Portland, Maine (Platts)--24Jul2008

Six Alaska utilities should join together to form a state power authority
that would oversee regional generation and transmission operations, according
to a draft report released late Wednesday.

Under the proposal, the utilities -- Anchorage Municipal Light & Power,
Golden Valley Electric Association, Matanuska Electric Association, Chugach
Electric Association, Homer Electric Association and the Seward Electric
System -- would become distribution utilities.

The utilities, which service the state's main population centers known as
the Railbelt region, have a total peak load of about 1,100 MW.

The Railbelt region is at a "crossroads" with the need to invest $5.8
billion over the next 30 years on new generation, the report estimates.
Forming a state power authority would let utilities issue tax-exempt bonds and
also possibly receive state funding for the expansion, the report said.

The proposed state power authority would provide independent, coordinated
operation of the Railbelt electric transmission system as well as economic
dispatch of the Railbelt region's generation facilities, the report said. It
would be responsible for regional planning and joint development of new
facilities. The Railbelt utilities would continue to own their existing assets
under the plan.

Black & Veatch developed the study for the Alaska Legislature. The Alaska
Energy Authority is taking comments on the report until August 20.