Company Quick10K Filing
Chugach Electric Association
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 0 $-0
10-Q 2019-11-08 Quarter: 2019-09-30
10-Q 2019-08-09 Quarter: 2019-06-30
10-Q 2019-05-10 Quarter: 2019-03-31
10-K 2019-03-27 Annual: 2018-12-31
10-Q 2018-11-09 Quarter: 2018-09-30
10-Q 2018-08-10 Quarter: 2018-06-30
10-Q 2018-05-15 Quarter: 2018-03-31
10-K 2018-03-21 Annual: 2017-12-31
10-Q 2017-11-09 Quarter: 2017-09-30
10-Q 2017-08-11 Quarter: 2017-06-30
10-Q 2017-05-12 Quarter: 2017-03-31
10-K 2017-03-27 Annual: 2016-12-31
10-Q 2016-11-14 Quarter: 2016-09-30
10-Q 2016-08-12 Quarter: 2016-06-30
10-Q 2016-05-13 Quarter: 2016-03-31
10-K 2016-03-24 Annual: 2015-12-31
10-Q 2015-11-16 Quarter: 2015-09-30
10-Q 2015-08-14 Quarter: 2015-06-30
10-Q 2015-05-14 Quarter: 2015-03-31
10-K 2015-03-20 Annual: 2014-12-31
10-Q 2014-11-14 Quarter: 2014-09-30
10-Q 2014-08-12 Quarter: 2014-06-30
10-Q 2014-05-14 Quarter: 2014-03-31
10-K 2014-03-20 Annual: 2013-12-31
10-Q 2013-11-12 Quarter: 2013-09-30
10-Q 2013-08-12 Quarter: 2013-06-30
10-Q 2013-05-13 Quarter: 2013-03-31
10-K 2013-03-22 Annual: 2012-12-31
10-Q 2012-11-09 Quarter: 2012-09-30
10-Q 2012-08-09 Quarter: 2012-06-30
10-Q 2012-05-11 Quarter: 2012-03-31
10-K 2012-03-20 Annual: 2011-12-31
10-Q 2011-11-10 Quarter: 2011-09-30
10-Q 2011-08-12 Quarter: 2011-06-30
10-Q 2011-05-16 Quarter: 2011-03-31
10-K 2011-03-30 Annual: 2010-12-31
10-Q 2010-11-12 Quarter: 2010-09-30
10-Q 2010-08-09 Quarter: 2010-06-30
10-Q 2010-05-14 Quarter: 2010-03-31
10-K 2010-03-05 Annual: 2009-12-31
8-K 2020-01-22 Enter Agreement, Exhibits
8-K 2019-11-27 Enter Agreement, Exhibits
8-K 2019-10-31 Enter Agreement
8-K 2019-10-01 Enter Agreement
8-K 2019-08-01 Enter Agreement, Off-BS Arrangement
8-K 2019-05-23 Officers, Amend Bylaw, Exhibits
8-K 2019-05-15 Enter Agreement, Off-BS Arrangement
8-K 2019-04-26
8-K 2019-03-20 Off-BS Arrangement
8-K 2018-12-28 Enter Agreement
8-K 2018-11-29
8-K 2018-10-25 Exhibits
8-K 2018-07-26
8-K 2018-06-21
8-K 2018-05-24 Amend Bylaw, Exhibits
8-K 2018-04-26
C004 2019-09-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 5. Other Information
EX-10.82.1 c004-20190930xex10_821.htm
EX-10.82.2 c004-20190930xex10_822.htm
EX-10.83.1 c004-20190930xex10_831.htm
EX-10.83.2 c004-20190930xex10_832.htm
EX-10.84.1 c004-20190930xex10_841.htm
EX-10.84.2 c004-20190930xex10_842.htm
EX-31.1 c004-20190930xex31_1.htm
EX-31.2 c004-20190930xex31_2.htm
EX-32.1 c004-20190930xex32_1.htm
EX-32.2 c004-20190930xex32_2.htm

