Electric Power provided hereunder shall be
three-phase, alternating current, at the nominal voltages set forth in
Attachment C attached hereto ± 5% under normal conditions and ± 10% under
emergency conditions. All parties shall endeavor to maintain proper phase
voltage balance on their respective systems. If a problem with voltage occurs,
all parties will use their reasonable best efforts to correct such problems.

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          6(g).
Frequency. Chugach will use its reasonable
best efforts to maintain its system frequency at 60 hertz averaged over each
twenty-four hour period.

SECTION 7. METERING

          7.
Each party shall (1) make or provide for biennial tests and inspections of all
its meters and recorders used for billing
purposes in this Agreement in order to maintain a commercial standard of accuracy, (2) restore to a condition of
accuracy any meters found to be inadequate, and (3) advise the other parties promptly of the results of any
such test which shows any inaccuracy more than 0.5 percent slow or fast. Each party shall be permitted
to have representatives present at such tests and inspections. Each party shall notify the other
party at least one (1) week in advance of the tests and inspections. Each party shall make or provide for
additional tests of its meters and recorders at the request of another party and in the presence of
representatives of the requesting party or parties. The cost of any additional test requested by such
party or parties shall be borne by the party owning the equipment if such test shows a meter or recorder
is inaccurate by more than 0.5 percent slow or fast. In the event that
the result of such tests shows a meter registering in excess of 0.5 percent
either above or below the current
registration, then the readings of such meter previously taken for billing purposes
shall be corrected according to the percentage of inaccuracy so found for the
known or estimated period of such error, but
no such correction shall extend beyond ninety (90) days previous to the day on
which the inaccuracy is discovered by such test. For any period that a meter
should fail to register, or its
registration should be so erratic as to be meaningless for billing purposes,
the bill for power and energy shall be based upon records from check
meters, if available and tested for accuracy,
or otherwise upon the best available data.

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SECTION 8. GOOD FAITH PERFORMANCE OF RIGHTS AND
OBLIGATIONS

          8. Each party to
this Agreement covenants and agrees
to act in good faith under this Agreement and the terms cited herein and
perform in a manner consistent with Prudent Utility Practice. The Parties
recognize that the Limited Interruptibility feature under Section 3(c) of this
Agreement will require and the Parties agree to coordinate closely on matters
relating to service interruptions for maintenance or other reasons.

SECTION 9. FORCE MAJEURE

          9. In the event any
party,
by reason of an Uncontrollable Force, is rendered unable, wholly or in part, to
perform its obligations under this Agreement (other than its obligations to pay
money), then upon said party giving notice and particulars of such
Uncontrollable Force, its obligation to perform shall be suspended or
correspondingly reduced during the continuance of any inability so caused, but
in no greater amount than required by the Uncontrollable Force and for no
longer period, and the effects of such cause shall, so far as possible, be
remedied with all reasonable and prompt dispatch. The affected party shall not
be responsible for its delay in performance under this Agreement during delays
caused by an Uncontrollable Force. Seward shall be responsible for meeting its
own power supply needs either from its own resources or from other purchases
when Chugach power is unavailable by reason of an Uncontrollable Force.

SECTION
10. RESPONSIBILITY FOR POWER SUPPLY AND DELIVERY

          10(a).
Responsibility Of Parties. Except as provided in Sections 10(b) and
10(c), each party shall assume responsibility on its respective side of the
Points of Delivery for the electric service supplied and/or taken, as well as
for maintenance of any apparatus used in connection therewith. Regardless of
the foregoing and of the location of any Point of Delivery or metering

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point,
however, each party shall be responsible for maintaining and operating
its own facilities unless
(1) a different division of responsibilities is agreed upon in writing by the
parties, or (2) a different division of
responsibilities in specific emergency circumstances is agreed upon orally or
in writing by the parties.

          10(b).
Indemnification. Each party shall, as to all actions taken relevant to
this Agreement,
indemnify and hold harmless the other party, its directors, officers, and
employees, against
all loss, damage, legal expense and liability to third persons arising from
any injury to, or death of, persons or injury to property to the extent caused by any
negligent act or omission of the indemnifying
party, or its directors, officers, or employees.

          10(c).
Notice, Defense And Settlement Of Legal Proceeding.

          (1)
If
any legal proceeding shall be instituted, or any claim or demand made, against any party hereto
(hereinafter called the “Indemnified party”) with respect to which the other party (hereinafter called the
“Indemnifying party”) may be liable hereunder, the Indemnified party shall give prompt written notice thereof, within
thirty days thereof by certified
mail, return receipt requested, and promptly deliver a true copy of any summons
or other process, pleading or notice to the Indemnifying party.

          (2) In
any action in
which there is no reasonable possibility of joint liability of any parties to
this Agreement, the Indemnifying party shall have the absolute right, at its
sole expense and without the consent of the Indemnified party, to defend and
settle any such legal proceeding, claim or demand. However, the Indemnifying
party shall give notice, if possible, to the Indemnified party of any proposed
settlement. In no event shall the participation of the Indemnified party in the
defense and settlement of any legal proceeding,

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claim
or demand, interfere with or alter the Indemnifying party’s absolute right to
control the defense and/or settlement of the legal proceeding, claim or demand.
The Indemnified party may, if it sees fit, participate in defense of any such
legal proceeding, at its own expense. 

          (3)
Where joint liability of both parties to this Agreement is a reasonable possibility,
no party which has exposure to joint liability shall be limited in their
participation in the action.

          (4)
If the Indemnified party, without the prior consent of the Indemnifying
party (which consent, if requested, shall not be unreasonably withheld), makes
any settlement with respect to any such legal proceeding, claim or demand, the
Indemnifying party shall be discharged of any liability hereunder with respect
thereto.

          (5)
The Indemnifying party shall pay all reasonable costs incurred by the
Indemnified party in any successful enforcement of this indemnity. 

SECTION 11. INSURANCE

          11.
Each party agrees to use its best efforts to obtain and maintain in full force
and effect during the term of this Agreement, adequate insurance with
responsible insurers as may be required by law.

SECTION 12. WAIVER

          12.
Any waiver at any time by any party to this Agreement of its rights with
respect to any default of the other party hereto, or with respect to any other
matter arising in connection with this Agreement, shall not be considered a
waiver with respect to any prior or subsequent default, right or matter.

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SECTION
13. SEVERABILITY 

          13.
The provisions of this Agreement are not intended to be considered in isolation
and each such provision represents a portion of the consideration agreed upon
among the parties for each other provision of this Agreement. The parties
believe that it would be impossible, in general, to invalidate or sever any
particular provision of this Agreement without working a potentially great
hardship on one or the other of the parties, and without denying one or more of
the parties of important, bargained-for consideration. If, after this Agreement has become
effective, any article, paragraph, clause or provision of this Agreement shall
be finally adjudicated by a court of competent jurisdiction or a regulatory
agency with jurisdiction over the parties to be invalid or unenforceable, or if
any administrative agency with authority over the parties shall require changes
to this Agreement, then the parties shall in good faith meet promptly to
negotiate lawful amendments or modifications to this Agreement that will
effectuate the original intent of this Agreement and return the parties as
nearly as possible to the position that each would have enjoyed in the absence
of such judicial, regulatory, or administrative action.

SECTION
14. SUCCESSORS AND ASSIGNS 

          14(a).
Assignment Generally. This Agreement and all of the terms and provisions hereof
shall be binding upon and inure to the benefit of the respective successors and
assigns of the parties hereto, save that no assignment or other transfer of
this Agreement or any interest hereunder by any party hereto shall be effective
without the prior written consent of all of the other parties (which consent
shall not be unreasonably withheld), and said assignee must, in the
commercially reasonable opinion of the other parties, be financially capable of
assuming such obligations. Chugach agrees not to sell or otherwise dispose of
its Generation and Transmission System (or any portion thereof  

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which is needed to permit performance of this
Agreement) to any entity that refuses to assume or is unable to perform
Chugach’s obligations under this Agreement.

          14(b).
Assignment to Secured Lenders. Notwithstanding the provisions of subsection
13(a), any party hereto may assign this Agreement, together with all of its
rights and obligations there under, (A) to or in trust for any secured tenders
of such party, for the purpose of securing obligations for borrowed money, or
(B) pursuant to the exercise by any such secured lender of any of the rights,
powers or privileges provided for by the mortgages or other security
instruments of such party for borrowed money; provided, that no such assignment
shall in any way relieve such party of any obligations hereunder. No such
secured lender shall, as a result of such assignment or the subsequent exercise
of its rights with respect to this Agreement under any mortgage, deed of trust
or other security instrument, be construed to have assumed, or otherwise to
have become personally liable for, the assignor’s obligations hereunder, but
such secured lender’s ability to exercise the rights of its assignor hereunder
shall be subject to performance of the assignor’s corresponding obligations
under this Agreement. In the event any such secured lender exercises any of its
rights, powers or privileges with respect to this Agreement under said
mortgages or other security agreements, such secured lender may thereafter
assign this Agreement, together with all the rights and obligations there
under, to any entity authorized and able to perform the obligations under this
Agreement, which entity shall succeed to all the rights and assume all the
obligations of the borrower-assignor under this Agreement. Prior to the
exercise by any secured lender of any rights or remedies under any mortgages or
security agreements with respect to this Agreement, such secured lender shall
give the parties hereto reasonable notice that it intends to exercise such
rights and remedies. 

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SECTION
15. NOTICES 

          15.
Except as to notice of
interruption provided in Section 3(c), any notice or demand required by this
Agreement to be given to any party shall be effective when it is received by
such party, and in computing any period of time from such notice or demand,
such period shall commence at 12:01 p.m. prevailing time at the place of
receipt on the date of receipt of such notice or demand. Whenever this
Agreement calls for notice or demand (unless otherwise specifically provided),
or notification by any party is necessary, the same shall be in writing
directed to the General Managers of the other parties. Should telephone notice
be necessary, it shall be directed to the General Managers or to a designated
or otherwise appropriate subordinate. The designation of the name to which any
such notice or demand shall be directed may be changed at any time and from
time to time by either party by giving notice as provided above.

SECTION 16. DEFAULT AND DISPUTE RESOLUTION 

          16(a).
Notice of Default. Upon failure of any party to perform any obligation
hereunder, the party or parties to whom such performance is due shall make
demand in writing upon the defaulting party. If such failure, other than a
failure to pay Chugach when such payment is due, is not cured within thirty
(30) days from the date of such demand it shall constitute a default at the
expiration of such period. Chugach’s bills to Seward shall constitute written
demands for payment for purposes of this Section and Seward shall be considered
to be in immediate default of their payment obligations if such bills are not
fully paid within 10 days after they are due. 

          16(b).
Performance pending Resolution Of Dispute. Pending resolution of any dispute,
each party shall continue to perform its obligations under this Agreement,
including the obligations to deliver and receive electric power and the
obligation to pay bills submitted by Chugach for such 

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power. All parties shall be entitled to seek immediate
judicial enforcement of this continued performance obligation notwithstanding
the existence of a dispute. Application for such enforcement shall be made to
the Superior Court for the State of Alaska, in Anchorage.

          16(c).
Consultation To Resolve Disputes. After notice is
delivered and before default occurs under Section 16(a) the parties
shall in good faith endeavor to meet promptly and to resolve any dispute
through good faith negotiation. If a party has met its obligation of good faith
under this Section 16(c), and if the dispute has not been resolved before
default occurs, than that party shall be entitled at any time thereafter to
seek immediate judicial enforcement of this Agreement in the Superior Court for
the State of Alaska, in Anchorage, by bringing any suit, action or proceeding,
at law or in equity, including without limitation mandamus, injunction, damages
and action for specific performance, as may be necessary or appropriate to
enforce any covenant, agreement or obligation of this Agreement. 

          16(d).
Remedies Cumulative. No remedy conferred upon or reserved to the parties hereto
is intended to be exclusive of any other remedy available hereunder or now or
hereafter existing at law, in equity, by statute or otherwise, but each and
every such remedy shall be cumulative and shall be in addition to every other
such remedy. The pursuit by either party of any specific remedy shall not be
deemed to be an election of that remedy to the exclusion of any other, whether
provided hereunder or by law, equity or statute. 

SECTION 17. RIGHT OF ACCESS AND REMOVAL 

          17.
Each party will have access to the premises, facilities, or property of the
other party at all reasonable times for any purpose necessary or appropriate to
the performance of this Agreement. Upon termination of this Agreement in
accordance with the provisions hereof, each party will

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remove any property or equipment which it may have
installed on the premises of the other party for any purposes hereunder. Seward
shall provide Chugach with access to existing metering or allow Chugach to
install any metering and equipment necessary or convenient to allow Chugach to
track Seward’s load and generation during periods of interruption of service
from Chugach.

SECTION 18. APPLICABLE LAW 

          18.
The parties agree that the interpretation and application of this Agreement
shall be governed by the laws of the State of Alaska.

SECTION 19. MODIFICATION 

          19.
No modification of this Agreement shall be valid unless it is in writing and
signed by all parties hereto, and approved by all appropriate regulatory and
administrative agencies or bodies.

SECTION 20. SECTION HEADINGS 

          20.
The section headings in this Agreement are for convenience only, and do not
purport to and shall not be deemed to define, limit or extend the scope or
intent of the section to which they pertain.

SECTION
21. MUTUAL COVENANTS AND WARRANTIES 

          21.
Each party covenants and warrants to the other parties that it (1) has the
legal authority and ability to enter into and perform, and (2) will at all
times maintain the practical and financial ability to perform this Agreement
and each obligation assumed by such party under this Agreement.

SECTION 22. APPROVAL OF THE COMMISSION 

          22.
This Agreement does not take effect without the prior approval of the
Regulatory Commission of Alaska and is at all times subject to revisions by the
Commission.

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SECTION 23. DEFINITIONS

          The
following terms, when used in the Agreement and Exhibits hereto, shall have the
meanings specified.

          23(a).
Agreement. This Agreement for the Sale and Purchase of Electric Power
and Energy.

          23(b).
Electric Power or Power, Electric energy or electric capacity, or both.
Where the context of this Agreement requires a distinction, electric energy is
expressed in kilowatt-hours (kWh) or megawatt hours (MWh), and electric
capacity is expressed in kilowatts (kW) or megawatts (MW).

          23(c).
Generation and Transmission System. All existing and future facilities
(whether or not operable, and whether or not operating) used by Chugach for
generation and transmission of electric power, including, in addition to
physical generation and transmission facilities and facilities associated with
the provision of fuel for electric power generation, Chugach’s rights and
obligations to obtain (by purchase, wheeling, or otherwise) electric power
generated by other entities or fuel for the generation of electric power by
Chugach, to the extent that the costs of such facilities and rights are
allowably included in the rates charged to Chugach’s retail consumers.

          23(d).
Production Reserve Costs. Costs allocated to that portion of Chugach’s
power production capacity that represents available power production capacity
(including contract power purchases, but not emergency power purchases) in
excess of Chugach’s system peak requirements.

          23(e).
Prudent Utility Practice. At a particular time any of the practices,
methods and acts engaged in or approved by a significant portion of the
electric utility industry at such time, or which in the exercise of reasonable
judgment in light of facts known at such time, could have been

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expected to accomplish the
desired results at the lowest reasonable cost consistent with good business
practices, reliability, safety and reasonable expedition. Prudent Utility
Practice is not required to be the optimum practice, method or act to the
exclusion of all others, but rather to be a spectrum of possible practices,
methods or acts which could have been expected to accomplish the desired result
at the lowest reasonable cost consistent with reliability, safety and
expedition. Prudent Utility Practice includes due regard for manufacturer’s
warranties and the requirements of governmental agencies of competent
jurisdiction and shall apply not only to functional parts of the parties’
generation, transmission, and distribution facilities, but also to appropriate
structures, landscaping, painting, signs, lighting and other facilities.

          23(f).
Reserves. Electric Power needed to avert shortages of capacity and/or
energy for the benefit of retail or wholesale consumers that a utility system
is obligated to serve and which is available to that system either from
facilities or from purchases or other arrangements, which such system is
contractually entitled to rely upon for such purposes.

          23(g).
Total System Demand. The Seward demand (regardless of whether Seward is
receiving power from Chugach or its own generation) registered during that
15-minute interval for each month in which the sum of (1) the demands metered
at the delivery points described in Section 3(d), and (2) the demands on all
Seward generation is greatest for that month. Seward shall permit Chugach to
install, or cause to be installed, suitable metering and registration equipment
on its facilities.

          23(h).
Uncontrollable Force. Any cause beyond the control of a party hereto and
which by the exercise of due diligence that party is unable to prevent or
overcome, including but not limited to an act of God, fire, flood, volcano,
earthquake, explosion, sabotage, an act of the public enemy, civil

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or military authority,
including court orders, injunctions and orders of governmental agencies of
competent jurisdiction, insurrection or riot, an act of the elements, failure
of equipment, or the inability to obtain or ship equipment or materials because
of the effect of similar causes on carriers or shippers. Strikes, lockouts, and
other labor disturbances shall be considered Uncontrollable Forces, and nothing
in this Agreement shall require either party to settle a labor dispute against
its best judgment; provided, that during any labor dispute all parties shall
make all reasonable efforts under the circumstances, including, to the extent
permitted by law, the use of replacement personnel and/or management personnel
and/or other personnel under the provisions of a mutual aid agreement, to
ensure, if possible, the continued ability of the parties to produce, deliver,
receive, and distribute the Electric Power that is the subject matter of this
Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CITY OF SEWARD

	
 

	
CHUGACH ELECTRIC
 ASSOCIATION, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By

	
 

	

	
 

	
By

	
 

	

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Title

	
  City Manager

	
 

	
Title

	
  Interim, Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
Date

	
  3-15-06

	
 

	
Date

	
  3-23-06

	
 

	
 

	
 

	

	
 

	
ATTEST

	
 

	
 

	
 

	

	
 

	
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JOINT USE AGREEMENT

	
 

	
BETWEEN

	
 

	
CITY OF SEWARD

	
 

	
AND

	
 

	
CHUGACH ELECTRIC ASSOCIATION, INC.

