NOTICE OF FILING A PETITION FOR APPROVAL TO CREATE A REGULATORY ASSET FOR THE RECOVERY OF COSTS FROM THE ACQUISITION OF AN INTEREST IN THE BELUGA RIVER UNIT
The REGULATORY COMMISSION OF ALASKA (Commission) gives notice that on June 29, 2016, Chugach Electric Association, Inc. (Chugach) filed a Petition for Approval to Create a Regulatory Asset for the Recovery of Costs from the Acquisition of a Portion of ConocoPhillips Alaska, Inc.’s (Conoco) Interest in the Beluga River Unit (BRU). Chugach has recently acquired a 30% share of Conoco’s former 33.33% ownership interest in the BRU, resulting in Chugach obtaining a 10% percent ownership interest in the BRU. Docket No. U-16-062 has been opened to address this matter.
During the acquisition of the ownership interest in the BRU, Chugach states they required extensive due diligence and consulting expertise services to thoroughly review and evaluate the purchase of the ownership interest in the BRU. Chugach estimates that it will spend approximately $1.7 million on transaction costs and expenses related to the acquisition of the ownership interest in the BRU.
Chugach specifically requests the Commission authorize the creation of a regulatory asset of approximately $1.7 million for the transaction costs and expenses incurred between the July 2015 initial consideration of the BRU acquisition and the August 2016 final closing of the BRU purchase. Chugach further requests the Commission authorize Chugach to amortize the transaction costs and expenses over the life of the BRU and to allow recovery of the costs in rates over the remaining life of the BRU. Chugach shows in the petition that the end of BRU gas production is projected to occur in 2033.
This notice does not contain all revisions and the Commission may approve a rate or classification, which varies from that proposed. You may obtain more information about this filing by contacting Arthur Miller, Director of Regulatory Affairs and Pricing at Chugach, at 5601 Electron Drive, P. O. Box 196300, Anchorage, AK 99519-6300; phone: (907) 762-4758. The complete filing is also available for inspection at the Commission’s office at 701 West 8th Avenue, Suite 300, Anchorage, AK 99501; phone:
(907) 276-6222, or may be viewed at the Commission’s website at http://rca.alaska.gov by typing
U-16-062 in the Find a Matter search box.
To comment on this filing, please file your comments by 5:00 p.m., August 1, 2016, at the Commission’s address given above or via our website at:
https://rca.alaska.gov/RCAWeb/WhatsNew/PublicNoticesComments.aspx.
Please reference Docket No. U-16-062 and include a statement that you have filed a copy of the comments with Chugach at its address given above or by email at info@chugachelectric.com.
Individuals or groups of people with disabilities, who require special accommodations, auxiliary aids or service, or alternative communication formats, please contact Joyce McGowan at (907) 276-6222, toll-free at 1-800-390-2782, TTY (907) 276-4533 or send a request via electronic mail to rca.mail@alaska.gov by July 25, 2016.
DATED at Anchorage, Alaska, this 1st day of July, 2016.
REGULATORY COMMISSION OF ALASKA
Robert M. Pickett
Chairman