Chugach Electric Association Earnings 2019-09-30

C004 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
LEXE 34,646 17,341 11,536 0 -148 1,505 8 0% 0.0 -0%
APTY 0 2 0 -0 -1 -1 -0 -29% 0.0 -349%
HBUV 3 4 0 0 -0 -0 3 0% -7.9 -11%
HEYU 0 1 0 0 -0 -0 -0 43% 0.4 -95%
ILAI 2 2 0 0 -1 -0 0 96% -0.1 -37%
BCTCV 1 9 0 0 -1 -1 -1 0% 0.9 -100%
RXR 47 0 4 0 3 3 -6 0% -2.1 6%
EDRG 4 3 4 1 -3 -3 -1 26% 0.3 -75%
RBTK 0 0 -1 -0 -0 0.2 68,693,800%
FEPI 2 1 0 0 -0 -0 -0 1.6 -2%

10-Q 1 c004-20190930x10q.htm 10-Q 20190930 10Q Q3



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





FORM 10-Q



QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934



Commission file number 33-42125

CHUGACH ELECTRIC ASSOCIATION, INC.

(Exact name of registrant as specifies in its charter)





 

 

 

 

 

 

 

 

 

State of Alaska

(State or other jurisdiction of

incorporation or organization)

92-0014224

(I.R.S. Employer

Identification No.)

5601 Electron Drive, Anchorage, AK

(Address of principal executive offices)

99518

(Zip Code)

(907) 563-7494

(Registrant’s telephone number, including area code)

None

(Former name, former address, and former fiscal year if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:  None

Title of each classTrading Symbol(s)Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  No

(Note:  The registrant is a voluntary filer and not subject to the filing requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934. Although not subject to these filing requirements, the registrant has filed all reports that would have been required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months had the registrant been subject to such requirements.)

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



 

 

 

 



 

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company



 

 

Emerging growth company



 

 

 

 



 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

NONE

 

 


 



CHUGACH ELECTRIC ASSOCIATION, INC.

TABLE OF CONTENTS





 

 

 



Caution Regarding Forward-Looking Statements

Part I. Financial Information

 



Item 1.

Financial Statements (unaudited)



 

Consolidated Balance Sheets - as of September 30, 2019, and December 31, 2018



 

Consolidated Statements of Operations – Three and nine months ended September  30, 2019, and September 30, 2018



 

Consolidated Statements of Changes in Equities and Margins – Three and nine months ended September 30, 2019, and September 30, 2018



 

Consolidated Statements of Cash Flows - Nine months ended September 30, 2019, and September 30, 2018



 

Notes to Financial Statements



Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

32 



Item 3.

Quantitative and Qualitative Disclosures About Market Risk

46 



Item 4.

Controls and Procedures

47 



 

 

 

Part II. Other Information

 



Item 1.

Legal Proceedings

48 



Item 1A.

Risk Factors

48 



Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

50 



Item 3.

Defaults Upon Senior Securities

50 



Item 4.

Mine Safety Disclosures

50 



Item 5.

Other Information

50 



Item 6.

Exhibits

51 



 

Signatures

53 







 

 


 





CAUTION REGARDING FORWARD-LOOKING STATEMENTS



Statements in this report that do not relate to historical facts, including statements relating to future plans, events or performance, are forward-looking statements that involve risks and uncertainties. Actual results, events or performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this report and the accuracy of which is subject to inherent uncertainty. It is suggested that these statements be read in conjunction with the audited financial statements for Chugach Electric Association Inc. (Chugach) for the year ended December 31, 2018, filed as part of Chugach’s annual report on Form 10-K. Chugach undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances that may occur after the date of this report or the effect of those events or circumstances on any of the forward-looking statements contained in this report, except as required by law.



PART I. FINANCIAL INFORMATION



ITEM 1. FINANCIAL STATEMENTS



The unaudited financial statements and notes to the unaudited financial statements of Chugach as of and for the quarter ended September 30, 2019, follow.





 

2


 

Table Of Contents

 

Chugach Electric Association, Inc.

