As city mulls potential future action on AEL&P, new report offers some insight

A new report looks into possible City and Borough of Juneau involvement in the proposed change of ownership of Alaska Electric Light & Power (AEL&P). Seattle-based PFM Financial Advisors explains what areas CBJ will need to explore in depth as it considers future action; the report does not offer a recommendation in regards to any acquisition decision or strategy.

“In our opinion, any decision by CBJ in that regard should only come after completion of extensive evaluation and research encompassing financial, legal, regulatory, and governance matters,” PFM Director Fred Eoff wrote in a letter with the report.

AEL&P, which has been owned by Washington-based Avista Corp. for the past three years, provides electric service to residential and commercial customers in Juneau. Avista intends to be acquired by Canadian company Hydro One. The potential acquisition is now before the Regulatory Commission of Alaska. CBJ is interested in this issue and the related risks that, with new ownership, current utility operations and rates could change. The matter was first brought up during a July Assembly meeting and the proposal to have a report done went through the Assembly Finance Committee.

The Assembly will discuss the report at a future meeting. Read the report here.

For more information, contact Finance Director Bob Bartholomew at 586-0300 or [email protected].