          The
City of Seward, & municipal corporation of the state of Alaska (hereinafter
“Seward”), and Chugach Electric Association, Inc., an Alaska nonprofit electric
cooperative members corporation (hereinafter “Chugach”), desire to cooperate in
common use of the poles and right-of-way specifically described the scope of
Agreement and therefore mutually agree to the following reasonable terms and
conditions.

ARTICLE I. SCOPE OF AGREEMENT

          This
Agreement shall be in effect in respect to the pole line to be constructed by
Seward on a new right-of-way which generally coincides with a right-of-way
presently occupied Chugach’s distribution line between Dave’s Creek Substation
as Lawing in the State of Alaska. The existing pole line of Chugach is to be
removed and Chugach’s circuits are to be transferred (ILLEGIBLE) Seward’s new pole line.

          The
poles to be commonly used are shown on Exhibit “A” attached hereto and on which
is indicated the location, the heigh and class, and the initially proposed
attachments of Seward and Chugach. 

          The
locations, heights and strengths of the poles to be commonly used provide for
Chugach’s future requirements, if may, as developed in its planning studies.
Chugach shall have the right, subject to the other provisions of this Agreement, to make these indicated improvements at the times they are needed throughout
the life of this Agreement.

	
 

	
 

	
 

	
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          Chugach
will own and operate the distribution under and the pole attachments associated
with this underbuild as flected on Exhibit “A.”

          Seward
will own and operate the 115 kv transmission 1 and the common use poles.

          Chugach
and Seward have co-equal rights to have the attachments on the common-use poles
both during the term of the Agreement and after the Agreement is terminated.
Any dispute between the parties concerning the joint use of these poles via be
resolved in good faith and with each party bearing its fa share of any costs.
Neither party will be required to terminate its presence on a common use pole
pending the resolution of a dispute between the parties.

ARTICLE II. SPECIFICATIONS

          The
common use of poles covered by this Agreement shall at all times conform to the
requirements of the National Electrical Safety Code, latest edition, and the
rules and regulations of any governmental entity having authority over the
subject matter. The common use of poles covered by this Agreement shall
likewise be in accordance with industry standards and shall not conflict with
safe access by repairmen to any equipment that may be on the poles. The common
use of the poles covered by this Agreement shall be in accordance with the
bulletins and specifications of the Rural Electrification Administration which
are applicable to the subject matter.

ARTICLE III. ESTABLISHING COMMON USE POLES

          Chugach
agrees to allow Seward to perform such work on its existing pole line as is
necessary to facilitate the construction of the new pole line and to remove
the existing pole line upon completion of the new pole line and the circuits of
both parties. All work performed by Seward in connection with the construction
of the new pole line and the attachment of the cir-

	
 

	
 

	
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cuits of
Seward and Chugach to the new pole line shall conform to the requirements of
the National Electrical Safety Code, latest edition, and the rules and
regulations of any governmental entity having authority over the subject
matter, including the bulletins and specifications of the Rural Electrification
Administration which are applicable.

          The
parties agree that the cost of the work performed on Chugach’s existing pole
line and the installation of Chugach’s attachments and circuits on Seward’s
pole line shall be borne by Seward.

          Any
reclearing of existing rights-of-way and any tree trimming necessary for the
establishment of the common use poles shall be performed by Seward and the
costs of such clearing shall be borne by Seward. Any clearing or tree trimming
which becomes necessary for the maintenance of the common use poles shall be
handled as specified in Article V.

          All
poles commonly used under this Agreement shall remain the property of Seward.
If additional common use poles are required following the initial construction
of the common use pole line and if such new pole is for the sole benefit of
Seward. Seward will be responsible for the setting of the new pole and the
attachment of its facilities to the new pole. Chugach will be responsible for
the attachment of its facilities to the new pole, but Seward will reimburse to
Chugach the reasonable costs associated with such attachment. If the new pole
is for the sole benefit of Chugach, Seward will be responsible for the setting
of the new pole and the attachment of its facilities to the new pole. Chugach
will be responsible for the attachment of its facilities to the new pole and
will reimburse to Seward the reasonable costs of the setting of the new pole
but not the costs associated with the attachment of Seward, facilities.

	
 

	
 

	
JOINT USE AGREEMENT 

	
 

	
PAGE 3 of 16 

	
 

	
 

	
Effective:

	
 

	
February
  27, 2007

	
 

	
 

	
Page 25 of
  59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

ARTICLE IV. EASEMENTS AND RIGHTS-OF-WAY 

          Chugach
shall be named as an additional party to the rights-of-way acquired by Seward
in connection with the common-use pole line between Dave’s Creek Substation and
Lawing. Chugach shall have the right to review and approve all such rights-of-way
and shall exercise this right of review and approval in a reasonable manner.
Both parties agree to observe all conditions contained in any such easements. 

ARTICLE V. MAINTENANCE OF POLES,

ATTACHMENTS AND RIGHTS-OF-WAY

          (a)
Seward shall, at its own expenses, maintain the commonly used poles in a safe and serviceable condition and in accordance
with the specifications of the National Electrical Safety Code, latest edition,
and the further specifications mentioned in Article II. Seward shall
replace, reinforce or repair such of these poles as become defective.

          (b)
Whenever it is necessary to replace a commonly used pole, Seward shall, before making
such replacement, give written notice thereof 30 days in advance (except in case
of emergency when verbal notice will be given and subsequently confined in
writing) to Chugach, specifying in such notice the time of such proposed replacement and Chugach shall at the
time so specified transfer its
attachments to the new joint pole. The replacement of the joint pole and the
attachment of the facilities to each party shall be done in such a manner as to
comply with the provisions of subsection (d) of this Article. 

          (c)
Each party shall at all times maintain all of its attachments in accordance
with the specifications mentioned in Article II and shall keep them in safe
condition and in thorough repair. Each party shall maintain at all times, either “in-house
or by agreement with a qualified
contractor, the capability, 2 hours a day, 7 days a week, of responding
forthwith to repair or

	
 

	
 

	
JOINT USE AGREEMENT 

PAGE 4 of 16 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
    Page 26 of 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

replace its facilities
or otherwise respond to emergency situations and shall keep the other informed
as to the phone numbers to notify of emergency conditions. Qualified contractor
shall be defined as a contractor who is duly licensed to do the required
maintenance work, who possesses experience in doing such work, who possesses
the necessary equipment to do such work and who employee persons to do the actual
maintenance work who possess current certificates of fitness for the performance
of such work.

          (d)
If the facilities of either party are not maintained in accordance with the
specifications of this Article and if such facilities threaten the facilities of the
other party, then the party whose facilities are threatened may take the
following action:

	
 

	
 

	
 

	
          1.     If
 the threat posed by the non-maintained facilities does not constitute an
 emergency, the party whose facilities are threatened shall notify the other party
 both orally and in writing of the existing threat. The party whose facilities
 are non-maintained shall meet within 30 days of the receipt of the written
 notice in order to discuss any defect.

	
 

	
 

	
 

	
          2.     If
 the threat posed by the non-maintained facilities does constitute an
 emergency in that it poses an imminent threat to the facilities of the other
 party, then the party whose facilities are threatened shall attempt to notify
 the other party at least orally of the existence of the emergency situation.
 If the emergency situation is not immediately corrected by the other party,
 then the party whose facilities are threatened shall be allowed to perform
 only such work on the facilities of the other as is necessary to remove the
 immediate emergency. The party performing such work shall have no liability
 to the other party for damages caused

	
 

	
 

	
JOINT USE AGREEMENT 

PAGE 5 of 16 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
    Page 27 of 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
 

	
to the facilities of the other party as a result of
 such work unless such damage is caused by the reckless or willful disregard
 of the other’s facilities not justified by the emergency conditions then
 Involved. The party doing the emergency work shall furnish the other party
 oral and written notice of the emergency as soon as is practical. The reasonable
 costs for such emergency work shall be reimbursed by the party whose
 non-maintained facilities created the emergency. In the event of an emergency affecting jointly the facilities
 of Seward and Chugach, the parties may each restore their facilities as soon
 as is feasible.

          (e)
Each party shall at all times take the necessary steps to minimize to the extent
reasonably possible any disruption in the services provided by the other’s
facilities. Where maintenance work, either emergency or otherwise, on the
facilities of one party necessitates interruption in services provided by the
facilities of the other party, such maintenance work shall be performed in such
a manner so as to minimize to the extent reasonably possible the interruption
in services. The party whose maintenance work will necessitate the interruption
in service provided by the other party shall notify the other party in advance
both orally and in writing of such
planned maintenance work. The party whose services will be interrupted by such
work shall have the right to review and approve the plan for maintenance work
of the other which will necessitate
the interruption in services. Such right of review and approval shall be
exercised in a reasonable manner. 

          If
there if an unreasonable disruption in service is a result of maintenance work
by the other party, the party whose services have been disrupted may notify the
other party of the disruption. If the service disruption is not immediately
cor-

	
 

	
 

	
JOINT USE AGREEMENT 

PAGE 6 of 16 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
    Page 28 of 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
 

	
JAN 22 2007 

	
 

	
 

	
 

	
STATE OF ALASKA  

	
 

	
REGULATORY COMMISSION OF ALASKA  

rected by the
other party, the party whose services have been disrupted shall be allowed to
perform such work as is necessary to remedy the unreasonable disruption in service.
The reasonable costs of such work to correct the service disruption caused by
the maintenance work of the other party shall be reimbursed to the party whose
service was disrupted by the party causing the disruption.

          (f)
Seward will not allow attachments by any third party on the common-use poles
without securing the prior concurrence of Chugach to such attachments. Chugach
shall not unreasonably with-hold its concurrence to the approval of such
attachments. No such attachments by a third party will be approved by seward on
the common use poles without securing such third party’s agreement to maintain
it’s attachments in accordance with the specifications of Article II of this
Agreement.

          (g)
All necessary right-of-way maintenance, pertaining to the common-use poles and
attachments including tree trimming or cutting, shall be performed by seward.
The costs of such right-of-way maintenance shall be borne by the parties to this
agreement as follows. Seward will pay 2/3 (two-thirds) of the costs of the
maintenance work and Chugach will pay the remaining 1/3 (one-third) of the
costs of such work. No maintenance work will be performed by Seward without the
prior concurrence of Chugach as to the performance of such work. Such
concurrence shall not be unreasonably withheld by Chugach.

ARTICLE VI. PROCEDURE WHEN CHARACTER

OF CIRCUITS IS CHANGED 

          (a)
When either party desires to change the character of its circuits, such party
will give thirty (30) days notice to the other party of such contemplated change
in the character of its circuits. Any such change in the character of the circuits shall
require the concurrence of both parties, and such concurrence will

JOINT USE AGREEMENT

PAGE 7 of 16 

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 29 of
 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
 

	
JAN 22 2007 

	
`

	
 

	
 

	
STATE OF ALASKA  

	
 

	
REGULATORY COMMISSION OF ALASKA  

not be
unreasonably withheld. All construction changes require to accomodate the new
circuits shall meet the terms of the specifications mentioned in Article II for
the character of the circuits involved.

          (b)
If the change in the character of circuits require Pole replacements for the
sole benefit of Seward, Seward will be responsible for the setting of such poles and the attachment of its facilities to the new poles.
Chugach will be responsible for the attachment of its facilities to the new
poles, but seward will reimburse to Chugach the reasonable costs associated with
such attachments. If the new poles are for the sole benefit of Chugach, Seward
will be responsible for the setting of such poles and the attachment of its
facilities to the new poles. Chugach will be responsible for the attachment of
its facilities to the new poles and will reimburse to Seward the reasonable
costs of the setting of the new poles
but not the costs associated with the attachment of Seward’s facilities.

ARTICLE VII. ABANDONMENT AND RELOCATION 

          (a)
If Seward desires at any time to abandon any commonly used pole, it shall give
Chugach notice in writing to that effect at least sixty (60) days prior to the
date on which it intends to abandon such pole. If at the expiration of said
period Seward shall have no attachments on such pole but Chugach shall not have removed all of the attachments therefrom, such pole shall
thereupon become the property of Chugach, and Chugach shall hold Seward
harmless from all obligation, liability, damages, costs, expenses or changes
incurred thereafter, and not arising out of, the presence or condition of such
pole or any attachments thereon: and shall pay Seward for such pole an amount as may by mutually agreeable to both parties.
Seward shall further evidence
transfer to Chugach of title to the pole by means of a bill of sale.

JOINT USE AGREEMENT

PAGE 8 of 16 

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 30 of
 59

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
 

	
STATE OF ALASKA

	
 

	
REGULATORY COMMISSION OF ALASKA

          (b)
Chugach may at any time abandon the use of a come pole by giving due notice
thereof in writing to Seward and removing therefrom any and all attachments it
may have thereon.

          (c)
Should any of the commonly used poles owned Seward have to be relocated at the
direction of any authorized federal, state or local governmental entity, Seward
shall, before making such relocation, give written notice thereof to Chugach
days in advance specifying in such notice the time of such relocation. Chugach
shall at the time so specified transfer it attachments to the relocated pole.
in the event that Seward it reimbursed from any governmental entity for the
costs of the relocation of the pole and the attachments thereon, Chugach will
be entitled a proportionate share of that reimbursement. Chugach share of the
reimbursement shall be computed as the product of the amount of reimbursement
received from the governmental entity multiplied by the ratio of Chugach’s
costs of relocation of it facilities to the total cost to Chugach and Seward
for the relocation of their facilities.

ARTICLE VIII. DAMAGE REPORTS, LIABILITY,

AND INDEMNITY/CONTRIBUTION  

          (a)
Seward and Chugach shall each make an immediate report to the other of any
damages caused by the reporting-party to the other’s facilities (and those of
any other parties on the pole).

          (b)
Liability in tort or for breach of contract or otherwise as between Seward and
Chugach for damages to property of Seward or Chugach, not involving claims of
third parties, shall be as follows:

	
 

	
 

	
 

	
          1.
 Seward shall be liable to Chugach for the reasonable costs for the physical
 repair of Chugach facilities damaged by the negligence of Seward, but Seward
 shall not be liable for any interference with the 

JOINT USE AGREEMENT

PAGE 9 OF 16 

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
 

	
 

	
Pursuant to:

	
Page 31 of
 59

	
U-06-056(6)

	
 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA

	
 

	
REGULATORY COMMISSION OF ALASKA

	
 

	
 

	
 

	
operation of
 Chugach’s facilities or for any special incidental, indirect or consequential
 damages to Chugach arising in any manner.

	
 

	
 

	
 

	
          2.
 Chugach shall be liable to Seward for the reasonable costs for the physical
 repair of Seward facilities damaged by the negligence of Chugach, but
 Chugach shall not be liable for any special incidental, indirect or
 consequential damages to Seward arising in any manner.

          (c)
With respect to claims by third parties, including employees, agents, or
contractors of Seward or Chugach, Chugach shall indemnify Seward against any
and all claims and demands for damages to property, including any environmental
damage for which recovery is sought, or injury or death to persons, including
any payments made under any workmen’s compensation law or any plan for
employees’ disability and death benefits, which may arise out of or be caused by
any negligence of Chugach, its agents, contractors, or employees in the
maintenance, presence, use or removal of such attachments. The intent of this
provision is to protect Seward against claims, demands, losses and damages
which would not have arisen but for Chugach’s use of Seward facilities under
this Agreement.

          (d)
With respect to claims by third parties, including employees, agents, or
contractors of Seward or Chugach, Seward shall indemnify Chugach against any
and all claims and demands for damages to property, including any environmental
damage for which recovery is sought, or injury or death to persons, including
any payments made under any workmen’s compensation law or any plan for
employees’ disability and death benefits, which may arise out of or be caused
by any negligence of Seward, its agents, contractors, or employees in the maintenance,
presence, use or removal of its

JOINT USE AGREEMENT

PAGE 10 OF 16 

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
 2007

	
 

	
 

	
Pursuant to:

	
Page 32 of
 59

	
U-06-056(6)

	
 

	
 

	
 

	
 

	
RECEIVED

JAN 22 2007

STATE OF ALASKA

REGULATORY COMMISSION OF ALASKA  

facilities in connection with the common use poles
and its attachments thereto. The intent of
this provision is to protect Chugach against
claims, demands, losses and damages which would not have arisen but for Seward’s activities in connection with
its facilities on the common use
pole line.

ARTICLE IX. COST OF ATTACHMENT

          The
parties agree that Chugach will pay no costs to Seward for the right to
be attached to the common use poles between Dave’s Creek Substation and Lawing except for those
costs set
forth elsewhere in this Agreement. The parties agree to such an arrangement despite any
rulings or regulations of the Alaska Public Utilities Commission to the contrary. 

ARTICLE X. ASSIGNMENT OF RIGHTS 

          Except
as otherwise provided in this Agreement, neither party hereto shall assign or otherwise dispose of this Agreement or any
of its rights or interests hereunder, or in any of the commonly used poles, or the attachments or
rights-of-way covered by this
Agreement, to any fire, corporation or individual, without the written consent of the other party, except to
the United States of America or any
agency thereof; provided however, that nothing herein contained shall
prevent or limit the right of either party
to lease or transfer any or all of its property, rights, privileges, and franchises, to another corporation organized
for the purpose of conducting a business of the same general character as that
of such party, to mortgage any or all of it property, rights, privileges, or franchises, or to enter into any merger or
consolidation. In the case of foreclosure
of such mortgage; or in case of lease,
transfer, merger, or consolidation, its rights and obligations hereunder shall
pass to and be acquired and assured by the transferee, lessee, assignee,
merger or consolidating company as the case
may be.