Consolidated Balance Sheets

(Unaudited)































 

 

 

 

 

 



 

 

 

 

 

 

Assets

 

September 30, 2019

 

December 31, 2018



 

 

 

 

 

 

Utility plant:

 

 

 

 

 

 

Electric plant in service

 

$

1,239,536,327 

 

$

1,216,663,092 

Construction work in progress

 

 

15,324,043 

 

 

17,272,307 

Total utility plant

 

 

1,254,860,370 

 

 

1,233,935,399 

Less accumulated depreciation

 

 

(551,160,068)

 

 

(529,099,451)

Net utility plant

 

 

703,700,302 

 

 

704,835,948 



 

 

 

 

 

 

Other property and investments, at cost:

 

 

 

 

 

 

Nonutility property

 

 

76,889 

 

 

76,889 

Operating lease right-of-use assets

 

 

977,096 

 

 

Investments in associated organizations

 

 

8,148,223 

 

 

8,570,046 

Special funds

 

 

2,420,632 

 

 

1,890,221 

Restricted cash equivalents

 

 

108,000 

 

 

108,000 

Total other property and investments

 

 

11,730,840 

 

 

10,645,156 



 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

 

2,914,639 

 

 

6,106,995 

Special deposits

 

 

54,300 

 

 

54,300 

Restricted cash equivalents

 

 

1,230,789 

 

 

1,213,974 

Marketable securities

 

 

191,242 

 

 

6,316,583 

Fuel cost under-recovery

 

 

325,339 

 

 

Accounts receivable, net

 

 

24,002,928 

 

 

31,165,249 

Materials and supplies

 

 

17,529,355 

 

 

16,223,477 

Fuel stock

 

 

9,222,953 

 

 

11,952,086 

Prepayments

 

 

4,378,681 

 

 

2,227,117 

Other current assets

 

 

283,574 

 

 

241,279 

Total current assets

 

 

60,133,800 

 

 

75,501,060 



 

 

 

 

 

 

Other non-current assets:

 

 

 

 

 

 

Deferred charges, net

 

 

42,783,785 

 

 

37,668,424 

Total other non-current assets

 

 

42,783,785 

 

 

37,668,424 



 

 

 

 

 

 

Total assets

 

$

818,348,727 

 

$

828,650,588 



 

 

 

 

 

 



 

 

 

 

 

(Continued)



























 

3


 

Table Of Contents

 

Chugach Electric Association, Inc.

Consolidated Balance Sheets (continued)

(Unaudited)





 

 

 

 

 

 



 

 

 

 

 

 



Liabilities, Equities and Margins

 

September 30, 2019

 

December 31, 2018



 

 

 

 

 

 

Equities and margins:

 

 

 

 

 

 

Memberships

 

$

1,769,552 

 

$

1,748,172 

Patronage capital

 

 

172,505,010 

 

 

177,823,597 

Other

 

 

15,295,360 

 

 

14,952,925 

Total equities and margins

 

 

189,569,922 

 

 

194,524,694 



 

 

 

 

 

 

Long-term obligations, excluding current installments:

 

 

 

 

 

 

Bonds payable

 

 

449,999,997 

 

 

398,416,664 

Notes payable

 

 

31,464,000 

 

 

33,972,000 

Less unamortized debt issuance costs

 

 

(2,743,025)

 

 

(2,425,247)

Operating lease liabilities

 

 

787,076 

 

 

Total long-term obligations

 

 

479,508,048 

 

 

429,963,417 



 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current installments of long-term obligations

 

 

26,912,687 

 

 

26,608,667 

Commercial paper

 

 

17,000,000 

 

 

61,000,000 

Accounts payable

 

 

7,978,599 

 

 

9,538,749 

Consumer deposits

 

 

4,743,546 

 

 

4,845,611 

Fuel cost over-recovery

 

 

 

 

3,388,295 

Accrued interest

 

 

2,050,985 

 

 

5,671,840 

Salaries, wages and benefits

 

 

8,006,328 

 

 

7,863,112 

Fuel

 

 

6,520,890 

 

 

5,844,856 

Other current liabilities

 

 

9,711,873 

 

 

10,085,556 

Total current liabilities

 

 

82,924,908 

 

 

134,846,686 



 

 

 

 

 

 

Other non-current liabilities:

 

 

 

 

 

 

Deferred compensation

 

 

1,612,964 

 

 

1,359,878 

Other liabilities, non-current

 

 

540,134 

 

 

580,841 

Deferred liabilities

 

 

766,126 

 

 

764,834 

Patronage capital payable

 

 

1,931,295 

 

 

3,393,253 

Cost of removal obligation / asset retirement obligation

 

 

61,495,330 

 

 

63,216,985 

Total other non-current liabilities

 

 

66,345,849 

 

 

69,315,791 



 

 

 

 

 

 

Total liabilities, equities and margins

 

$

818,348,727 

 

$

828,650,588 



See accompanying notes to financial statements.



