HomeMy WebLinkAboutMEA Letter Response to Memorandum Dated August 12, 1994Association, Inc.
= Matanuska Electric
P.O. Box 2929
Palmer, Alaska 99645 RECEIVED
Telephone: (907) 745-3231 Fax: (907) 745-9328 AUG 31 1994
DIVISION OF ENERGY/DCRA
August 29, 1994
Mr. Herv Hensley, Director
Division of Energy
Department of Community & Regional Affairs
333 West 4th Avenue, Suite 220
Anchorage, Alaska 99501-2341
Dear Mr. Hensley:
In response to your memorandum dated August 12, 1994, I am advising you that
Matanuska Electric Association, Inc. (MEA) has no present interest in being an additional
or alternate borrower with Copper Valley Electric Association, Inc. (CVEA) in the Sutton-
Glennallen intertie line.
However, the MEA Board of Directors is presently considering a policy whereby MEA
would want an ownership interest in any line that goes through MEA’s service area and was
not owned by the federal or state government. This policy could serve the overall interests
of MEA’s customers. MEA understands that by not being an applicant borrower at this
time, it could still work with CVEA some time in the future concerning having an interest
in the Sutton-Glennallen intertie line.
When the Sutton-Glennallen intertie line is constructed, MEA believes that it might be
logical and efficient for MEA to be involved in the design, construction, operations, or
maintenance of the line, at least to the extent that the line crosses the area MEA serves.
MEA again understands that it would not be foreclosed from any of these activities by not
being an applicant borrower.
Please call me if you have any questions.
Sincerely,
(Joteem. woodeoth
James N. Woodcock
Acting General Manager
aeh/mem
leters/083094A.doc
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CHUGACH ELECTRIC
ASSOCIATION, INC.
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ASSOCIATION, INC.
VIA FACSIMILE: 269-4645
August 31, 1994 (hard copy to follow)
RECEIVED Mr. Herv Hensley, Director
Department of Community and Regional Affairs SEP 07 1994
Division of Energy
333 W. 4th Avenue, Suite 220 DIVISION OF ENERGY /DCRA
Anchorage, Alaska 99504
Subject: Notice -- Loan Application for Sutton - Glennallen Intertie
Dear Mr. Hensley:
Chugach Electric Association has received your notice of August 12, 1994, regarding the loan application
of Copper Valley Electric Association. You have raised the possibility of additional or alternative
borrowers under the participation language of the legislation authorizing the $35 million loan for the
construction of the Sutton-Glennallen intertie. The notice requests that Chugach notify you if Chugach
wishes for the Division to consider any alternative borrower or set of borrowers for the loan. In the
absence of notification, the Division will negotiate a loan agreement solely with CVEA.
Chugach strongly supports the CVEA loan application and the efforts of CVEA in obtaining low-cost
power supply via the new intertie. We would like you to know that Chugach, while not currently
committed to participation "... in the design, construction, operation, and maintenance of the proposed
intertie between Sutton and Glennallen" (Chapter 19, Section 4(e), SLA 1993), has provided CVEA a
conceptual proposal for power supply arrangements and is preparing a response to a request for power
supply proposals from CVEA. The supply concept could include financial support for the payment of
debt service and operating costs of the line and if such financial arrangements are made, Chugach could
be considered a participant in the operation of the line. Availability of the funds for construction is the
most crucial step, however. Chugach fully supports immediate release of the funds to CVEA as the sole
borrower.
—v
Eugene N. Bjornstad
General Manager
-N. ann
4781.TAL:BM
ong. Wei
- Herv
5601 Minnesota Drive * RO. Box 196300 « Anchorage, Alaska 99519-6300
Phone 907-563-7494 ¢ FAX 907-562-0027