JOINT USE AGREEMENT

PAGE
11 of 16

	
 

	
 

	
 

	
 

	
 

	
Effective:

 February
 27, 2007

	
Pursuant
 to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page
 33 of 59

	
 

	
 

	
 

	
RECEIVED

JAN 22 2007

STATE OF ALASKA

REGULATORY COMMISSION OF ALASKA  

ARTICLE XI. UNCONTROLLABLE
FORCES 

          An
uncontrollable force shall mean an act
of God, act (ILLEGIBLE) omission of government, failure of or threat of failure of facility, unscheduled maintenance
and repair, labor or material shortage, strike, lockout, or other industrial
disturbances, act of the public enemy, war, blockade, insurrection, riot,
epidemic, land­slide, avalanche, earthquake, fire, storm, lightening, flood, varbout, civil disturbance,
restraint by court order or public authority, action or nonaction by or inability to obtain
necessary authorization
or approval from any governmental agency or authority, and any other act or
omission similar to the riot
herein enumerated.
Each of these matters enumerated constitutes or uncontrollable force to the extent that it is not
within the reasonable
control of the Affected party, and to the extent that such party by the exercise
of due diligence is unable to
overcome it.
Strikes, lockouts, and other labor disturbances shall be considered
uncontrollable forces and nothing in this Agreement shall require either party to
settle a labor dispute against its best judgment.

          In
the event either party, by reason of an uncontrol­lable force, is rendered
unable, wholly or in part, to perform its obligations under this Agreement, then upon said
party giving notice
and particulars of such uncontrollable force, its obligation to perform (other
than the obligation to pay money) shall be suspended during the continuance of any inability so caused, but for no longer
period, and the affects of such cause shall, so far as possible, be remedied with all reasonable dispatch; provided, however,
that the settlement of labor disputes shall be considered wholly within the
discretion of the party involved. The affected party shall not be responsible for its delay in performance under this Agreement
during delays caused by an
uncontrollable force, nor shall such
uncontrollable force give rise to claim for damages or constitute default.

JOINT
USE AGREEMENT

PAGE 12 Of 16

	
 

	
 

	
 

	
 

	
 

	
Effective:

 February
 27, 2007

	
Pursuant
 to:

	
 

	
 

	
U-06-056(6)

	
 

	
Page
 34 of 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
ARTICLE XII. BREACE AND WAIVER:

	
SEVERABILITY: ARTICLE LEADINGS

          (a)
The failure of either Chugach or Seward to enforce any provision of this Agreement
or the waiver thereof in any instance shall not be construed as a general
waiver or relinquishment on its part of any such provision but the same shall
nevertheless be and remain in full force and effect.

          (b)
The Article headings contained in this Agreement are for convenience and
reference, and are not intended to define or limit the scope of any provision
of this Agreement.

          (c)
In the event that any provision of this agreement should for any reason be held
invalid ineffective, unenforceable or contrary to public policy, the remainder
of this Agreement shall remain in full force and effect. With respect to any
provision of this Agreement that may be so (ILLEGIBLE), the parties shall in good
faith attempt to negotiate any required replacement provision.

ARTICLE XIII. PAYMENT OF TAXES

          Each
party shall pay all taxes and assessments lawfully levied in its own property
upon said commonly used poles, and the taxes and the assessments which levied on said
common poles shall be paid by Seward, but any tax, fee, or charge levied on
Seward’s poles solely because of their use by Chugach shall be paid by Chugach.

ARTICLE XIV. SERVICE OF DOCUMENTS

          Whenever
in this Agreement an application, notice, or communication is provided or
required to be given by either party to the other, such application, notice or
communication shall be in writing and transmitted by certified United States
mail, return receipt requested, or by personal delivery:

          (a)
For Chugach, by mail to:

JOINT USE
AGREEMENT

PAGE: 13 of 16

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
  2007

	
 

	
 

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 35 of
  59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
 

	
          General
  Manager 

	
          Chugach
  Electric Association, Inc.

	
          P.O.
  Box 6300

	
          Anchorage,
  Alaska 99502

	
 

	
or by
  personal delivery to:

	
 

	
          General
  Manager

	
          Chugach
  Electric Association, Inc.

	
          5601
  Minnesota Drive 

	
          Anchorage,
  Alaska 99502

	
 

	
(b) For
  Seward, by mail or personal delivery to:

	
 

	
          City
  Manager

	
          City
  of Seward

	
          P.O. Box 337

	
          Seward,
  Alaska 99664

or to such
other address as either party hereto may, from time to time, designate for
that purpose. Whenever a transmittal required to be submitted by a specific
date hereunder is delivered by mail as above provided, it shall be considered
timely submitted if deposited in the mail on or before the specified date.

ARTICLE XV. CONSTRUCTION

          This
Agreement shall be (ILLEGIBLE) to have been jointly drafted by Seward and Chugach.

ARTICLE XVI. EXISTING AGREEMENT.

INTEGRATION CLAUSE, AND AMENDMENTS

          (a)
This agreement supersedes any and all previous oral, written, or implied
agreements, promises, or contracts between the parties hereto and constitutes
henceforth the entire agreement between the parties and may not be amended
except by written amendments executed on behalf of the parties hereto and
approved by the Rural Electrification Administration (hereinafter “REA”)
Administrator.

          (b)
The parties intend this Agreement to be a fully integrated contract.

          (c)
This Agreement may be amended only by written amendment signed by authorized
representatives of Chugach and Seward, approved by the respective Boards of
Directors of the parties, and 

JOINT USE
AGREEMENT

PAGE:14 of 16

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
  2007

	
 

	
 

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 36 of
  59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

approved by
the REA Administrator. This Agreement may not be amended by oral agreements or
by a course of dealing between the parties.

ARTICLE XVII. TERM OF AGREEMENT

          This
Agreement shall remain in effect until terminated at the end of twenty-five
(25) years from the date hereof or thereafter upon the giving of written notice
to the other party of not less than three (3) years prior to the date of
termination. 

          The
termination of this Agreement shall not terminate the access rights of Chugach
to the easements and rights of way which it is party to between Dave’s Creek
Substation and Lawing. The termination of this Agreement shall not terminate the
right of Chugach to have its distribution underbuild attached to the
common use poles owned by Seward. It is the intent of this provision that any
termination of the joint-use Agreement not be interpreted to terminate either
chugach’s access rights to the assements both public and private, which it has
possessed during the course of this Agreement of Chugach’s right to have its
distribution under build attached to the common-use poles owned by Seward.

ARTICLE XVIII. COLLECTIVE BARGAINING
AGREEMENTS

          Seward
agrees that it will not cause Chugach to violate any collective bargaining
agreement to which Chugach may be party.

ARTICLE XIX. COMPLIANCE WITH RULES AND
REGULATIONS

          Both
parties agree that all work done in connection with this project will comply
with the applicable rules and regulations of all governmental agencies having
jurisdiction over the subject matter, including the applicable bulletins of the
Rural Electrification Administration. In particular, all environmental rules
and regulations of governmental entities which are applicable in connection with
this Agreement shall be followed.

JOINT USE
AGREEMENT

PAGE:15 of 16

	
 

	
 

	
 

	
Effective:

	
 

	
February 27,
  2007

	
 

	
 

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 37 of
  59

	
 

	
 

	
 

	
RECEIVED

 

	
 

	
JAN 22 2007

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY
COMMISSION OF ALASKA 

ARTICLE XX. INTERPRETATION OF AGREEMENT

          This
Agreement shall be interpreted according to the laws of the State of Alaska.
Any legal action between the partie pertaining to this Agreement shall have
venue in the Third Judicial District of the State of Alaska.

ARTICLE XXI. APPROVAL OF ADMINISTRATION

          This
Agreement‚ and any amendment thereof, shall be (ILLEGIBLE) effect or subject to the
condition that, during any period (ILLEGIBLE) which
Seward or Chugach is a borrower from the Rural Electrification Administration,
the Agreement and any amendment thereof shall have the approval in writing of
the Administrator of the (ILLEGIBLE) Electrification Administration. The parties
shall jointly submit the Agreement for approval and use their best efforts to
obtain all approvals required by the Agreement.

          IN
WITNESS WHEREOF, the parties hereto, have caused these presents to be executed in
triplicate, and their corporate seals to be affixed thereto by their respective
officers thereunto duly authorized, on the 20th day of September,
1984.

	
 

	
 

	
 

	
          (Seal)

	
 

	
 

	
ATTEST:

	

	

	
 

	
 

	
          (Seal)

	
 

	
 

	
ATTEST:

	

	

	
 

	
 

	
 

	
CITY
  OF SEWARD

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	

	
 

	

	
 

	
 

	
Title: 

	
General Manager

	
 

	
 

	
 

	
CHUGACH ELECTRIC ASSOCIATION,
  INC.

	
 

	
 

	
 

	
By:

	

	
 

	

	
Title: 

	
General Manager

JOINT USE AGREEMENT 

PAGE 16 of 16

	
 

	
 

	
 

	
Effective: 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 38 of 59 

	
 

	
 

	
 

	
RECEIVED

 

	
 

	
JAN
  22 2007

	
 

	
STATE
OF ALASKA 

	
 

	
REGULATORY
COMMISSION OF ALASKA 

RESOLUTION

          BE
IT RESOLVED that the General Manager is hereby authorized and directed, for and
on behalf of the Association, to execute and attest the form of the
Right-of-Way Access Agreement with the City of Seward for the construction of
the 115 KV transmission line from Daves Creek Substation to Lawing.

CERTIFICATION

          I, R. Marchine Dexter, do
hereby certify that I am (ILLEGIBLE) Secretary of Chugach Electric Association, Inc. (ILLEGIBLE) electric non-profit (ILLEGIBLE) membership corporation
organized and (ILLEGIBLE) under the laws of the State of Alaska, that the foregoing is a complete and correct copy of a resolution (ILLEGIBLE) meeting of the Board of Directors
of this corporation duly and properly (ILLEGIBLE) and held on the 19th day of September, 1984 (ILLEGIBLE) was present (ILLEGIBLE) the meeting that the resolution
is not forth in the (ILLEGIBLE) of the meeting and has not been (ILLEGIBLE) or modified. 

          IN
WITNESS WHEREOF, I have hereunto subscribed my name and offered (ILLEGIBLE) of this corporation this 19th day of September, 1984.

	
 

	
 

	
 

	

	
 

	

	
(ILLEGIBLE)

	
Secretary

	
 

	
 

	
 

	
Effective: 

	
 

	
February 27, 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 39 of 59

	
 

	
 

	
 

	
RECEIVED

 

	
 

	
JAN 22 2007

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

SEWARD NET BILLING AGREEMENT 

Dated June 7, 1991

	
 

	
 

	
 

	
1.

	
PARTIES

	
 

	
 

	
 

	
The parties to this
  Agreement are Chugach Electric Association, Inc. (Chugach), an Alaska
  nonprofit electric co-operative membership organization having its offices in
  Anchorage, Alaska, and the City of Seward (Seward), an Alaska Municipal
  Corporation.

	
 

	
 

	
2.

	
TERM

	
 

	
 

	
 

	
a)

	
This Agreement shall
  become effective when approved by (a) the Rural Electrification
  Administration of the United States Department of Agriculture and (b) the Alaska Public Utilities Commission, if
  Chugach, upon inquiry, determines that such approvals are required or if no
  such approval is necessary, on the last date of execution.

	
 

	
 

	
 

	
 

	
b)

	
This Agreement shall
  remain in effect so long as Chugach provides power to Seward under the
  Wholesale Power Agreement between Chugach and Seward signed on August 27,
  1984 and September 27, 1984 by the respective representatives of the parties,
  as amended (hereinafter “1984 Wholesale Power Agreement”) or under any
  successor agreement under which Chugach provides power to Seward.

	
 

	
 

	
 

	
3.

	
AGREEMENT

	
 

	
 

	
 

	
a)

	
Power from Seward’s share
  of the Bradley Lake Hydroelectric Project.
  So long as this Agreement continues to apply, Chugach shall be entitled to
  schedule the generation of and to receive from Seward any power which is
  produced by the Bradley Lake Hydroelectric Project and which Seward is
  entitled to receive under the Bradley Lake Power Sales Agreement and related
  agreements governing the disposition of power from the Bradley Lake
  Hydroelectric Project.

	
 

	
 

	
 

	
 

	
b)

	
Treatment of Bradley Lake
  power for purposes of power supply and rate making. For purposes of supplying and making
  rates for power sold to Seward, Chugach will be entitled to co-mingle any
  power Chugach receives from Seward under Section 3 (a) of this Agreement with
  all other electric power available to Chugach.

	
 

	
 

	
 

	
 

	
c)

	
Reimbursement of costs
  through net billing.
  Seward shall be obligated to pay the costs of power it has committed 

	
 

	
 

	
Chugach/Seward Net Billing
  Agreement 1991

	
Page
  1

	
 

	
 

	
 

	
ATTACHMENT B

	
 

	
 

	
 

	
Effective:
  

	
 

	
February 27,
  2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 40 of 59

	
 

	
 

	
 

	
RECEIVED

 

	
 

	
JAN 22 2007

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
 

	
 

	
 

	
to purchase from the
  Bradley Lake Hydroelectric Project (as stated in the Bradley Lake
  Hydroelectric Project Power Sales Agreement) in the same manner as if this
  Agreement did not exist, and without this Agreement being treated as an
  assignment of Seward’s share of the Bradley Lake Project to Chugach. However,
  Chugach will reimburse Seward for any costs actually incurred by Seward
  pursuant to the Bradley Lake Hydroelectric Project Power Sales Agreement by
  crediting to Seward’s account
  with Chugach those amounts paid by Seward under the Bradley Lake
  Hydroelectric Project Sales Agreement and billing Seward for the net amounts
  owed to Chugach. The effect of such billing credits shall be to reduce the
  net amounts that Seward is otherwise obligated to pay Chugach for power
  purchased from Chugach under the 1984 Wholesale Power Agreement.

	
 

	
 

	
 

	
4.

	
RELATIONSHIP TO OTHER
  AGREEMENTS

	
 

	
 

	
 

	
This Agreement is in the
  nature of an ancillary agreement to the existing 1984 Wholesale Power
  Agreement, as amended, the Bradley Lake Hydroelectric Project Power Sales
  Agreement and the Bradley Lake Hydroelectric Project Services Agreement.
  This Agreement is intended to operate in conjunction with these Agreements
  and does not in any way alter the parties’ obligations under these
  Agreements.

	
 

	
 

	
 

	
IN WITNESS WHEREOF, the
  parties have caused this Agreement to be executed by their authorized
  representatives on this date first set forth above.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CHUGACH ELECTRIC ASSOCIATION,
  INC.

	
 

	
THE CITY OF SEWARD

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By

	

	
 

	
By

	

	
 

	

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
As

	
          General
Manager

	
 

	
As

	
          City
  Manager

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Date

	
          9-14-91
  

	
 

	
Date

	
          8-23-91

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
netbill.3

	
 

	
APPROVED AS TO FORM:

	
 

	
 

	
 

	

	
 

	

	
 

	
Julian Mason, City Attorney

	
 

	
 

	
Chugach/Seward Net Billing
  Agreement 1991

	
Page
  2

	
 

	
 

	
 

	
Effective:
  

	
 

	
February 27,
  2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 41 of 59

	
 

	
 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
 

	
 

	
STATE
OF ALASKA

REGULATORY COMMISSION OF ALASKA  

	
 

	
 

	
 

	
Sponsored
 By: Schaefermeyer

CITY OF SEWARD, ALASKA

RESOLUTION NO. 91 - 095

A RESOLUTION OF THE CITY COUNCIL OF THE
CITY

OF
SEWARD, ALASKA, APPROVING A NET BILLING
AGREEMENT
WITH CHUGACH ELECTRIC ASSOCIATION

          WHEREAS,
the city of Seward is a signatory of the Bradley Lake Hydroelectric Power
Agreement and owns a one percent (1%) share of the electrical power generated
by Bradley Lake Hydroelectric Dam; and

          WHEREAS,
the city of Seward is obligated to pay a one percent (1%) share of the
amount the railbelt utilities are obligated to pay to the Alaska Energy
Authority (AEA) for their share of the construction cost of the Bradley Lake
Dam; and

          WHEREAS,
the city of Seward has an existing wholesale agreement with Chugach Electric
Association (CEA) and currently purchases all of its electricity from CEA under
that agreement; and

          WHEREAS,
it would be difficult and costly for the city of Seward to independently manage
its one percent (1%) share of Bradley Lake power; and

          WHEREAS,
under terms of a proposed Net Billing Agreement between the city of Seward and
CEA, CEA will manage the city’s share of the Bradley Lake power at no additional
cost to the city, except that the wholesale rate will be increased to reflect
the APUC approved wholesale rate reflecting the cost of commingling Bradley
Lake power with CEA generated power;

          NOW,
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA,
that:

          Section
1. The city Manager is hereby authorized to execute a Net Billing Agreement
with Chugach Electric Association as outlined above. A copy of the agreement is
attached and incorporated herein by reference.

          Section
2. This agreement shall take effect upon approval of the Board of Directors
of the Chugach Electric Association and approval of this resolution by the
Seward City Council.

          Section 3. This resolution shall take
effect immediately upon its adoption.

          PASSED
AND APPROVED by the City Council of the city of Seward, Alaska, this 12th day
of August, 1991.