 

4


 

Table Of Contents

 

Chugach Electric Association, Inc.

Consolidated Statements of Operations

(Unaudited)







 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended September 30,

 

Nine months ended September 30,



 

2019

 

2018

 

2019

 

2018



 

 

 

 

 

 

 

 

 

 

 

 

Operating revenues

 

$

51,621,006 

 

$

46,114,590 

 

$

154,988,332 

 

$

148,160,451 



 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Fuel

 

 

14,965,286 

 

 

12,506,604 

 

 

42,492,081 

 

 

43,548,282 

Production

 

 

5,413,218 

 

 

4,577,360 

 

 

14,955,404 

 

 

13,184,565 

Purchased power

 

 

5,604,965 

 

 

4,373,454 

 

 

17,375,966 

 

 

12,668,357 

Transmission

 

 

1,714,765 

 

 

1,816,866 

 

 

5,737,548 

 

 

5,546,054 

Distribution

 

 

3,798,319 

 

 

3,968,811 

 

 

11,222,797 

 

 

11,590,360 

Consumer accounts

 

 

1,763,799 

 

 

1,632,570 

 

 

5,230,360 

 

 

5,150,221 

Administrative, general and other

 

 

5,421,364 

 

 

5,871,051 

 

 

18,367,731 

 

 

17,286,324 

Depreciation and amortization

 

 

7,902,172 

 

 

7,498,076 

 

 

23,452,921 

 

 

22,235,372 

Total operating expenses

 

 

46,583,888 

 

 

42,244,792 

 

 

138,834,808 

 

 

131,209,535 



 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt and other

 

 

5,721,820 

 

 

5,471,316 

 

 

16,868,856 

 

 

16,587,462 

Charged to construction

 

 

(68,457)

 

 

(82,335)

 

 

(253,514)

 

 

(207,196)

Interest expense, net

 

 

5,653,363 

 

 

5,388,981 

 

 

16,615,342 

 

 

16,380,266 

Net operating margins

 

 

(616,245)

 

 

(1,519,183)

 

 

(461,818)

 

 

570,650 



 

 

 

 

 

 

 

 

 

 

 

 

Nonoperating margins:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

130,336 

 

 

186,209 

 

 

442,151 

 

 

536,905 

Allowance for funds used during construction

 

 

30,891 

 

 

34,306 

 

 

114,398 

 

 

86,304 

Capital credits, patronage dividends and other

 

 

(13,018)

 

 

2,258 

 

 

105,739 

 

 

(189,843)

Total nonoperating margins

 

 

148,209 

 

 

222,773 

 

 

662,288 

 

 

433,366 



 

 

 

 

 

 

 

 

 

 

 

 

Assignable margins

 

$

(468,036)

 

$

(1,296,410)

 

$

200,470 

 

$

1,004,016 



See accompanying notes to financial statements.

 



 

5


 

Table Of Contents

 

Chugach Electric Association, Inc.

Consolidated Statements of Changes in Equities and Margins

(Unaudited)

 





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three months ended September 30,

 

Nine months ended September 30,



 

2019

 

2018

 

2019

 

2018

Memberships:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

1,761,182 

 

$

1,732,662 

 

$

1,748,172 

 

$

1,719,154 

Memberships and donations received

 

 

8,370 

 

 

8,645 

 

 

21,380 

 

 

22,153 

Balance at end of period

 

$

1,769,552 

 

$

1,741,307 

 

$

1,769,552 

 

$

1,741,307 

Other equities and margins:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

15,079,726 

 

 

14,798,475 

 

 

14,952,925 

 

 

14,653,253 

Unclaimed capital credits retired

 

 

(3,017)

 

 

(4,442)

 

 

(8,935)

 

 

(17,901)

Memberships and donations received

 

 

218,651 

 

 

25,365 

 

 

351,370 

 

 

184,046 

Balance at end of period

 

$

15,295,360 

 

$

14,819,398 

 

$

15,295,360 

 

$

14,819,398 

Patronage capital:

 

 

 

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

173,370,711 

 

 

174,834,061 

 

 

177,823,597 

 

 

172,928,887 

Assignable margins

 

 

(468,036)

 

 

(1,296,410)

 

 

200,470 

 

 

1,004,016 

Retirement/net transfer of capital credits

 

 

(397,665)

 

 

(52,709)

 

 

(5,519,057)

 

 

(447,961)

Balance at end of period

 

$

172,505,010 

 

$

173,484,942 

 

$

172,505,010 

 

$

173,484,942 

Total equities and margins

 

$

189,569,922 

 

$

190,045,647 

 

$

189,569,922 

 

$

190,045,647 



 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to financial statements

 

 

 

 

 

 

 

 

 

 

 

 







6


 

Table Of Contents

 

Chugach Electric Association, Inc.

