Eklutna Hydroelectric Project

12 Months Ended

Dec. 31, 2012

Eklutna Hydroelectric Project [Abstract]

Eklutna Hydroelectric Project

(14)  Eklutna Hydroelectric Project

During October 1997, the ownership of the Eklutna Hydroelectric Project formally transferred from the Alaska Power Administration to the participating utilities.  This group, including their corresponding interest in the project, consists of Chugach (30 percent), MEA (16.7 percent) and Anchorage Municipal Light & Power (ML&P) (53.3 percent).

Plant in service in 2012 includes $4,725,470, net of accumulated depreciation of $1,671,335, which represents Chugach’s share of the Eklutna Hydroelectric Project.  In 2011 plant in service included $4,880,583, net of accumulated depreciation of $1,491,704.  Chugach and ML&P jointly operate the facility.  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.  Under net billing arrangements, Chugach then reimburses MEA for their share of the costs.  Chugach’s share of expenses was $682,757, $662,035, and $664,747 in 2012, 2011, and 2010, respectively and is included in power production and depreciation expense in the accompanying financial statements.  ML&P performs major maintenance at the plant.  Chugach provides personnel for the daily operation and maintenance of the power plant, who perform daily plant inspections, meter reading, monthly report preparation, and other activities as required.