- 1 -

	
 

	
 

	
 

	
Effective:
 

	
 

	
February
 27, 2007 

	
Pursuant
 to:

	
 

	
U-06-056(6)

	
Page
 42 of 59 

	
 

	
 

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
CITY
OF SEWARD ALASKA

RESOLUTION NO 1-095  

	
 

	
STATE
OF ALASKA

REGULATORY COMMISSION OF ALASKA 

	
 

	
 

	
 

	
THE CITY OF SEWARD,
 ALASKA

	
 

	
 

	
 

	

	
 

	

	
 

	
David
 L. Hilton, Mayor

	
 

	
 

	
AYES:

	
Burgess,
 Hilton, Krasnansky, Meehan, Sieminski and Simutis

	
NOES:

	
None

	
ABSENT:

	
Dunham

	
ABSTAIN:

	
None

	
 

	
 

	
 

	
ATTEST:

	
 

	
APPROVED AS TO FORM:

	
 

	
 

	
 

	
 

	
 

	
Perkins
 Coie, Attorneys for the

 city of Seward, Alaska

	
 

	
 

	
 

	

	
 

	

	

	
 

	

	
Linda
 S. Murphy, CMC/AAE

	
 

	
Fred
 B. Arvidson

	
City
 Clerk

	
 

	
City
 Attorney

	
 

	
 

	
 

	
(City
 Seal)

	
 

	
 

	
 

	
 

	
APPROVED AS TO FORM:

	
 

	
 

	
 

	
 

	
 

	
Bailey & Mason,
 Attorneys for the city of

 Seward, Alaska

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
Julian Mason
City Attorney

- 2 -

	
 

	
 

	
 

	
Effective:
 

	
 

	
February
 27, 2007 

	
Pursuant
 to:

	
 

	
U-06-056(6)

	
Page
 43 of 59 

	
 

	
 

	
 

	
RECEIVED  

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA  

	
 

	
REGULATORY COMMISSION OF ALASKA  

Exhibit 1 

Chugach Electric Association, Inc.

Calculation
of 30 Percent Reserve Capacity & Energy Allocation Factors

Test
Year Ending December 31, 2000

Docket
U-96-37; Compliance with 3AAC48.275

	
 

	
 

	
 

	
 

	
 

	
Determination of Available System
  Capacity

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total
  Chugach System Installed Capacity

	
 

	
 

	
534,400 

	
 

	
Required
  30 Percent Reserves: 534,400 -
  (534,400 / I_30)

	
 

	
 

	
123,323 

	
 

	
Remaining
  Capacity

	
 

	
 

	
411,077 

	
 

	
Less
  Test Year Coincident Peak

	
 

	
 

	
366,474 

	
 

	
 

	
 

	

	

	
 

	
Available
Capacity to All Classes Except HEA

	
 

	
 

	
44,603 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach
Retail

	
 

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	
 

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Street/Yrd.

  Lighting

	
 

	
Total Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Reserve Capacity (Demand) Allocator - DD_01

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Coincident
Peak

	
 

	
 

	
293,474

	
 

	
 

	
191,126

	
 

	
 

	
103,318

	
 

	
 

	
13,682

	
 

	
 

	
72,989

	
 

	
 

	
1,136

	
 

	
 

	
102,348

	
 

	
 

	
—

	
 

	
 

	
94,317

	
 

	
 

	
8,031

	
 

	
TY Coincident
Peak - Percent

	
 

	
 

	
100.00

	
%

	
 

	
65.l3

	
%

	
 

	
35.21

	
%

	
 

	
4.66

	
%

	
 

	
24.87

	
%

	
 

	
0.39

	
%

	
 

	
34.87

	
%

	
 

	
—

	
 

	
 

	
32.14

	
%

	
 

	
2.74
  

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Allocation of
Available Capacity

	
 

	
 

	
44,603

	
 

	
 

	
29,048

	
 

	
 

	
15,702

	
 

	
 

	
2,079

	
 

	
 

	
11,093

	
 

	
 

	
173

	
 

	
 

	
15,555

	
 

	
 

	
—

	
 

	
 

	
14,335

	
 

	
 

	
1,221

	
 

	
HEA Contract
Capacity

	
 

	
 

	
73,000

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
73,000

	
 

	
 

	
73,000

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Subtotal

	
 

	
 

	
411,077

	
 

	
 

	
220,173

	
 

	
 

	
119,020

	
 

	
 

	
15,762

	
 

	
 

	
84,082

	
 

	
 

	
1,309

	
 

	
 

	
190,903

	
 

	
 

	
73,000

	
 

	
 

	
108,652

	
 

	
 

	
9,252

	
 

	
30 Percent
Reserves

	
 

	
 

	
123,323

	
 

	
 

	
66,052

	
 

	
 

	
35,706

	
 

	
 

	
4,729

	
 

	
 

	
25,225

	
 

	
 

	
393

	
 

	
 

	
57,271

	
 

	
 

	
21,900

	
 

	
 

	
32,595

	
 

	
 

	
2,775

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Total System
Installed Capacity 

	
 

	
 

	
534,400
  

	
 

	
 

	
286,226
  

	
 

	
 

	
154,726
  

	
 

	
 

	
20,490
  

	
 

	
 

	
109,307

	
 

	
 

	
1,702

	
 

	
 

	
248,174

	
 

	
 

	
94,900

	
 

	
 

	
141,247

	
 

	
 

	
12,027

	
 

	
Reserve
Capacity Allocator

	
 

	
 

	
100.0000

	
%

	
 

	
53.5602

	
%

	
 

	
28.9533

	
%

	
 

	
3.8342

	
%

	
 

	
20.4542

	
%

	
 

	
0.3185

	
%

	
 

	
46.4398

	
%

	
 

	
17.7582

	
%

	
 

	
26.4310

	
%

	
 

	
2.2506

	
%

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Reserve Capacity (Demand) Allocator - DD_06 (Calculation with no reserves  assigned to Seward)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Coincident
Peak

	
 

	
 

	
285,443

	
 

	
 

	
191,126

	
 

	
 

	
103,318

	
 

	
 

	
13,682

	
 

	
 

	
72,989

	
 

	
 

	
1,136

	
 

	
 

	
94,317

	
 

	
 

	
—

	
 

	
 

	
94,317

	
 

	
 

	
—

	
 

	
TY Coincident
Peak - Percent

	
 

	
 

	
100.00

	
%

	
 

	
66.96

	
%

	
 

	
36.20

	
%

	
 

	
4.79

	
%

	
 

	
25.57

	
%

	
 

	
0.40

	
%

	
 

	
33.04

	
%

	
 

	
—

	
 

	
 

	
33.04

	
%

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Allocation of
Available Capacity

	
 

	
 

	
44,603

	
 

	
 

	
29,868

	
 

	
 

	
16,144

	
 

	
 

	
2,138

	
 

	
 

	
11,405

	
 

	
 

	
178

	
 

	
 

	
14,738

	
 

	
 

	
—

	
 

	
 

	
14,738

	
 

	
 

	
—
  

	
 

	
Capacity
Assigned to HEA and SES 

	
 

	
 

	
81,031
  

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
81,031

	
 

	
 

	
73,000

	
 

	
 

	
—

	
 

	
 

	
8,031

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Subtotal

	
 

	
 

	
411,077

	
 

	
 

	
220,991

	
 

	
 

	
119,462

	
 

	
 

	
15,820

	
 

	
 

	
84,395

	
 

	
 

	
1,314

	
 

	
 

	
190,086

	
 

	
 

	
73,000

	
 

	
 

	
109,055

	
 

	
 

	
8,031

	
 

	
30 Percent
Reserves

	
 

	
 

	
123,323

	
 

	
 

	
66,297

	
 

	
 

	
35,839

	
 

	
 

	
4,746

	
 

	
 

	
25,318

	
 

	
 

	
394

	
 

	
 

	
57,026

	
 

	
 

	
21,900

	
 

	
 

	
32,716

	
 

	
 

	
2,409

	
 

	
Assignment of
SES Reserves

	
 

	
 

	
0

	
 

	
 

	
1,613

	
 

	
 

	
872

	
 

	
 

	
115

	
 

	
 

	
616

	
 

	
 

	
10

	
 

	
 

	
(1,613

	
)

	
 

	
—

	
 

	
 

	
796

	
 

	
 

	
(2,409
  

	
)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Total System
Installed Capacity

	
 

	
 

	
534,400

	
 

	
 

	
288.901

	
 

	
 

	
156,173

	
 

	
 

	
20,682

	
 

	
 

	
110,329

	
 

	
 

	
1,718

	
 

	
 

	
245,498

	
 

	
 

	
94,900

	
 

	
 

	
142,567

	
 

	
 

	
8,031

	
 

	
Reserve
Capacity Allocator

	
 

	
 

	
100.0000

	
%

	
 

	
54.0609

	
%

	
 

	
29.2239

	
%

	
 

	
3.8701

	
%

	
 

	
20.6454

	
%

	
 

	
0.3215

	
%

	
 

	
45.9391

	
%

	
 

	
17.7582

	
%

	
 

	
26.6781

	
%

	
 

	
1.5028
  

	
%

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
Pursuant
  to:

	
Effective:

	
U-06-056(6)

	
February
  27, 2007

Page 44 of 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	

JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Exhibit 2 

	
 

	
 

	
Pursuant
  to:

	
Effective:

	
U-06-056(6)

	
February 27, 2007

Page 45 of 59

	
 

	
 

	
 

	
RECEIVED  

	
   

	
   

	
   

	
JAN 22 2007  

	
   

	
   

	
   

	
STATE OF ALASKA  

	
   

	
REGULATORY COMMISSION OF ALASKA  

Exhibit 2

Chugach Electric
Association, Inc.

Summary of Allocation
Factors

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Allocator 

	
 

	
Description 

	
 

	
Allocation Factor 

	
 

	
System Total 

	
 

	
Chugach Retail 

	
 

	
Chugach Wholesale 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
Total Retail 

	
 

	
Residential 

	
 

	
Small General 

	
 

	
Large General 

	
 

	
Street/Yrd.
Lighting 

	
 

	
Total
Wholesale 

	
 

	
HEA 

	
 

	
MEA 

	
 

	
SES 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy
 Allocators

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_01

	
 

	
Energy - All

	
 

	
kWh

	
 

	
2,252,962,341

	
 

	
l,l81,073,295

	
 

	
549,754,687

	
 

	
98,313,564

	
 

	
527,238,352

	
 

	
5,166,692

	
 

	
1,071,889,846

	
 

	
446,578,041

	
 

	
562,705,015

	
 

	
62,605,990

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
52.4231

	
%

	
24.4014

	
%

	
4.3637

	
%

	
23.4286

	
%

	
0.2293

	
%

	
47.5769

	
%

	
19.8218

	
%

	
24.9762

	
%

	
2.7788 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_02

	
 

	
Energy - Retail

	
 

	
kWh

	
 

	
1,l81,073,295

	
 

	
1,181,073,295

	
 

	
549,754,687

	
 

	
98,313,564

	
 

	
527,838,352

	
 

	
5,166,692

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
100.0000

	
%

	
46.5470

	
%

	
83.241

	
%

	
44.6914

	
%

	
0.4375

	
%

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_03

	
 

	
Energy - All,
 Excluding HEA

	
 

	
kWh

	
 

	
l,806,384,300

	
 

	
1,181,073,295

	
 

	
549,754,687

	
 

	
98,313,564

	
 

	
527,838,352

	
 

	
5,166.692

	
 

	
625,311,003

	
 

	
0

	
 

	
562,705,015

	
 

	
62,605,990

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
65.3833

	
%

	
30.4340

	
%

	
5.4426

	
%

	
29.2207

	
%

	
0.2860

	
%

	
34.6167

	
%

	
0.0000

	
%

	
31.1509

	
%

	
3.4658 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_04

	
 

	
Bradley
 Lake Generation

	
 

	
kWh

	
 

	
163,603,000

	
 

	
106,969,007

	
 

	
49,790,909

	
 

	
8,904,193

	
 

	
47,805,961

	
 

	
467,944

	
 

	
56,633,993

	
 

	
0

	
 

	
50,963,811

	
 

	
5,670,182

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
65.3833

	
%

	
30.4340

	
%

	
5.4426

	
%

	
29.2207

	
%

	
0.2860

	
%

	
34.6167

	
%

	
0.0000

	
%

	
31.1509

	
%

	
3.4638 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_05

	
 

	
Energy,
 Excluding Bradley Lake

	
 

	
kWh
Percentage

	
 

	
2,089,359,341

	
 

	
1,074,104,288

	
 

	
499,963,778

	
 

	
89,409,371

	
 

	
480,032,391

	
 

	
4,698,748

	
 

	
l,015,255,053

	
 

	
446,378,041

	
 

	
511,741,204

	
 

	
56,935,808

	
 

	
 

	
 

	
 

	
 

	
100.0000

	
%

	
51.4083

	
%

	
23.9290

	
%

	
4.2793

	
%

	
22.9751

	
%

	
0.2249

	
%

	
48.5917

	
%

	
21.3739

	
%

	
24.4927

	
%

	
2.7250 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_06

	
 

	
Energy,
 Excluding Bradley

	
 

	
kWh

	
 

	
2,032,423,533

	
 

	
1,074,l04,288

	
 

	
499,963,778

	
 

	
89,409,371

	
 

	
480.032,391

	
 

	
4,698,748

	
 

	
958,319,245

	
 

	
446,378,041

	
 

	
511,741,204

	
 

	
0

	
 

	
 

	
 

	
Lake
 and SES

	
 

	
Percentage

	
 

	
100.0000

	
%

	
52.8484

	
%

	
24.5994

	
%

	
4.3992

	
%

	
23.6187

	
%

	
0.2312

	
%

	
47.1516

	
%

	
21,9727

	
%

	
25.1789

	
%

	
0.0000

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
EE_07

	
 

	
Adj.
 kWh info Bradley (SES 1/3 Reduction)

	
 

	
Adjusted Total

	
 

	
2,070,380,738

	
 

	
1,064,074,392

	
 

	
495,295,158

	
 

	
88,574,474

	
 

	
475,549,888

	
 

	
4,654,872

	
 

	
1,006,306,347

	
 

	
442,407,932

	
 

	
506,962,607

	
 

	
56.935.808 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
31.3951

	
%

	
23.9229

	
%

	
4.2782

	
%

	
22.9692

	
%

	
0.2248

	
%

	
48.6049

	
%

	
21.3684

	
%

	
24.4864

	
%

	
2.7500 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand
 Allocators

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_0l

	
 

	
Demand - All

	
 

	
30% RC

	
 

	
934,400

	
 

	
286,226

	
 

	
154,726

	
 

	
20.490

	
 

	
109,307

	
 

	
1,702

	
 

	
248,174

	
 

	
94.900

	
 

	
141,247

	
 

	
12,027 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
53.5602

	
%

	
28.9533

	
%

	
3.8342

	
%

	
20.4342

	
%

	
0.3185

	
%

	
46.4398

	
%

	
17.7582

	
%

	
26.4310

	
%

	
2.2506 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_02

	
 

	
Demand -
 Retail

	
 

	
30% RC

	
 

	
286,226

	
 

	
286,226

	
 

	
154,726

	
 

	
20,490

	
 

	
109,307

	
 

	
l,702

	
 

	
__

	
 

	
__

	
 

	
__

	
 

	
__

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
100.0000

	
%

	
54.0574

	
%

	
7.1588

	
%

	
38.1892

	
%

	
0.5946

	
%

	
__

	
 

	
__

	
 

	
__

	
 

	
__

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_03

	
 

	
Demand
 - Wholesale

	
 

	
30% RC

	
 

	
248,174

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
248,174

	
 

	
94,900

	
 

	
141,247

	
 

	
12,027

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
100.0000

	
%

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
—

	
 

	
100.0000

	
%

	
38.2393

	
%

	
36.9143

	
%

	
4.8462 

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_04

	
 

	
Demand
 - All (Excluding HEA)

	
 

	
30% RC

	
 

	
439,500

	
 

	
286,226

	
 

	
154,726

	
 

	
20,490

	
 

	
109,307

	
 

	
1,702

	
 

	
153,274

	
 

	
0

	
 

	
141,247

	
 

	
12,027

	
 

	
 

	
 

	
 

	
Page 1 of
8 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
  2007

	
U-06-056(6)

	
 

	
 

	
Page 46 of
  59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Summary of Allocation Factors
Test Year Ended
December 31, 2000
Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail 

	
 

	
Chugach
Wholesale 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	
 

	
Allocator 

	
 

	
Description 

	
 

	
Allocation

Factor 

	
 

	
System Total 

	
 

	
Total Retail 

	
 

	
Residential 

	
 

	
Small General 

	
 

	
Large General 

	
 

	
Street/Yrd.