Consolidated Statements of Cash Flow

(Unaudited)











 

 

 

 

 

 



Nine months ended September 30,

 



2019

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

Assignable margins

$

200,470 

 

$

1,004,016 

 

Adjustments to reconcile assignable margins to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

23,452,921 

 

 

22,235,372 

 

Amortization and depreciation cleared to operating expenses

 

5,432,733 

 

 

3,913,081 

 

Allowance for funds used during construction

 

(114,398)

 

 

(86,304)

 

Write off of inventory, deferred charges and projects

 

543,364 

 

 

160,022 

 

Other

 

(100,730)

 

 

226,830 

 

(Increase) decrease in assets:

 

 

 

 

 

 

Accounts receivable, net

 

5,557,144 

 

 

10,090,756 

 

Fuel cost under-recovery

 

(325,339)

 

 

4,921,794 

 

Materials and supplies

 

(1,324,947)

 

 

(512,888)

 

Fuel stock

 

2,729,133 

 

 

(4,352,362)

 

Prepayments

 

(2,151,564)

 

 

1,130,418 

 

Other assets

 

(42,295)

 

 

(35,303)

 

Deferred charges

 

(9,269,406)

 

 

(7,192,752)

 

Increase (decrease) in liabilities:

 

 

 

 

 

 

Accounts payable

 

(610,255)

 

 

425,240 

 

Consumer deposits

 

(102,065)

 

 

(317,921)

 

Fuel cost over-recovery

 

(3,388,295)

 

 

2,558,578 

 

Accrued interest

 

(3,620,855)

 

 

(4,963,081)

 

Salaries, wages and benefits

 

143,216 

 

 

1,014,555 

 

Fuel

 

676,034 

 

 

(4,352,803)

 

Other current liabilities

 

(2,241,684)

 

 

172,475 

 

Deferred liabilities

 

13,483 

 

 

(15,298)

 

Net cash provided by operating activities

 

15,456,665 

 

 

26,024,425 

 

Cash flows from investing activities:

 

 

 

 

 

 

Return of capital from investment in associated organizations

 

421,899 

 

 

414,012 

 

Investment in special funds

 

(275,328)

 

 

(302,152)

 

Investment in marketable securities and investments-other

 

(213,510)

 

 

(2,843,213)

 

Proceeds from the sale of marketable securities

 

6,437,508 

 

 

4,707,765 

 

Extension and replacement of plant

 

(26,286,728)

 

 

(18,479,692)

 

Net cash used in investing activities

 

(19,916,159)

 

 

(16,503,280)

 

Cash flows from financing activities:

 

 

 

 

 

 

Payments for debt issue costs

 

(505,065)

 

 

 

Net increase (decrease) in short-term obligations

 

(44,000,000)

 

 

12,000,000 

 

Proceeds from long-term obligations

 

75,000,000 

 

 

 

Repayments of long-term obligations

 

(25,810,667)

 

 

(25,810,667)

 

Memberships and donations received

 

363,815 

 

 

188,298 

 

Retirement of patronage capital and estate payments

 

(6,981,015)

 

 

(447,961)

 

Proceeds from consumer advances for construction

 

3,217,997 

 

 

3,234,427 

 

Repayments of customer advances for construction

 

(1,112)

 

 

(19,974)

 

Net cash (used in) provided by financing activities

 

1,283,953 

 

 

(10,855,877)

 

Net change in cash, cash equivalents, and restricted cash equivalents

 

(3,175,541)

 

 

(1,334,732)

 

Cash, cash equivalents, and restricted cash equivalents at beginning of period

$

7,428,969 

 

$

7,201,759 

 

Cash, cash equivalents, and restricted cash equivalents at end of period

$

4,253,428 

 

$

5,867,027 

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

Cost of removal obligation

$

(1,721,655)

 

$

1,876,966 

 

Extension and replacement of plant included in accounts payable

$

1,161,430 

 

$

4,468,774 

 

Patronage capital retired/net transferred and included in other current liabilities

$

 

$

2,000,000 

 

Supplemental disclosure of cash flow information - interest expense paid, net of amounts capitalized

$

19,827,103 

 

$

20,484,334 

 



See accompanying notes to financial statements.

