Eklutna Hydroelectric Project

12 Months Ended

Dec. 31, 2017

Eklutna Hydroelectric Project [Abstract]

Eklutna Hydroelectric Project

(14)  Eklutna Hydroelectric Project

Along with two other utilities, Chugach purchased the Eklutna Hydroelectric Project from the Federal Government in 1997. Ownership was transferred from the United States Department of Energy’s Alaska Power Administration jointly to Chugach (30%), MEA (17%) and ML&P (53%).

Plant in service in 2017 included $3,967,933, net of accumulated depreciation of $2,591,717, which represents Chugach’s share of the Eklutna Hydroelectric Project. In 2016, plant in service included $4,229,167, net of accumulated depreciation of $2,442,175. The facility is operated by Chugach and maintained jointly by Chugach and ML&P. Each participant contributes their proportionate share for operation, maintenance and capital improvement costs to the plant, as well as to the transmission line between Anchorage and the plant. When MEA was an all-requirements wholesale customer, under net billing arrangements, Chugach reimbursed MEA for their share of the costs. Chugach’s share of expenses was $403,511,  $532,678, and $689,501 in 2017, 2016, and 2015, respectively, and is included in purchased power, power production and depreciation expense in the accompanying financial statements. ML&P performs major maintenance at the plant. Chugach performs the daily operation and maintenance of the power plant, providing personnel who perform daily plant inspections, meter reading, monthly report preparation, and other activities as required.