Lighting  

	
 

	
Total

Wholesale 

	
 

	
HEA 

	
 

	
MEA 

	
 

	
SES 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
65.1253

	
%

	
 

	
35.2051

	
%  

	
 

	
4.6622

	
%  

	
 

	
24.8708

	
%  

	
 

	
0.3872

	
%  

	
 

	
34.8747

	
%  

	
 

	
0.0000

	
%  

	
 

	
32.1381

	
%  

	
 

	
2.7365

	
%  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_05 

	
 

	
Retail Non-Coincident Peaks

	
 

	
 

	
kW

	
 

	
 

	
222,291

	
 

	
 

	
222,291

	
 

	
 

	
122,273

	
 

	
 

	
18,401

	
 

	
 

	
80,436

	
 

	
 

	
1,181

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
Demand

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%  

	
 

	
100.0000

	
%  

	
 

	
55.0058

	
%  

	
 

	
8.2779

	
%  

	
 

	
36.1852

	
%  

	
 

	
0.5311

	
%  

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DD_06

	
 

	
Demand - All (Seward Partial Req

	
 

	
 

	
kW

	
 

	
 

	
534,400

	
 

	
 

	
288,901

	
 

	
 

	
156,173

	
 

	
 

	
20,682

	
 

	
 

	
110,329

	
 

	
 

	
1,718

	
 

	
 

	
245,498

	
 

	
 

	
94,900

	
 

	
 

	
142,567

	
 

	
 

	
(ILLEGIBLE)

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%  

	
 

	
54.0609

	
%  

	
 

	
29.2239

	
%  

	
 

	
3.870l

	
%  

	
 

	
20.6454

	
%

	
 

	
0.3215

	
%

	
 

	
45.9391

	
%

	
 

	
17.7582

	
%

	
 

	
26.6781

	
%

	
 

	
(ILLEGIBLE)

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Revenue Allocators

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RV_01

	
 

	
Revenue - All

	
 

	
 

	
Revenue

	
 

	
$

	
147,616,379

	
 

	
$

	
98,536,690

	
 

	
$

	
51,288,657

	
 

	
$

	
9,384,689

	
 

	
$

	
36,538,936

	
 

	
$

	
1,324,408

	
 

	
$

	
49,079,690

	
 

	
$

	
19,060,244

	
 

	
$

	
27,252,051

	
 

	
$

	
2,767,395

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
66.7519

	
%

	
 

	
34.7446

	
%

	
 

	
6.3575

	
%

	
 

	
24.7526

	
%

	
 

	
0.8972

	
%

	
 

	
33.2481

	
%

	
 

	
12.9120

	
%

	
 

	
18.4614

	
%

	
 

	
1.8747

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RV_02

	
 

	
Revenue - Retail

	
 

	
 

	
Revenue

	
 

	
$

	
98,536,690

	
 

	
$

	
98,536,690

	
 

	
$

	
51,288,657

	
 

	
$

	
9,384,689

	
 

	
$

	
36,538,936

	
 

	
$

	
1,324,408

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
100.0000

	
%

	
 

	
52.0503

	
%

	
 

	
9.5241

	
%

	
 

	
37.0816

	
%

	
 

	
1.3441

	
%

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RV_03

	
 

	
Revenue - Wholesale

	
 

	
 

	
Revenue

	
 

	
$

	
49,079,690

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
$

	
49,079,690

	
 

	
$

	
19,060,244

	
 

	
$

	
27,252,051

	
 

	
$

	
2,767,395

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
100.0000

	
%

	
 

	
38.8353

	
%

	
 

	
55.5261

	
%

	
 

	
5.6386

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RV_04

	
 

	
Proforma Revenue - All

	
 

	
 

	
Revenue

	
 

	
$

	
117,696,302

	
 

	
$

	
82,491,505

	
 

	
$

	
44,047,261

	
 

	
$

	
8,084,930

	
 

	
$

	
29,103,656

	
 

	
$

	
1,255,657

	
 

	
$

	
35,204,797

	
 

	
$

	
13,688,581

	
 

	
$

	
19,666,901

	
 

	
$

	
1,849,316

	
 

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000
 

	
%

	
 

	
70.0884

	
%

	
 

	
37.4245

	
%

	
 

	
6.8693

	
%

	
 

	
24.7278

	
%

	
 

	
1.0669

	
%

	
 

	
29.9116

	
%

	
 

	
11.6304

	
%

	
 

	
16.7099

	
%

	
 

	
1.5713

	
%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
RV_05

	
 

	
Proforma Interest Income - All (Margins plus Depreciation)

	
 

	
 

	
Calculation

	
 

	
$

	
33,859,539

	
 

	
$

	
25,805,481

	
 

	
$

	
14,162,954

	
 

	
$

	
2,287,714

	
 

	
$

	
8,846,786

	
 

	
$

	
508,028

	
 

	
$

	
8,054,058

	
 

	
$

	
3,098,813

	
 

	
$

	
4,636,722

	
 

	
 

	
(ILLEGIBLE)

	
 

	
 

	
 

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000
 

	
%

	
 

	
76.2133

	
%

	
 

	
41.8285

	
%

	
 

	
6.7565

	
%

	
 

	
26.1279

	
%

	
 

	
1.5004

	
%

	
 

	
23.7867

	
%

	
 

	
9.1520

	
%

	
 

	
13.6940

	
%

	
 

	
(ILLEGIBLE)

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Chugach Retail Customer Allocators

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CA_01

	
 

	
Customer Accounting

	
 

	
 

	
No. Cust Wtd

	
 

	
 

	
77,190

	
 

	
 

	
77,190

	
 

	
 

	
62,069

	
 

	
 

	
7,895

	
 

	
 

	
5,940

	
 

	
 

	
1,286

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
(Weighted)

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
100.0000

	
%

	
 

	
80.4107

	
%

	
 

	
10.2280

	
%

	
 

	
7.6953

	
%

	
 

	
1.6660

	
%

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CA_02

	
 

	
Customer Plant

	
 

	
 

	
No. Cust

	
 

	
 

	
86,939

	
 

	
 

	
86,939

	
 

	
 

	
62,069

	
 

	
 

	
15,474

	
 

	
 

	
8,110

	
 

	
 

	
1,286

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
(Weighted)

	
 

	
 

	
Percentage

	
 

	
 

	
100.0000

	
%

	
 

	
100.0000

	
%

	
 

	
71.3937

	
%

	
 

	
17.7987

	
%

	
 

	
9.3284

	
%

	
 

	
1.4792

	
%

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
CA_03

	
 

	
Lighting

	
 

	
 

	
Direct

	
 

	
 

	
100.0000

	
%

	
 

	
100.0000

	
%

	
 

	
0.0000

	
%

	
 

	
15.0000

	
%

	
 

	
25.0000

	
%

	
 

	
60.0000

	
%

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
Page 2 of 8 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27, 2007

	
U-06-056(6)

	
 

	
 

	
Page 47 of 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA  

	
 

	
REGULATORY COMMISSION OF ALASKA  

Chugach Electric Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail 

	
  

	
Chugach Wholesale 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	
 

	
 

	
 

	
 

	
Description 

	
  

	
Allocation 

	
  

	
System Total 

	
  

	
Total Retail 

	
  

	
Residential 

	
  

	
Small General 

	
  

	
Large General 

	
  

	
Lighting 

	
  

	
Wholesale 

	
  

	
HEA 

	
  

	
MEA 

	
  

	
SES 

	
  

	
System Total 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production (excl. fuel/pp)

	
 

	
EE_01

	
 

	
$

	
8,524,595

	
 

	
$

	
4,468,859

	
 

	
$

	
2,080,122

	
 

	
$

	
371,992

	
 

	
$

	
1,997,196

	
 

	
$

	
19,549

	
 

	
$

	
4,055,736

	
 

	
$

	
1,689,729

	
 

	
$

	
2,129,122

	
 

	
$

	
236,884

	
 

	
$

	
8,524,595

	
 

	
Fuel/pp costs (w/o BL)

	
 

	
EE_05

	
 

	
$

	
40,168,953

	
 

	
$

	
20,650,179

	
 

	
$

	
9,612,048

	
 

	
$

	
1,718,939

	
 

	
$

	
9,228,857

	
 

	
$

	
90,336

	
 

	
$

	
19,518,774

	
 

	
$

	
8,585,681

	
 

	
$

	
9,838,474

	
 

	
$

	
1,094,619

	
 

	
$

	
40,168,953

	
 

	
Bradley Laka Purch Power

	
 

	
EE_04

	
 

	
$

	
5,495,161

	
 

	
$

	
3,592,917

	
 

	
$

	
1,672,396

	
 

	
$

	
299,077

	
 

	
$

	
1,605,725

	
 

	
$

	
15,717

	
 

	
$

	
1,902,245

	
 

	
$

	
0

	
 

	
$

	
1,711,792

	
 

	
$

	
190,432

	
 

	
$

	
5,495,16l

	
 

	
LT Interest Expense

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Production

	
 

	
 

	
 

	
$

	
54,188,709

	
 

	
$

	
28,711,955

	
 

	
$

	
13,364,566

	
 

	
$

	
2,390,008

	
 

	
$

	
12,831,779

	
 

	
$

	
125,603

	
 

	
$

	
25,476,754

	
 

	
$

	
10,275,410

	
 

	
$

	
13,679,389

	
 

	
$

	
l,521,955

	
 

	
$

	
54,188,709

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
EE_01

	
 

	
$

	
675,819

	
 

	
$

	
354,286

	
 

	
$

	
164,909

	
 

	
$

	
29,491

	
 

	
$

	
158,335

	
 

	
$

	
1,550

	
 

	
$

	
321,534

	
 

	
$

	
133,960

	
 

	
$

	
168,794

	
 

	
$

	
18,780

	
 

	
$

	
675,819

	
 

	
LT Interest Expense

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
EE_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Transmission

	
 

	
 

	
 

	
$

	
675,819

	
 

	
$

	
354,286

	
 

	
$

	
164,909

	
 

	
$

	
29,491

	
 

	
$

	
158,335

	
 

	
$

	
1,550

	
 

	
$

	
321,534

	
 

	
$

	
133,960

	
 

	
$

	
168,794

	
 

	
$

	
18,780

	
 

	
$

	
675,819

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
EE_02

	
 

	
$

	
3,340,841

	
 

	
$

	
3,340,841

	
 

	
$

	
1,555,063

	
 

	
$

	
278,095

	
 

	
$

	
1,493,069

	
 

	
$

	
14,615

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
3,340,841

	
 

	
LT Interest Expense

	
 

	
EE_02

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
EE_02

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
EE_02

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Distribution

	
 

	
 

	
 

	
$

	
3,340,841

	
 

	
$

	
3,340,841

	
 

	
$

	
1,555,063

	
 

	
$

	
278,095

	
 

	
$

	
1,493,069

	
 

	
$

	
14,615

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
3,340,841

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer Accounts

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer Accounts

	
 

	
EE_02

	
 

	
$

	
1,608,284

	
 

	
$

	
1,608,284

	
 

	
$

	
748,609

	
 

	
$

	
133,875

	
 

	
$

	
718,765

	
 

	
$

	
7,036

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,608,284

	
 

	
LT Interest Expense

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Consumer Accounts

	
 

	
 

	
 

	
$

	
1,608,284

	
 

	
$

	
1,608,284

	
 

	
$

	
748,609

	
 

	
$

	
133,875

	
 

	
$

	
718,765

	
 

	
$

	
7,036

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,608,284

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Less Fuel Surcharge Recovery

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Fuel Surcharge Revenues

	
 

	
Direct

	
 

	
$

	
29,441,802

	
 

	
$

	
15,763,978

	
 

	
$

	
7,369,906

	
 

	
$

	
1,317,973

	
 

	
$

	
7,076,100

	
 

	
$

	
0

	
 

	
$

	
13,677,824

	
 

	
$

	
5,325,838

	
 

	
$

	
7,507,018

	
 

	
$

	
844,967

	
 

	
$

	
29,441,802

	
 

	
Economy Sales Margins

	
 

	
EE_07

	
 

	
$

	
2,114,525

	
 

	
$

	
1,086,762

	
 

	
$

	
505,856

	
 

	
$

	
90,463

	
 

	
$

	
485,690

	
 

	
$

	
4,754

	
 

	
$

	
1,027,763

	
 

	
$

	
451,841

	
 

	
$

	
517,772

	
 

	
$

	
58,150

	
 

	
$

	
2,114,525

	
 

	
Wheeling Revenues

	
 

	
EE_07

	
 

	
$

	
521,251

	
 

	
$

	
267,897

	
 

	
$

	
124,698

	
 

	
$

	
22,300

	
 

	
$

	
119,727

	
 

	
$

	
1,172

	
 

	
$

	
253,353

	
 

	
$

	
111,383

	
 

	
$

	
127,636

	
 

	
$

	
14,334

	
 

	
$

	
521,251

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total Surcharge Recovery

	
 

	
 

	
 

	
$

	
32,077,578

	
 

	
$

	
17,118,638

	
 

	
$

	
8,000,460

	
 

	
$

	
1,430,736

	
 

	
$

	
7,681,516

	
 

	
$

	
5,926

	
 

	
$

	
14,958,940

	
 

	
$

	
5,889,062

	
 

	
$

	
8,152,426

	
 

	
$

	
917,451

	
 

	
$

	
32,077,578

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Less Economy Sales O&M

	
 

	
EE_01

	
 

	
$

	
619,463

	
 

	
$

	
324,742

	
 

	
$

	
151,158

	
 

	
$

	
27,032

	
 

	
$

	
145,132

	
 

	
$

	
1,421

	
 

	
$

	
294,721

	
 

	
$

	
122,789

	
 

	
$

	
154,718

	
 

	
$

	
17,214

	
 

	
$

	
619,463

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Energy Costs

	
 

	
 

	
 

	
$

	
27,116,6l3

	
 

	
$

	
16,571,986

	
 

	
$

	
7,681,529

	
 

	
$

	
1,373,701

	
 

	
$

	
7,375,300

	
 

	
$

	
141,456

	
 

	
$

	
10,544,627

	
 

	
$

	
4,397,359

	
 

	
$

	
5,541,038

	
 

	
$

	
606,070

	
 

	
$

	
27,116,613

	
 

	
 

	
 

	
 

	
Page 3 of 8 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27, 2007

	
U-06-056(6)

	
 

	
 

	
Page 48 of 59

	
 

	
 

	
 

	
RECEIVED

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail 

	
 

	
Chugach Wholesale 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Description 

	
 

	
Allocation 

	
 

	
System Total 

	
 

	
Total Retail 

	
 

	
Residential 

	
 

	
Small General 

	
 

	
Large General 

	
 

	
Lighting 

	
 

	
Wholesale 

	
 

	
HEA 

	
 

	
MEA 

	
 

	
SES 

	
 

	
System Total 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand
 Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
DD_06

	
 

	
$

	
18,208,558

	
 

	
$

	
9,843,708

	
 

	
$

	
5,321,256

	
 

	
$

	
704,687

	
 

	
$

	
3,759,233

	
 

	
$

	
58,533

	
 

	
$

	
8,364,850

	
 

	
$

	
3,233,521

	
 

	
$

	
4,857,689

	
 

	
$

	
273,640

	
 

	
$

	
18,208,558

	
 

	
LT Interest
 Expense

	
 

	
DD_06

	
 

	
$

	
7,377,358

	
 

	
$

	
3,988,266

	
 

	
$

	
2,155,954

	
 

	
$

	
285,510

	
 

	
$

	
1,523,087

	
 

	
$

	
23,715

	
 

	
$

	
3,389,093

	
 

	
$

	
1,310,090

	
 

	
$

	
1,968,136

	
 

	
$

	
110,868

	
 

	
$

	
7,377,358

	
 

	
Margins

	
 

	
DD_06

	
 

	
$

	
737,736

	
 

	
$

	
398,827

	
 

	
$

	
215,595

	
 

	
$

	
28,551

	
 

	
$

	
152,309

	
 

	
$

	
2,372

	
 

	
$

	
338,909

	
 

	
$

	
131,009

	
 

	
$

	
196,814

	
 

	
$

	
11,087

	
 

	
$

	
737,736

	
 

	
Refinancing
Transaction Costs

	
 

	
DD_06

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Production

	
 

	
 

	
 

	
$

	
26,323,652

	
 

	
$

	
14,230,801

	
 

	
$

	
7,692,805

	
 

	
$

	
1,018,748

	
 

	
$

	
5,434,628

	
 

	
$

	
84,619

	
 

	
$

	
12,092,852

	
 

	
$

	
4,674,619

	
 

	
$

	
7,022,638

	
 

	
$

	
395,594

	
 

	
$

	
26,323,652

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission - Excl. B/L

	
 

	
DD_01

	
 

	
$

	
12,725,141

	
 

	
$

	
6,815,612

	
 

	
$

	
3,684,345

	
 

	
$

	
487,913

	
 

	
$

	
2,602,827

	
 

	
$

	
40,527

	
 

	
$

	
5,909,529

	
 

	
$

	
2,259,762 

	
 

	
$

	
3,363,379

	
 

	
$

	
286,388

	
 

	
$

	
12,725,141

	
 

	
Transmission - Incl. B/L

	
 

	
DD_04

	
 

	
$

	
129,550

	
 

	
$

	
84,370

	
 

	
$

	
45,608

	
 

	
$

	
6,040

	
 

	
$

	
32,220

	
 

	
$

	
502

	
 

	
$

	
45,180

	
 

	
 

	
—

	
 

	
$

	
41,635

	
 

	
$

	
3,545

	
 

	
$

	
129,550

	
 

	
LT Interest
Expense

	
 

	
DD_01

	
 

	
$

	
7,545,142

	
 

	
$

	
4,041,194

	
 

	
$

	
2,184,566

	
 

	
$

	
289,399

	
 

	
$

	
1,543,299

	
 

	
$

	
24,030

	
 

	
$

	
3,503,948

	
 

	
$

	
1,339,885

	
 

	
$

	
1,994,254

	
 

	
$

	
169,809

	
 

	
$

	
7,545,142

	
 

	
Margins

	
 

	
DD_01

	
 

	
$

	
754,514

	
 

	
$

	
404,119

	
 

	
$

	
218,457

	
 

	
$

	
28,930

	
 

	
$

	
154,330

	
 

	
$

	
2,4,03

	
 

	
$

	
350,395

	
 

	
$

	
133,989

	
 

	
$

	
199,425

	
 

	
$

	
16,981

	
 

	
$

	
754,514

	
 

	
Refinancing
Transaction Costs

	
 

	
DD_01

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Transmission

	
 

	
 

	
 

	
$

	
21,154,347

	
 

	
$

	
11,345,295

	
 

	
$

	
6,132,976

	
 

	
$

	
812,182

	
 

	
$

	
4,332,676

	
 

	
$

	
67,461

	
 

	
$

	
9,809,052

	
 

	
$

	
3,733,636

	
 

	
$

	
5,598,693

	
 

	
$

	
476,723

	
 

	
$

	
21,154,347

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
DD_05

	
 