 

7


 

Table of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

1.      PRESENTATION OF FINANCIAL INFORMATION



The accompanying unaudited interim financial statements include the accounts of Chugach Electric Association, Inc. (Chugach) and have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America generally accepted accounting principles (U.S. GAAP) for complete financial statements. They should be read in conjunction with Chugach’s audited financial statements for the year ended December 31, 2018, filed as part of Chugach’s annual report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for interim periods are not necessarily indicative of the results that may be expected for an entire year or any other period.



2.      DESCRIPTION OF BUSINESS



Chugach is one of the largest electric utilities in Alaska. Chugach is engaged in the generation, transmission and distribution of electricity in the Anchorage and upper Kenai Peninsula areas. Chugach is on an interconnected regional electrical system referred to as the Alaska Railbelt, a 400-mile-long area stretching from the coastline of the southern Kenai Peninsula to the interior of the state, including Alaska's largest cities, Anchorage and Fairbanks.



Chugach’s retail and wholesale members are the consumers of the electricity sold. Chugach supplies much of the power requirements of the City of Seward (Seward), as a wholesale customer. Occasionally, Chugach sells available generation, in excess of its own needs, to Matanuska Electric Association, Inc. (MEA), Homer Electric Association, Inc. (HEA), Golden Valley Electric Association, Inc. (GVEA) and Anchorage Municipal Light & Power (ML&P).



Chugach was organized as an Alaska electric cooperative in 1948 and operates on a not‑for‑profit basis and, accordingly, seeks only to generate revenues sufficient to pay operating and maintenance costs, the cost of purchased power, capital expenditures, depreciation, and principal and interest on all indebtedness and to provide for reserves. Chugach is subject to the regulatory authority of the Regulatory Commission of Alaska (RCA).



Chugach has three Collective Bargaining Agreements (CBA’s) with the International Brotherhood of Electrical Workers  (IBEW), representing approximately 70% of its workforce. Chugach also has an agreement with the Hotel Employees and Restaurant Employees (HERE). All three IBEW CBA’s are effective through June 30, 2021. The three CBA’s provide for wage increases in all years and include health and welfare premium cost sharing provisions. The HERE contract is effective through June 30, 2021, and provides for wage, pension contribution, and health and welfare contribution increases in all years.

 



8


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

3.      SIGNIFICANT ACCOUNTING POLICIES



a. Management Estimates



In preparing the financial statements in conformity with U.S. GAAP, the management of Chugach is required to make estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for the reporting period. Estimates include allowance for doubtful accounts, workers’ compensation liability, deferred charges and liabilities, unbilled revenue, estimated useful life of utility plant, cost of removal and asset retirement obligation (“ARO”), and remaining proved Beluga River Unit (“BRU”) reserves. Actual results could differ from those estimates.



b. Regulation



The accounting records of Chugach conform to the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission (“FERC”). Chugach meets the criteria, and accordingly, follows the accounting and reporting requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 980, “Topic 980 - Regulated Operations.” FASB ASC 980 provides for the recognition of regulatory assets and liabilities as allowed by regulators for costs or credits that are reflected in current rates or are considered probable of being included in future rates. Chugach’s regulated rates are established to recover all of the specific costs of providing electric service. In each rate filing, rates are set at levels to recover all of the specific allowable costs and those rates are then collected from retail and wholesale customers. The regulatory assets or liabilities are then reduced as the cost or credit is reflected in earnings and our rates.



c. Income Taxes



Chugach is exempt from federal income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code and for the nine month periods ended September 30, 2019, and 2018 was in compliance with that provision.



Chugach applies a more-likely-than-not recognition threshold for all tax uncertainties. FASB ASC 740, “Topic 740 – Income Taxes,” only allows the recognition of those tax benefits that have a greater than 50% likelihood of being sustained upon examination by the taxing authorities. Chugach’s management reviewed Chugach’s tax positions and determined there were no outstanding or retroactive tax positions that were not highly certain of being sustained upon examination by the taxing authorities.



9


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

d. Cash, Cash Equivalents, and Restricted Cash Equivalents



The following table provides a reconciliation of cash, cash equivalents, and restricted cash equivalents reported within the Consolidated Balance Sheet that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows.





 

 

 

 

 



 

 

 

 

 



September 30, 2019

 

December 31, 2018

Cash and cash equivalents

$

2,914,639 

 

$

6,106,995 

Restricted cash equivalents

 

1,230,789 

 

 

1,213,974 

Restricted cash equivalents included in other property and investments

 

108,000 

 

 

108,000 

Total cash, cash equivalents and restricted cash equivalents shown in the consolidated statements of cash flows

$

4,253,428 

 

$

7,428,969 



Restricted cash equivalents include funds on deposit for future workers’ compensation claims.



e. Marketable Securities



Chugach’s marketable securities consist of bond mutual funds, corporate bonds, and certificates of deposit with a maturity less than 12 months, classified as trading securities, reported at fair value with gains and losses in earnings. Interest and dividend income from marketable securities is included in nonoperating margins – interest income, and was $103.9 thousand and $300.2 thousand at September 30, 2019, and 2018, respectively. Net gains and losses on marketable securities are included in nonoperating margins – capital credits, patronage dividends and other, and are summarized as follows:





 

 

 

 

 



 

 

 

 

 



Nine months ended
September 30, 2019

 

Nine months ended
September 30, 2018

Net gains (losses) recognized during the period on trading securities

$

98,657 

 

$

(177,267)

Less: Net gains (losses) recognized during the period on trading securities sold during the period

 

98,495 

 

 

(179,916)

Unrealized gains (losses) recognized during the reporting period on trading securities still held at the reporting date

$

162 

 

$

2,649 



f. Accounts Receivable



Included in accounts receivable are amounts invoiced to ML&P for their proportionate share of current Southcentral Power Project (“SPP”) costs, which amounted to $1.3 million and $1.4 million at September 30, 2019, and December 31, 2018, respectively.



10


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

g. Fuel Stock



Fuel Stock is the weighted average cost of fuel injected into Cook Inlet Natural Gas Storage, LLC (“CINGSA”). Chugach’s fuel balance in storage amounted to $9.2 million and $12.0 million at September 30, 2019, and December 31, 2018, respectively.



h. Investments in Associated Organizations



Chugach’s investments in associated organizations are considered equity securities without readily determinable fair values, and as such are measured at cost minus impairment, if any. There were no impairments of these investments recognized during the nine months ended September 30, 2019, or 2018.    







4.      REVENUE FROM CONTRACTS WITH CUSTOMERS



a. Nature of goods and services



The following is a description of the contracts and customer classes from which Chugach generates revenue.



i. Energy Sales



Energy sales revenues are Chugach’s primary source of revenue, representing approximately 96.8% and 95.1% of total operating revenue during the nine months ended September 30, 2019, and 2018, respectively. Energy sales revenues are recognized upon delivery of electricity, based on billing rates authorized by the RCA, which are applied to customers’ usage of electricity. Chugach’s rates are established, in part, on test period sales levels that reflect actual operating results. Chugach's tariffs include provisions for the recovery of gas costs according to gas supply contracts and costs associated with the BRU operations, as well as purchased power costs.



Expenses associated with electric services include fuel purchased from others and produced from Chugach’s interest in the BRU, both of which are used to generate electricity, as well as power purchased from others. Chugach is authorized by the RCA to recover fuel and purchased power costs through the fuel and purchased power adjustment process, which is adjusted quarterly to reflect increases and decreases of such costs. The amount of fuel and purchased power revenue recognized is equal to actual fuel and purchased power costs. We recognize differences between projected recoverable fuel and purchased power costs and amounts actually recovered through rates. The fuel cost under/over recovery on our balance sheet represents the net accumulation of any under- or over-collection of fuel and purchased power costs. Fuel cost under-recovery will appear as an asset on our balance sheet and will be collected from our members in subsequent periods. Conversely, fuel cost over-recovery will appear as a liability on our balance sheet and will be refunded to our members in subsequent periods.