	
$

	
18,319,998

	
 

	
$

	
18,319,998

	
 

	
$

	
10,077,066

	
 

	
$

	
1,516,509

	
 

	
$

	
6,629,124

	
 

	
$

	
97,300

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
18,319,998

	
 

	
LT Interest
 Expense

	
 

	
DD_05

	
 

	
$

	
7,081,589

	
 

	
$

	
7,081,589

	
 

	
$

	
3,895,286

	
 

	
$

	
586,206

	
 

	
$

	
2,562,486

	
 

	
$

	
37,611

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
7,081,589

	
 

	
Margins

	
 

	
DD_05

	
 

	
$

	
4,460,021

	
 

	
$

	
4,460,021

	
 

	
$

	
2,433,271

	
 

	
$

	
369,196

	
 

	
$

	
1,613,867

	
 

	
$

	
23,638

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,460,021

	
 

	
Refinancing
Transaction Costs

	
 

	
DD_05

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Distribution

	
 

	
 

	
 

	
$

	
29,861,689

	
 

	
$

	
29,861,609

	
 

	
$

	
16,425,623

	
 

	
$

	
2,471,910

	
 

	
$

	
10,805,476

	
 

	
$

	
158,598

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
29,861,609

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer
 Accounts

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer
Accounts

	
 

	
DD_05

	
 

	
$

	
4,409,244

	
 

	
$

	
4,409,244

	
 

	
$

	
2,425,341

	
 

	
$

	
364,992

	
 

	
$

	
1,595,493

	
 

	
$

	
23,418

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,409,244

	
 

	
LT Interest
Expense

	
 

	
DD_05

	
 

	
$

	
379,366

	
 

	
$

	
379,366

	
 

	
$

	
208,673

	
 

	
$

	
31,403

	
 

	
$

	
132,274

	
 

	
$

	
2,015

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
379,366

	
 

	
Margins

	
 

	
DD_05

	
 

	
$

	
238,926

	
 

	
$

	
238,926

	
 

	
$

	
131,423

	
 

	
$

	
I9,778

	
 

	
$

	
86,456

	
 

	
$

	
1,269

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
238,926

	
 

	
Refinancing
Transaction Costs

	
 

	
DD_05

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Consumer Accounts

	
 

	
 

	
 

	
$

	
5,027,536

	
 

	
$

	
5,027,536

	
 

	
$

	
2,765,438

	
 

	
$

	
416,174

	
 

	
$

	
1,819,223

	
 

	
$

	
26,702

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
5,027,536

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Annualized
 Short-Term Interest Expense

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Retail

	
 

	
DD_02

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Wholesale

	
 

	
DD_03

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Short
Term Interest Expense

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Other

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Non-Operating
Margins - Interest

	
 

	
RV_05

	
 

	
($

	
703,808

	
)

	
($

	
536,395

	
)

	
($

	
294,393

	
)

	
($

	
47,553

	
)

	
($

	
183,890

	
)

	
($

	
10,560

	
)

	
($

	
167,413

	
)

	
($

	
64,412

	
)

	
($

	
936,379

	
)

	
($

	
6,621

	
)

	
($

	
703,808

	
)

	
Short-Term
Interest Expense

	
 

	
RV_05

	
 

	
$

	
1

	
 

	
$

	
1

	
 

	
$

	
1

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Other

	
 

	
 

	
 

	
($

	
703,807

	
)

	
($

	
536,395

	
)

	
($

	
294,392

	
)

	
($

	
47,553

	
)

	
($

	
183,890

	
)

	
($

	
10,560

	
)

	
($

	
167,412 

	
)

	
($

	
564,412

	
)

	
($

	
96,379

	
)

	
($

	
6,621

	
)

	
($

	
703,807

	
)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Demand Costs

	
 

	
 

	
 

	
$

	
81,663,338

	
 

	
$

	
59,928,846

	
 

	
$

	
32,722,450

	
 

	
$

	
4,671,461

	
 

	
$

	
22,208,114

	
 

	
$

	
326,821

	
 

	
$

	
2I,734,492

	
 

	
$

	
8,343,843

	
 

	
$

	
12,524,952

	
 

	
$

	
865,696

	
 

	
$

	
81,663,338

	
 

	
 

	
 

	
 

	
Page 4 of 8 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 49 of
 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Description

	
 

	
Allocation

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	
System Total

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Customer Plant

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Production

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Transmission

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
CA_02

	
 

	
$

	
2,438,997

	
 

	
$

	
2,438,997

	
 

	
$

	
1,741,291

	
 

	
$

	
434,109

	
 

	
$

	
227,519

	
 

	
$

	
36,078

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
2,438,997

	
 

	
LT Interest
Expense

	
 

	
 

	
CA_02

	
 

	
$

	
1,268,409

	
 

	
$

	
1,268,409

	
 

	
$

	
905,565

	
 

	
$

	
225,760

	
 

	
$

	
118,322

	
 

	
$

	
18,762

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,268,409

	
 

	
Margins

	
 

	
 

	
CA_02

	
 

	
$

	
798,851

	
 

	
$

	
798,851

	
 

	
$

	
570,329

	
 

	
$

	
142,185

	
 

	
$

	
74,520

	
 

	
$

	
11,817

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
798,851

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
CA_02

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Distribution

	
 

	
 

	
 

	
 

	
$

	
4,506,257

	
 

	
$

	
4,506,257

	
 

	
$

	
3,217,185

	
 

	
$

	
802,054

	
 

	
$

	
420,361

	
 

	
$

	
66,656

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,506,257

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer Accounts

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer
Accounts

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Consumer Accounts

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Customer
Plant Costs

	
 

	
 

	
 

	
 

	
$

	
4,506,257

	
 

	
$

	
4,506,257

	
 

	
$

	
3,217,185

	
 

	
$

	
802,054

	
 

	
$

	
420,361

	
 

	
$

	
66,656

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,506,257

	
 

	
 

	
 

	
 

	
 

	
Page 5 of 8 

	
 

	
 

	
Effective:

	
 

	
February 27,
  2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 50 of
  59

	
 

	
 

	
 

	
RECEIVED

	
 

	
JAN 22 2007

 

	
 

	
STATE OF ALASKA

	
 

	
REGULATORY COMMISSION OF ALASKA

Chugach
Electric Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a) 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Description

	
 

	
Allocation

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	
System Total

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Customer Accounting

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Production

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Transmission

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
Distribution

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Distribution

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
Consumer Accounts

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 Consumer
 Accounts

	
 

	
 

	
CA_01

	
 

	
$

	
4,335,010

	
 

	
$

	
4,335,010

	
 

	
$

	
3,485,811

	
 

	
$

	
443,385

	
 

	
$

	
333,592

	
 

	
$

	
72,222

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,335,010

	
 

	
LT Interest Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal - Consumer Accounts

	
 

	
 

	
 

	
 

	
$

	
4,335,010

	
 

	
$

	
4,335,010

	
 

	
$

	
3,485,811

	
 

	
$

	
443,385

	
 

	
$

	
333,592

	
 

	
$

	
72,222

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,335,010

	
 

	
 

	
Total Customer Accounting

	
 

	
 

	
 

	
 

	
$

	
4,335,010

	
 

	
$

	
4,335,010

	
 

	
$

	
3,485,811

	
 

	
$

	
443,385

	
 

	
$

	
333,592

	
 

	
$

	
72,222

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,335,010

	
 

	
 

	
 

	
 

	
Page 6 of 8 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27, 2007

	
U-06-056(6)

	
 

	
 

	
Page 51 of 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric
Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3A AC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Description

	
 

	
Allocation

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	
System Total

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Revenue

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Production

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Transmission

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Distribution

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Distribution

	
 

	
 

	
 

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer Accounts

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Consumer
Accounts

	
 

	
 

	
RV_02

	
 

	
$

	
310,474

	
 

	
$

	
310,474

	
 

	
$

	
161,603

	
 

	
$

	
29,570

	
 

	
$

	
115,129

	
 

	
$

	
4,173

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
310,474

	
 

	
LT Interest
Expense

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Margins

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
—

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Consumer Accounts

	
 

	
 

	
 

	
 

	
$

	
310,474

	
 

	
$

	
310,474

	
 

	
$

	
161,603

	
 

	
$

	
29,570

	
 

	
$

	
115,129

	
 

	
$

	
4,173

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
310,474

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total
Revenue

	
 

	
 

	
 

	
 

	
$

	
310,474

	
 

	
$

	
310,474

	
 

	
$

	
161,603

	
 

	
$

	
29,570

	
 

	
$

	
115,129

	
 

	
$

	
4,173

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
310,474

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Lighting

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Disribution

	
 

	
 

	
CA_03

	
 

	
$

	
703,918

	
 

	
$

	
703,918

	
 

	
$

	
0

	
 

	
$

	
105,588

	
 

	
$

	
175,980

	
 

	
$

	
422,351

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
703,918

	
 

	
LT Internet
Expenses

	
 

	
 

	
CA_03

	
 

	
$

	
319,920

	
 

	
$

	
319,920

	
 

	
$

	
0

	
 

	
$

	
47,988

	
 

	
$

	
79,980

	
 

	
$

	
191,952

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
319,920

	
 

	
Margin

	
 

	
 

	
CA_03

	
 

	
$

	
201,487

	
 

	
$

	
201,487

	
 

	
$

	
0

	
 

	
$

	
30,223

	
 

	
$

	
30,372

	
 

	
$

	
120,892

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
201,487

	
 

	
Refinancing
Transaction Costs

	
 

	
 

	
CA_03

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal -
Lighting

	
 

	
 

	
 

	
 

	
$

	
1,225,326

	
 

	
$

	
1,225,326

	
 

	
$

	
0

	
 

	
$

	
183,799

	
 

	
$

	
306,331

	
 

	
$

	
735,195

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,225,326

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Subtotal -
Revenue Requirement

	
 

	
 

	
 

	
 

	
$

	
119,157,017

	
 

	
$

	
86,877,898

	
 

	
$

	
47,268,577

	
 

	
$

	
7,503,971

	
 

	
$

	
30,758,826

	
 

	
$

	
1,346,524

	
 

	
$

	
32,279,119

	
 

	
$

	
12,741,362

	
 

	
$

	
18,065,991

	
 

	
$

	
1,471,766

	
 

	
$

	
119,157,017

	
 

	
 

	
 

	
 

	
 

	
 

	
Page 7 of 8 

	
 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 52 of
 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Phase II: Allocation of Test Year Costs

Test Year Ended December 31, 2000

Docket U-96-37; Compliance with 3AAC48.275(a)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
 

	
 

	
Description

	
 

	
Allocation

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	
System Total

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Other Operating
Revenue

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Late Payment
Fee

	
 

	
CA_01

	
 

	
$

	
248,508

	
 

	
$

	
248,508

	
 

	
$

	
199,827

	
 

	
$

	
25,417

	
 

	
$

	
19,123

	
 

	
$

	
4,140

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
248,508

	
 

	
Misc Service
Revenue

	
 

	
CA_01

	
 

	
$

	
472,715

	
 

	
$

	
472,715

	
 

	
$

	
380,113

	
 

	
$

	
48,349

	
 

	
$

	
36,377

	
 

	
$

	
7,876

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
472,715

	
 

	
Rental
Property

	
 

	
DD_05

	
 

	
$

	
254,148

	
 

	
$

	
254,148

	
 

	
$

	
139,796

	
 

	
$

	
21,038

	
 

	
$

	
91,964

	
 

	
$

	
1,350

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
254,148

	
 

	
Other Electric
Revenues

	
 

	
DD_05

	
 

	
$

	
389,143

	
 

	
$

	
389,143

	
 

	
$

	
214,051

	
 

	
$

	
32,213

	
 

	
$

	
140,812

	
 

	
$

	
2,067

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
389,143

	
 

	
Expense
Service Drop

	
 

	
CA_01

	
 

	
$

	
12,807

	
 

	
$

	
12,807

	
 

	
$

	
10,298

	
 

	
$

	
1,310

	
 

	
$

	
986

	
 

	
$

	
213

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
12,807

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total Other
Operating Revenue

	
 

	
 

	
 

	
 

	
$

	
1,377,320

	
 

	
$

	
1,377,320

	
 

	
$

	
944,085

	
 

	
$

	
128,327

	
 

	
$

	
289,262

	
 

	
$

	
15,646

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,377,320

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Revenue Requirement

	
 

	
—

	
 

	
$

	
117,779,697

	
 

	
$

	
85,500,578

	
 

	
$

	
46,324,492

	
 

	
$

	
7,375,643

	
 

	
$

	
30,469,565

	
 

	
$

	
1,330,878

	
 

	
$

	
32,279,119

	
 

	
$

	
12,741,362

	
 

	
$

	
18,065,991

	
 

	
$

	
1,471,766

	
 

	
$

	
117,779,697

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Proforma Test
Year Revenues

	
 

	
—

	
 

	
$

	
117,696,302

	
 

	
$

	
82,491,505

	
 

	
$

	
44,047,261

	
 

	
$

	
8,084,930

	
 

	
$

	
29,103,656

	
 

	
$

	
1,255,657

	
 

	
$

	
35,204,797

	
 

	
$

	
13,688,581

	
 

	
$

	
19,666,901

	
 

	
$

	
1,849,316

	
 

	
$

	
117,696,302

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Revenue
Deficiency/(Over-rec.)

	
 

	
 

	
 

	
 

	
$

	
83,395

	
 

	
$

	
3,009,074

	
 

	
$

	
2,277,231

	
 

	
($

	
709,287

	
)

	
$

	
1,365,909

	
 

	
$

	
75,221

	
 

	
($

	
2,925,678

	
)

	
($

	
947,219

	
)

	
($

	
1,600,910

	
)

	
($

	
377,550

	
)

	
$

	
83,395

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Percent Change
to Total Rates

	
 

	
—

	
 

	
 

	
0.07

	
%

	
 

	
3.65

	
%

	
 

	
5.17

	
%

	
 

	
(8.77

	
%)

	
 

	
4.69

	
%

	
 

	
5.99

	
%

	
 

	
(8.31

	
%)

	
 

	
(6.92

	
%)

	
 

	
(8.14

	
%)

	
 

	
(20.42

	
%)

	
 

	
0.07

	
%

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer
Charge Revenue

	
 

	
 

	
 

	
 

	
$

	
6,229,468

	
 

	
$

	
6,191,668

	
 

	
$

	
4,655,188

	
 

	
$

	
947,388

	
 

	
$

	
589,093

	
 

	
$

	
0

	
 

	
$

	
37,800

	
 

	
$

	
18,000

	
 

	
$

	
16,200

	
 

	
$

	
3,600

	
 

	
$

	
6,229,468

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Proforma TY
Revenue Less Customer Charge

	
 

	
 

	
 

	
 

	
$

	
111,466,834

	
 

	
$

	
76,299,837

	
 

	
$

	
39,392,074

	
 

	
$

	
7,137,543

	
 

	
$

	
28,514,563

	
 

	
$

	
1,255,657

	
 

	
$

	
35,166,997

	
 

	
$

	
13,670,581

	
 

	
$

	
19,650,701

	
 

	
$

	
1,845,716

	
 

	
$

	
111,466,834

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Percent Change
to Demand & Energy Rates

	
 

	
 

	
 

	
 

	
 

	
0.07

	
%

	
 

	
3.94

	
%

	
 

	
5.78

	
%

	
 

	
(9.94

	
%)

	
 

	
4.79

	
%

	
 

	
5.99

	
%

	
 

	
(8.32

	
%)

	
 

	
(6.93

	
%)

	
 

	
(8.15

	
%)

	
 

	
(20.46

	
%)

	
 

	
0.07

	
%

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
Page 8 of 8 

	
 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
  2007

	
U-06-056(6)

	
 

	
 

	
Page 53 of
  59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF
ALASKA 

	
 

	
REGULATORY
COMMISSION OF ALASKA  

Exhibit 3

	
 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 54 of 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
 

	
STATE OF
ALASKA 

	
 

	
REGULATORY
COMMISSION OF ALASKA 

Exhibit 3 

Chugach
Electric Association, Inc.

Unbundled 2000
TY Cost of Service Study Results

Consistent with Docket U-01-108, Order No. 3 (FMF-10)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	

	

	

	

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Costs

	
 

	
 $

	
54,188,709

	
 

	
 $

	
28,711,955

	
 

	
 $

	
13,364,566

	
 

	
 $

	
2,390,008

	
 

	
 $

	
12,831,779

	
 

	
 $

	
125,603

	
 

	
 $

	
25,476,754

	
 

	
 $

	
10,275,410

	
 

	
 $

	
13,679,389

	
 

	
 $

	
1,521,955

	
 

	
Less Surcharge
Recovery

	
 

	
($

	
32,077,578

	
)

	
($

	
17,118,638

	
)

	
($

	
8,000,460

	
)

	
($

	
1,430,736

	
)

	
($

	
7,681,516

	
)

	
($

	
5,926

	
)

	
($

	
14,958,940

	
)

	
($

	
5,889,062

	
)

	
($

	
8,152,426

	
)

	
($

	
917,451

	
)

	
Less Economy O&M

	
 

	
($

	
619,463

	
)

	
($

	
324,742

	
)

	
($

	
151,158

	
)

	
($

	
27,032

	
)

	
($

	
145,132

	
)

	
($

	
1,421

	
)

	
($

	
294,721

	
)

	
($

	
122,789

	
)

	
($

	
154,718

	
)

	
($

	
17,214

	
)

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
$

	
21,491,669

	
 

	
 $

	
11,268,575

	
 

	
 $

	
5,212,948

	
 

	
 $

	
932,240

	
 

	
 $

	
5,005,131

	
 

	
 $

	
118,256

	
 

	
 $

	
10,223,094

	
 

	
 $

	
4,263,560

	
 

	
 $

	
5,372,244

	
 

	
 $

	
587,290

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand Costs

	
 

	
 $

	
26,323,652

	
 

	
 $

	
14,230,801

	
 

	
 $

	
7,692,805

	
 

	
 $

	
1,018,748

	
 

	
 $

	
5,434,628

	
 

	
 $

	
84,619

	
 

	
 $

	
12,092,852

	
 

	
 $

	
4,674,619

	
 

	
 $

	
7,022,638

	
 

	
 $

	
395,594

	
 

	
Less Non-Operating Margins -
Int.

	
 

	
($

	
296,087

	
)

	
($

	
111,332

	
)

	
($

	
59,991

	
)

	
($

	
8,680

	
)

	
($

	
40,419

	
)

	
($

	
2,242

	
)

	
($

	
94,756

	
)

	
($

	
36,629

	
)

	
($

	
55,027

	
)

	
($

	
3,100

	
)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Wholesale Customer Charge
Adj.

	
 

	
($

	
18,900

	
)

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
($

	
18,900

	
)

	
($

	
9,000

	
)

	
($

	
8,100

	
)

	
($

	
1,800

	
)

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
 $

	
26,098,665

	
 

	
 $

	
14,119,469

	
 

	
 $

	
7,632,814

	
 

	
 $

	
1,010,068

	
 

	
 $

	
5,394,209

	
 

	
 $

	
82,378

	
 

	
 $

	
11,979,196

	
 

	
 $

	
4,628,991

	
 

	
 $

	
6,959,511

	
 

	
 $

	
390,694

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Costs

	
 

	
 $

	
18,900

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
18,900

	
 

	
 $

	
9,000

	
 

	
 $

	
8,100

	
 

	
 $

	
1,800

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total Production Costs

	
 

	
 $

	
47,689,233

	
 

	
 $

	
25,388,044

	
 

	
 $

	
12,845,762

	
 

	
 $

	
1,942,308

	
 

	
 $

	
10,399,340

	
 

	
 $

	
200,634

	
 

	
 $

	
22,221,190

	
 

	
 $

	
8,901,550

	
 

	
 $

	
12,339,856

	
 

	
 $

	
979,784

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Costs
Recoverable

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge Recovery

	
 

	
 $

	
30,216,928

	
 

	
 $

	
19,993,834

	
 

	
 $

	
12,845,762

	
 

	
 $

	
1,942,308

	
 

	
 $

	
5,005,131

	
 

	
 $

	
200,634

	
 

	
 $

	
10,223,094

	
 

	
 $

	
4,263,560

	
 

	
 $

	
5,372,244

	
 

	
 $

	
587,290

	
 

	
Demand Charge Recovery

	
 

	
 $

	
17,373,405

	
 

	
 $

	
5,394,209

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
5,394,209

	
 

	
 $

	
0

	
 

	
 $

	
11,979,196

	
 

	
 $

	
4,628,991

	
 

	
 $

	
6,959,511

	
 

	
 $

	
390,694

	
 

	
Customer Charge
Recovery

	
 

	
 $

	
18,900

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
0

	
 

	
 $

	
18,900

	
 

	
 $

	
9,000

	
 

	
 $

	
8,100

	
 

	
 $

	
1,800

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
 $

	
47,609,233

	
 

	
 $

	
25,388,044

	
 

	
 $

	
12,845,762

	
 

	
 $

	
1,942,308

	
 

	
 $

	
10,399,340

	
 

	
 $

	
200,634

	
 

	
 $

	
22,221,190

	
 

	
 $

	
8,901,550

	
 

	
 $

	
12,339,856

	
 

	
 $

	
979,784

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kWk Sales

	
 

	
 

	
2,133,277,945

	
 

	
 

	
1,088,195,582

	
 

	
 

	
509,797,768

	
 

	
 

	
91,168,000

	
 

	
 

	
487,229,314

	
 

	
 

	
4,791,170

	
 

	
 

	
1,045,082,363

	
 

	
 

	
436,111,794

	
 

	
 

	
549,517,153

	
 

	
 

	
59,453,416

	
 

	
Energy Rate

	
 

	
 $

	
0.01007

	
 

	
 $

	
0.01036

	
 

	
 $

	
0.02520

	
 

	
 $

	
0.02130

	
 

	
 $

	
0.01027

	
 

	
 $

	
0.04183

	
 

	
 $

	
0.00978

	
 

	
 $

	
0.00978

	
 

	
 $

	
0.00978

	
 

	
 $

	
0.00988

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kWk

	
 

	
 

	
3,142,148

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
1,956,892

	
 

	
 

	
876,000

	
 

	
 

	
974,800

	
 

	
 

	
106,092

	
 

	
Demand Rate

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 $

	
4.55

	
 

	
 

	
—

	
 

	
 $

	
6.12

	
 

	
 $

	
5.28

	
 

	
 $

	
7.14

	
 

	
 $

	
3.68

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Customer Bills

	
 

	
 

	
839.886

	
 

	
 

	
839.634

	
 

	
 

	
744.830

	
 

	
 

	
75.791

	
 

	
 

	
19.013

	
 

	
 

	
61.728

	
 

	
 

	
252

	
 

	
 

	
120

	
 

	
 

	
108

	
 

	
 

	
24

	
 

	
Customer Charge

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 $

	
75.00

	
 

	
 $

	
75.00

	
 

	
 $

	
75.00

	
 

	
 $

	
75.00

	
 

	
 

	
 

	
 

	
Page 1 of 5 

	
 

	
 

	
 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 55 of
 59

	
 

	
 

	
 

	
RECEIVED  

	
 

	
 

	
 

	
JAN 22 2007  

	
 

	
 

	
 

	
STATE OF ALASKA  

	
 

	
REGULATORY COMMISSION OF ALASKA  

Chugach Electric Association, Inc.

Unbundled 2000 TY Cost of Service Study
Results 

Consistent with Docket U-01-108, Order No. 3 (FMF-10)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Transmission

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Costs

	
 

	
$

	
675,819

	
 

	
$

	
354,286

	
 

	
$

	
164,909

	
 

	
$

	
29,491

	
 

	
$

	
158,335

	
 

	
$

	
1,550

	
 

	
$

	
321,534

	
 

	
$

	
133,960

	
 

	
$

	
168,794

	
 

	
$

	
18,780

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand Costs

	
 

	
$

	
21,154,347

	
 

	
$

	
11,345,295

	
 

	
$

	
6,132,976

	
 

	
$

	
812,182

	
 

	
$

	
4,332,676

	
 

	
$

	
67,461

	
 

	
$

	
9,809,052

	
 

	
$

	
3,733,636

	
 

	
$

	
5,598,693

	
 

	
$

	
476,723

	
 

	
Less Non-Operating Margins -
Int.

	
 

	
($

	
156,321

	
)

	
($

	
83,664

	
)

	
($

	
45,082

	
)

	
($

	
6,523

	
)

	
($

	
30,374

	
)

	
($

	
1,684

	
)

	
($

	
72,656

	
)

	
($

	
27,783

	
)

	
($

	
41,352

	
)

	
($

	
3,521

	
)

	
Less Wholesale Customer Charge
Adj

	
 

	
($

	
18,900

	
)

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
($

	
18,900

	
)

	
($

	
9,000

	
)

	
($

	
8,100

	
)

	
($

	
1,800

	
)

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
$

	
20,979,126

	
 

	
$

	
11,261,630

	
 

	
$

	
6,087,893

	
 

	
$

	
805,659

	
 

	
$

	
4,302,301

	
 

	
$

	
65,777

	
 

	
$

	
9,717,496

	
 

	
$

	
3,696,852

	
 

	
$

	
5,549,241

	
 

	
$

	
471,402

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Costs

	
 

	
$

	
18,908

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
18,900

	
 

	
$

	
9,000

	
 

	
$

	
8,100

	
 

	
$

	
1,800

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total Transmission Costs

	
 

	
$

	
21,673,845

	
 

	
$

	
11,615,916

	
 

	
$

	
6,252,803

	
 

	
$

	
835,150

	
 

	
$

	
4,460,637

	
 

	
$

	
67,327

	
 

	
$

	
10,057,930

	
 

	
$

	
3,839,812

	
 

	
$

	
5,726,135

	
 

	
$

	
491,982

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Costs Recoverable

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge Recovery

	
 

	
$

	
7,635,148

	
 

	
$

	
7,313,614

	
 

	
$

	
6,252,803

	
 

	
$

	
835,150

	
 

	
$

	
158,335

	
 

	
$

	
67,327

	
 

	
$

	
321,534

	
 

	
$

	
133,960

	
 

	
$

	
168,794

	
 

	
$

	
18,780

	
 

	
Demand Charge Recovery

	
 

	
$

	
14,019,797

	
 

	
$

	
4,302,301

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
4,302,301

	
 

	
$

	
0

	
 

	
$

	
9,717,496

	
 

	
$

	
3,696,852

	
 

	
$

	
5,549,241

	
 

	
$

	
471,402

	
 

	
Customer Charge
Recovery

	
 

	
$

	
18,900

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
18,900

	
 

	
$

	
9,000

	
 

	
$

	
8,100

	
 

	
$

	
1,800

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
21,673,845

	
 

	
$

	
11,615,916

	
 

	
$

	
6,252,803

	
 

	
$

	
835,150

	
 

	
$

	
4,460,637

	
 

	
$

	
67,327

	
 

	
$

	
10,057,930

	
 

	
$

	
3,839,812

	
 

	
$

	
5,726,135

	
 

	
$

	
491,982

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kWh Sales

	
 

	
 

	
2,133,277,945

	
 

	
 

	
1,088,195,582

	
 

	
 

	
509,797,768

	
 

	
 

	
91,168,000

	
 

	
 

	
487,229,814

	
 

	
 

	
4,791,170

	
 

	
 

	
1,045,082,363

	
 

	
 

	
436,111,794

	
 

	
 

	
549,517,153

	
 

	
 

	
59,453,416

	
 

	
Energy Rate

	
 

	
$

	
0,00032

	
 

	
$

	
0,00672

	
 

	
$

	
0,01227

	
 

	
$

	
0,00916

	
 

	
$

	
0,00032

	
 

	
$

	
0,01405

	
 

	
$

	
0,00031

	
 

	
$

	
0,00031

	
 

	
$

	
0,00031

	
 

	
$

	
0,00032

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kW

	
 

	
 

	
3,142,148

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
1,956,892

	
 

	
 

	
876,000

	
 

	
 

	
974,800

	
 

	
 

	
106,092

	
 

	
Demand Rate

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
$

	
3.63

	
 

	
 

	
—

	
 

	
$

	
4.97

	
 

	
$

	
4.22

	
 

	
$

	
5.69

	
 

	
$

	
4.44

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Customer Bills

	
 

	
 

	
839,886

	
 

	
 

	
839,634

	
 

	
 

	
744,830

	
 

	
 

	
75,791

	
 

	
 

	
19,013

	
 

	
 

	
61,728

	
 

	
 

	
252

	
 

	
 

	
120

	
 

	
 

	
108

	
 

	
 

	
24

	
 

	
Customer Charge

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
$

	
75.00

	
 

	
$

	
75.00

	
 

	
$

	
75.00

	
 

	
$

	
75.00

	
 

	
 

	
 

	
 

	
Page 2 of 5

	
 

	
 

	
 

	
Effective: 

	
 

	
February 27,
 2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 56 of
 59

	
 

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Unbundled 2000 TY Cost of Service Study
Results

Consistent with Docket U-01-108, Order No. 3 (FMF-10)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Distribution 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Costs

	
 

	
$

	
3,340,841

	
 

	
$

	
3,340,841

	
 

	
$

	
1,555,063

	
 

	
$

	
278,095

	
 

	
$

	
1,493,069

	
 

	
$

	
14,615

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Demand Costs

	
 

	
$

	
29,861,609

	
 

	
$

	
29,861,609

	
 

	
$

	
16,425,623

	
 

	
$

	
2,471,910

	
 

	
$

	
10,805,476

	
 

	
$

	
158,598

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Less Other Operating
Revenue

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Less Rental Property

	
 

	
($

	
254,148

	
)

	
($

	
254,148

	
)

	
($

	
139,796

	
)

	
($

	
21,038

	
)

	
($

	
91,964

	
)

	
($

	
1,350

	
)

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Less Other Electric
Revenues

	
 

	
($

	
389,143

	
)

	
($

	
389,143

	
)

	
($

	
214,051

	
)

	
($

	
32,213

	
)

	
($

	
140,812

	
)

	
($

	
2,067

	
)

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Less Non-Operating Margins -
Int.

	
 

	
($

	
324,819

	
)

	
($

	
324,819

	
)

	
($

	
178,021

	
)

	
($

	
29,272

	
)

	
($

	
111,688

	
)

	
($

	
5,839

	
)

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
($

	
968,110

	
)

	
($

	
968,110

	
)

	
($

	
531,868

	
)

	
($

	
82,523

	
)

	
($

	
344,464

	
)

	
($

	
9,255

	
)

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Net Distribution Demand
Cost

	
 

	
$

	
28,893,498

	
 

	
$

	
28,893,498

	
 

	
$

	
15,893,755

	
 

	
$

	
2,389,388

	
 

	
$

	
10,461,012

	
 

	
$

	
149,343

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Customer Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Plant

	
 

	
$

	
4,506,257

	
 

	
$

	
4,506,257

	
 

	
$

	
3,217,185

	
 

	
$

	
802,054

	
 

	
$

	
420,361

	
 

	
$

	
66,656

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Customer Accounting

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Revenue Costs

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Lighting

	
 

	
$

	
1,225,326

	
 

	
$

	
1,225,326

	
 

	
$

	
0

	
 

	
$

	
183,799

	
 

	
$

	
306,331

	
 

	
$

	
735,195

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
$

	
5,731,582

	
 

	
$

	
5,731,582

	
 

	
$

	
3,217,185

	
 

	
$

	
985,853

	
 

	
$

	
726,692

	
 

	
$

	
801,852

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
37,965,922

	
 

	
$

	
37,965,922

	
 

	
$

	
20,666,003

	
 

	
$

	
3,653,336

	
 

	
$

	
12,680,773

	
 

	
$

	
965,810

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Costs Recoverable

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge Recovery

	
 

	
$

	
21,773,327

	
 

	
$

	
21,773,327

	
 

	
$

	
17,448,818

	
 

	
$

	
2,667,482

	
 

	
$

	
1,493,069

	
 

	
$

	
163,958

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Demand Charge Recovery

	
 

	
$

	
10,461,012

	
 

	
$

	
10,461,012

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
10,461,012

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Customer Charge
Recovery

	
 

	
$

	
5,731,582

	
 

	
$

	
5,731,582

	
 

	
$

	
3,217,185

	
 

	
$

	
985,853

	
 

	
$

	
726,692

	
 

	
$

	
801,852

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
37,965,922

	
 

	
$

	
37,965,922

	
 

	
$

	
20,666,003

	
 

	
$

	
3,653,336

	
 

	
$

	
12,680,773

	
 

	
$

	
965,810

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Rate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kWh Sales

	
 

	
 

	
1,088,195,582

	
 

	
 

	
1,088,195,582

	
 

	
 

	
509,797,768

	
 

	
 

	
91,168,000

	
 

	
 

	
487,229,814

	
 

	
 

	
4,791,170

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
Energy Rate

	
 

	
$

	
0.02001

	
 

	
$

	
0.02001

	
 

	
$

	
0.03423

	
 

	
$

	
0.02926

	
 

	
$

	
0.00306

	
 

	
$

	
0.03422

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kW

	
 

	
 

	
1,185,256

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
Demand Rate

	
 

	
 

	
—

	
 

	
$

	
8.83

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
$

	
8.83

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Customer Bills

	
 

	
 

	
839,886

	
 

	
 

	
839,634

	
 

	
 

	
744,830

	
 

	
 

	
75,791

	
 

	
 

	
19,013

	
 

	
 

	
61,728

	
 

	
 

	
252

	
 

	
 

	
120

	
 

	
 

	
108

	
 

	
 

	
24

	
 

	
Customer Charge

	
 

	
 

	
—

	
 

	
$

	
6.83

	
 

	
$

	
4.32

	
 

	
$

	
13.01

	
 

	
$

	
38.22

	
 

	
$

	
12.99

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
Page 3 of 5

Effective: 

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 57 of 59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
  

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Unbundled 2000 TY Cost of Service Study
Results

Consistent with Docket U-01-108, Order No. 3 (FMF-10)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	

	
 

	

	
 

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Customer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Costs

	
 

	
$

	
1,608,284

	
 

	
$

	
1,608,284

	
 

	
$

	
748,609

	
 

	
$

	
133,875

	
 

	
$

	
718,765

	
 

	
$

	
7,036

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand
Costs

	
 

	
$

	
5,027,536

	
 

	
$

	
5,027,536

	
 

	
$

	
2,765,438

	
 

	
$

	
416,174

	
 

	
$

	
1,819,223

	
 

	
$

	
26,702

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Less
Non-Operating Margins - Int.

	
 

	
($

	
16,578

	
)

	
($

	
16,578

	
)

	
($

	
11,298

	
)

	
($

	
3,077

	
)

	
($

	
1,408

	
)

	
($

	
795

	
)

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Adjusted
Demand Costs

	
 

	
$

	
5,010,958

	
 

	
$

	
5,010,958

	
 

	
$

	
2,754,140

	
 

	
$

	
413,096

	
 

	
$

	
1,817,815

	
 

	
$

	
25,907

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer
Costs

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Customer
Plant

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Customer
Accounting

	
 

	
$

	
4,335,010

	
 

	
$

	
4,335,010

	
 

	
$

	
3,485,811

	
 

	
$

	
443,385

	
 

	
$

	
333,592

	
 

	
$

	
72,222

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Revenue

	
 

	
$

	
310,474

	
 

	
$

	
310,474

	
 

	
$

	
161,603

	
 

	
$

	
29,570

	
 

	
$

	
115,129

	
 

	
$

	
4,173

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal
Customer Costs

	
 

	
$

	
4,645,484

	
 

	
$

	
4,645,484

	
 

	
$

	
3,647,414

	
 

	
$

	
472,955

	
 

	
$

	
448,721

	
 

	
$

	
76,395

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Less Other
Operating Revenue:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Late Payment
Fee

	
 

	
$

	
248,508

	
 

	
$

	
248,508

	
 

	
$

	
199,827

	
 

	
$

	
25,417

	
 

	
$

	
19,123

	
 

	
$

	
4,410

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Misc Service
Revenue

	
 

	
$

	
472,715

	
 

	
$

	
472,715

	
 

	
$

	
380,113

	
 

	
$

	
48,349

	
 

	
$

	
36,377

	
 

	
$

	
7,876

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Excess Service
Drop

	
 

	
$

	
12,807

	
 

	
$

	
12,807

	
 

	
$

	
10,298

	
 

	
$

	
1,310

	
 

	
$

	
986

	
 

	
$

	
213

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Subtotal

	
 

	
$

	
734,029

	
 

	
$

	
734,029

	
 

	
$

	
590,238

	
 

	
$

	
75,077

	
 

	
$

	
56,486

	
 

	
$

	
12,229

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Subtotal -
Customer Costs

	
 

	
$

	
3,911,455

	
 

	
$

	
3,911,455

	
 

	
$

	
3,057,176

	
 

	
$

	
397,878

	
 

	
$

	
392,235

	
 

	
$

	
64,166

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total Customer
Costs

	
 

	
$

	
10,530,698

	
 

	
$

	
10,530,698

	
 

	
$

	
6,559,925

	
 

	
$

	
944,850

	
 

	
$

	
2,928,815

	
 

	
$

	
97,108

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Total Costs
Recoverable

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge
Recovery

	
 

	
$

	
4,801,427

	
 

	
$

	
4,801,427

	
 

	
$

	
3,502,749

	
 

	
$

	
546,971

	
 

	
$

	
718,765

	
 

	
$

	
32,942

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Demand Charge
Recovery

	
 

	
$

	
1,817,815

	
 

	
$

	
1,817,815

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
1,817,815

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Customer

	
 

	
$

	
3,911,455

	
 

	
$

	
3,911,455

	
 

	
$

	
3,057,176

	
 

	
$

	
397,878

	
 

	
$

	
392,235

	
 

	
$

	
64,166

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
10,530,698

	
 

	
$

	
10,530,698

	
 

	
$

	
6,559,925

	
 

	
$

	
944,850

	
 

	
$

	
2,928,815

	
 

	
$

	
97,108

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy
Rate

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kWh
Sales

	
 

	
 

	
1,088,195,582

	
 

	
 

	
1,088,195,582

	
 

	
 

	
509,797,768

	
 

	
 

	
91,168,000

	
 

	
 

	
487,229,814

	
 

	
 

	
4,791,170

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
Energy
Rate

	
 

	
$

	
0.00441

	
 

	
$

	
0.00441

	
 

	
$

	
0.00687

	
 

	
$

	
0.00600

	
 

	
$

	
0.00148

	
 

	
$

	
0.00688

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Demand
Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY kW

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
1,185,256

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
Demand
Rate

	
 

	
$

	
1.53

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
$

	
1.53

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
Page 4 of 5

Effective:

	
 

	
February 27,
  2007

	
Pursuant to:

	
 

	
U-06-056(6)

	
Page 58 of
  59

	
 

	
 

	
 

	
RECEIVED 

	
 

	
 

	
 

	
JAN 22 2007

	
 

	
 

	
 

	
STATE OF ALASKA 

	
 

	
REGULATORY COMMISSION OF ALASKA 

Chugach Electric Association, Inc.

Unbundled 2000 TY Cost of Service Study
Results

Consistent with Docket U-01-108, Order No. 3 (FMF-10)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Chugach Retail

	
 

	
Chugach Wholesale

	
 

	
 

	
 

	
 

	
 

	

	

	

	
 

	
Description

	
 

	
System Total

	
 

	
Total Retail

	
 

	
Residential

	
 

	
Small General

	
 

	
Large General

	
 

	
Lighting

	
 

	
Wholesale

	
 

	
HEA

	
 

	
MEA

	
 

	
SES

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
 

	
Customer Charge

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TY Customer
Bills

	
 

	
 

	
839,886

	
 

	
 

	
839,634

	
 

	
 

	
744,830

	
 

	
 

	
75,791

	
 

	
 

	
19,013

	
 

	
 

	
61,728

	
 

	
 

	
252

	
 

	
 

	
120

	
 

	
 

	
108

	
 

	
 

	
24

	
 

	
Customer
Charge

	
 

	
 

	
—

	
 

	
$

	
12.54

	
 

	
$

	
4.10

	
 

	
$

	
5.25

	
 

	
$

	
20.63

	
 

	
$

	
1.04

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
—

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
System Total
Costs Recoverable, by (ILLEGIBLE) class

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Energy Charge
Recovery

	
 

	
$

	
64,426,831

	
 

	
$

	
53,882,204

	
 

	
$

	
40,050,132

	
 

	
$

	
5,991,911

	
 

	
$

	
7,375,300

	
 

	
$

	
464,861

	
 

	
$

	
10,544,627

	
 

	
$

	
4,397,519

	
 

	
$

	
5,541,038

	
 

	
$

	
606,070

	
 

	
Demand Charge
Recovery

	
 

	
$

	
43,672,030

	
 

	
$

	
21,975,338

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
21,975,338

	
 

	
$

	
0

	
 

	
$

	
21,696,692

	
 

	
$

	
8,325,843

	
 

	
$

	
12,508,753

	
 

	
$

	
862,096

	
 

	
Customer

	
 

	
$

	
9,680,837

	
 

	
$

	
9,643,037

	
 

	
$

	
6,274,361

	
 

	
$

	
1,383,732

	
 

	
$

	
1,118,927

	
 

	
$

	
866,018

	
 

	
$

	
37,800

	
 

	
$

	
18,000

	
 

	
$

	
16,200

	
 

	
$

	
3,600

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
117,779,698

	
 

	
$

	
85,500,579

	
 

	
$

	
46,324,492

	
 

	
$

	
7,375,643

	
 

	
$

	
30,469,565

	
 

	
$

	
1,330,878

	
 

	
$

	
32,279,119

	
 

	
$

	
12,741,362

	
 

	
$

	
18,065,991

	
 

	
$

	
1,471,766

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
System
 Validation

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Revenue
 Requirement

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Production

	
 

	
$

	
47,609,233

	
 

	
$

	
25,388,044

	
 

	
$

	
12,845,762

	
 

	
$

	
1,942,308

	
 

	
$

	
10,399,340

	
 

	
$

	
200,634

	
 

	
$

	
22,221,190

	
 

	
$

	
8,901,550

	
 

	
$

	
12,339,856

	
 

	
$

	
979,784

	
 

	
Transmission

	
 

	
$

	
21,673,845

	
 

	
$

	
11,615,916

	
 

	
$

	
6,252,803

	
 

	
$

	
835,150

	
 

	
$

	
4,460,637

	
 

	
$

	
67,327

	
 

	
$

	
10,057,930

	
 

	
$

	
3,839,812

	
 

	
$

	
5,726,135

	
 

	
$

	
491,982

	
 

	
Distribution

	
 

	
$

	
37,965,922

	
 

	
$

	
37,965,922

	
 

	
$

	
20,666,003

	
 

	
$

	
3,653,336

	
 

	
$

	
12,680,773

	
 

	
$

	
965,810

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
Customer

	
 

	
$

	
10,530,698

	
 

	
$

	
10,530,698

	
 

	
$

	
6,559,925

	
 

	
$

	
944,850

	
 

	
$

	
2,928,815

	
 

	
$

	
97,108

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	
$

	
0

	
 

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	

	
Total

	
 

	
$

	
117,779,698

	
 

	
$

	
85,500,579

	
 

	
$

	
46,324,492

	
 

	
$

	
7,375,643

	
 

	
$

	
30,469,565

	
 

	
$

	
1,330,878

	
 

	
$

	
32,279,119

	
 

	
$

	
12,741,362

	
 

	
$

	
18,065,991

	
 

	
$

	
1,471,766

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
2000 TY Revenue
Req (FMF-10)

	
 

	
$

	
117,779,697

	
 

	
$

	
85,500,578

	
 

	
$

	
46,324,492

	
 

	
$

	
7,375,643

	
 

	
$

	
30,469,565

	
 

	
$

	
1,330,878

	
 

	
$

	
32,279,119

	
 

	
$

	
12,741,362

	
 

	
$

	
18,065,991

	
 

	
$

	
1,471,766

	
 

	
Difference

	
 

	
 ($

	
1

	
)

	
 ($

	
1

	
)

	
 ($

	
0

	
)

	
 ($

	
0

	
)

	
 ($

	
0

	
)

	
($

	
0

	
)

	
 ($

	
0

	
)

	
 ($

	
0

	
)

	
 ($

	
0

	
)

	
 ($

	
0

	
)

	
 

	
 

	
 

	
 

	
Page 5 of 5 

	
 

	
 

	
Effective:

	
Pursuant to:

	
February 27,
 2007

	
U-06-056(6)

	
 

	
 

	
Page 59 of
 59Exhibit 10.39.3

SETTLEMENT OF DISPUTE OVER NIKISKI COGENERATION PLANT

SYSTEM USE AND DISPATCH AGREEMENT AND

PREMIUM DEMAND CHARGES UNDER HEA PSA

          Chugach
Electric Association, Inc. ( Chugach) and Alaska Electric and Energy Cooperative, Inc. and
Homer Electric Association, Inc. (collectively referred to as “HEA”) have discussed
the matter of their disparate interpretations of the Nikiski Cogeneration Plant
System Use and Dispatch Agreement (Dispatch Agreement) and have agreed on a mutually satisfactory
settlement of their differences with respect to the Dispatch Agreement and Chugach’s claim for Premium Demand charges under
the HEA Power Sales Agreement with Chugach (HEA PSA) as follows:

          Chugach
agrees to dispatch HEA’s shares of Bradley Lake output for $30,000/per calendar
year subject to any changes in law or directive of governmental authority. This
annual
fee shall be payable on the last business day of June of each year for the
duration of
this settlement agreement (Settlement).

          This
Settlement will remain in effect until the earlier of (a) the termination or expiration of the HEA
PSA; (b) Chugach and HEA agree in writing to terminate this Settlement; or (c)
HEA notifies Chugach that HEA is unable to acquire satisfactory gas supplies to
provide for AEG&T Use (as defined in the Dispatch Agreement) and on that
basis elects to terminate this Settlement.

          Chugach
shall dispatch HEA’s share of Bradley Lake output, to the extent it is available, to
minimize HEA’s demand on Chugach’s monthly system peaks so as to minimize, to the
extent possible, any Premium Demand charge or claim by Chugach, and Chugach
shall calculate any such charge as though Chugach had complied perfectly with
such dispatching obligation.

          HEA
understands that while the parties believe that having Chugach dispatch HEA’s
share of Bradley Lake output is likely to greatly reduce the claim from Chugach

SETTLEMENT AGREEMENT
Page 1

for Premium Demand charges, it will not eliminate
the potential of such a claim. So long as this Settlement is
in effect, and for service rendered from December 1, 2007, forward, HEA will not contest and will promptly pay all Premium Demand
charges
assessed by Chugach, as calculated under the terms of this Settlement.

          Chugach
agrees that it will inquire as to natural gas availability from Marathon Oil Company
and from ENSTAR for AEG&T Use in order to develop a supply of gas for AEG&T Use
that can be used to further reduce Chugach’s claim for Premium Demand charges. Chugach will report the results to HEA
within 180 days of the date of this settlement
agreement.

          Chugach
shall not be responsible for obtaining and does not warrant that it will obtain a supply of fuel for AEG&T Use. HEA agrees to use
its best
efforts to obtain AEG&T Use fuel on commercially reasonable
terms. Chugach and HEA agree to cooperate in good faith on scheduling AEG&T
Use fuel if any such scheduling is required.

          Chugach
will calculate charges for the Bradley Lake dispatch set out in this Settlement to
include $2,500 for December of 2006 and $30,000 for all of 2007.

          Chugach 
 will    recalculate   Premium   Demand   charges   through
  November  30,  2007,  to  
reflect  a
re-dispatched HEA share of Bradley Lake output resulting in the
following past Premium Demand Charges under the HEA PSA:

          December
2006 - $24,181

          January
2007 - $58,486

          September
2007 - $12,693

          The
result is that the total payable by HEA to Chugach through November 30, 2007, under this
Settlement is $127,860. HEA agrees to pay this amount within 30 days after the date of this settlement agreement.

SETTLEMENT AGREEMENT
Page 2

          The
parties intend by this agreement to fully and completely settle all past claims
for Premium Demand charges through November 30, 2007, and to agree on how Premium Demand Charges will be computed
thereafter for so long as this Settlement is in effect. This Settlement represents a compromise of a disputed claim for
the convenience of the parties and by executing this agreement and
compromising with respect to the charges to be paid by HEA to and accepted by
Chugach, neither party is agreeing to the other
party’s interpretation of the Dispatch Agreement or to the impact of those
interpretations on Premium Demand charges under the HEA PSA. To the contrary,
each party continues to maintain the correctness of its interpretation
of the Dispatch Agreement, and reserves the right to assert its interpretation
of the Dispatch Agreement and questions relating to the assessment of the Premium
Demand charges at any time in an
appropriate forum after this Settlement has been terminated but only as to
charges that have been asserted for
events after this Settlement has been terminated. This Settlement and HEA’s
payment of any amount hereunder and Chugach’s acceptance of the amounts to be
paid hereunder cannot and will not be used as evidence to support either
party’s position in any proceeding in which HEA challenges Chugach’s assessment
of any demand charge for services delivered after the termination of
this Settlement.

          With
respect to the foregoing agreements the parties hereby acknowledge that they are aware that they or their attorneys may hereafter
discover claims,
facts, damages or injuries based upon, relating to or arising out of the subject matter
of this Settlement but that it is nevertheless their intention to hereby fully,
finally and forever settle and release all of the claims known or unknown,
suspected or unsuspected, which each has against the other based upon, relating
to, or arising out of the subject matter of this Settlement to the extent described herein. In furtherance of
such intention, the agreements reached shall
be and remain in effect as a full and complete general release to the extent
described

SETTLEMENT AGREEMENT
Page 3

herein
notwithstanding the discovery or existence of any additional or different
claims, facts, damages or injuries. The
parties are aware of the decision in the case of Witt v. Watkins, 579
P.2d 1065 (Alaska 1978). The parties expressly waive and relinquish any and all
rights and benefits which they may have under, or which may be conferred upon them by, the holding in Witt v. Watkins or any
other similar case law decision, statute or other legal authority law of
the State of Alaska, of any other state or territory of the United States, of
the United States, or of any foreign country, to the fullest extent that they
may lawfully waive such rights or benefits pertaining to the subject matter of
this Settlement.

          The
parties are aware of the decisions in the cases of Young v. State, 455 P.2d 889
(Alaska 1969) and Totem Marine Tug & Barge, Inc. v. Alyeska Pipeline
Service Co., 584 P.2d 15 (Alaska 1978), and any protections of the holdings
therein relevant to the present case are hereby waived
and relinquished. It is the true intent and desire of HEA and Chugach to fully
release all individuals, firms, corporations or other business entities related
to HEA and Chugach who may in any way have been connected with any claims released herein as fully as though they were
specifically listed and named herein. The parties acknowledge their
freedom of choice and understand that they do not need to consent to the terms
of this Agreement, and further acknowledge the availability of other reasonable
alternatives and adequate remedies, but have nonetheless freely, voluntarily,
and intentionally chosen not to pursue the same for the purpose of making a
full, final, and complete compromise of the disputes settled herein

          HEA
and Chugach each shall bear all attorney’s fees and costs arising from the
actions of their own counsel in connection with the drafting and negotiation of
this Settlement.

SETTLEMENT AGREEMENT
Page 4

          This
Settlement constitutes the entire agreement between HEA and Chugach relating to the settlement of the subject of this
Settlement. No statements, communications,
letters or other agreements, whether written or verbal, relating to this Settlement
shall have any force or effect unless embodied in this Settlement.

          HEA
and Chugach each agree to support jointly the reasonableness or adequacy of this Settlement in all proceedings in which its
reasonableness or adequacy is at issue. A determination by any court or
administrative agency with jurisdiction over this matter that this
Settlement is not reasonable or adequate shall render this Settlement null and
void.

          HEA
and Chugach each individually represents, warrants and agrees that it has the
full right and authority to enter into this Settlement, and to provide the
covenants set forth in this Settlement, and that the party or
representative executing this Settlement has the full right and authority to commit and bind such party according to the
provisions hereof.

          This
Settlement represents the compromise of disputed claims. This Settlement shall be binding upon and inure to the benefit of the
parties hereto
and their predecessors, successors, heirs, assigns, and representatives.

          Dated
this 15 day of January, 2008. 

	
 

	
 

	
 

	
HOMER ELECTRIC ASSOCIATION, INC.

	
 

	
 

	
AND ALASKA ELECTRIC AND

	
 

	
 

	
ENERGY, INC.

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Bradley P. Janorschke, General Manager

	
 

	
 

	
 

	
CHUGACH ELECTRIC ASSOCIATION,

 INC.

	
 

	
 

	
 

	
By:

	

	
 

	
 

	

	
 

	
Bradley Evans, CEO

SETTLEMENT AGREEMENT
Page 5

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