11


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 





 

Customer Class

Nature, timing of satisfaction of performance obligations, and significant payment terms

Retail

Retail energy customers can have up to four components of monthly billing included in revenue – energy, fuel and purchased power, demand and customer charge. The energy rate and fuel and purchased power surcharge are applied by kilowatt hour (kWh) usage. The demand charge is applied by kilowatt (kW). The customer charge is a monthly amount applied by meter.

Wholesale

Classified as firm energy sales. Four components of monthly billing are included in revenue – energy, fuel and purchased power, demand and customer charge. The energy rate and fuel and purchased power surcharge are applied by kWh usage. The demand charge is applied by kW. The customer charge is a monthly amount applied by meter.

Economy

Classified as non-firm energy sales. Three components of monthly billing are included in revenue – fuel, operations and maintenance, and margin. The actual fuel costs are billed per thousand cubic feet (Mcf) used. The operations and maintenance and margin rates are applied by megawatt hour (MWh) usage.



Payment on energy sales invoices to all customer classes above are due within 15 to 30 days.



Chugach calculates unbilled revenue, for residential and commercial customers, at the end of each month to ensure the recognition of a full month of revenue. Chugach accrued $8,271,054 and $7,999,322 of unbilled retail revenue at September 30, 2019, and 2018, respectively, which is included in accounts receivable on the balance sheet. Revenue derived from wholesale and economy customers is recorded from metered locations on a calendar month basis, so no estimation is required.



The collectability of our energy sales is very high with typically 0.10% written off as bad debt expense, adjusted annually.



There were no costs associated with obtaining any of these contracts, therefore no asset was recognized or recorded associated with obtaining any contract.



ii. Wheeling



Wheeling represented 2.0% and 3.7% of our revenue during the nine months ended September 30, 2019, and 2018, respectively. Wheeling was recorded through the wheeling of energy across Chugach’s transmission lines at rates set by utility tariff and approved by the RCA. The rates are applied to MWh of energy wheeled. The collectability of wheeling is very high, with no adjustment required.



12


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

iii. Other Miscellaneous Services



Other miscellaneous services consist of various agreements including dispatch service and gas transfer agreements, pole rentals and microwave bandwidth. Revenue from these agreements is billed monthly and represented 1.2% of our total operating revenue during the nine months ended September 30, 2019, and 2018. The revenue recognized from these agreements is recorded as the service is provided over a period of time. The collectability of these agreements is very high, with no adjustment required.



b. Disaggregation of Revenue



The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated Statement of Operations for the third quarter of 2019 and 2018 (in millions).





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Base Rate Sales Revenue

Fuel and Purchased Power Revenue

Total Revenue



 

2019

 

2018

 

% Variance

 

2019

 

2018

 

% Variance

 

2019

 

2018

 

% Variance

Retail

 

$

29.9 

 

$

28.1 

 

6.4 

%

 

$

18.6 

 

$

14.8 

 

25.7 

%

 

$

48.5 

 

$

42.9 

 

13.1 

%

Wholesale

 

$

0.6 

 

$

0.6 

 

0.0 

%

 

$

1.0 

 

$

0.7 

 

42.9 

%

 

$

1.6 

 

$

1.3 

 

23.1 

%

Economy

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

0.0 

 

$

0.0 

 

0.0 

%

Total Energy Sales

 

$

30.5 

 

$

28.7 

 

6.3 

%

 

$

19.6 

 

$

15.5 

 

26.5 

%

 

$

50.1 

 

$

44.2 

 

13.3 

%

Wheeling

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

0.8 

 

$

1.2 

 

(33.3 

%)

 

$

0.8 

 

$

1.2 

 

(33.3 

%)

Other

 

$

0.7 

 

$

0.6 

 

16.7 

%

 

$

0.0 

 

$

0.1 

 

(100.0 

%)

 

$

0.7 

 

$

0.7 

 

0.0 

%

Total Miscellaneous

 

$

0.7 

 

$

0.6 

 

16.7 

%

 

$

0.8 

 

$

1.3 

 

(38.5 

%)

 

$

1.5 

 

$

1.9 

 

(21.1 

%)

Total Revenue

 

$

31.2 

 

$

29.3 

 

6.5 

%

 

$

20.4 

 

$

16.8 

 

21.4 

%

 

$

51.6 

 

$

46.1 

 

11.9 

%



The table below details the revenue recognized by customer class and disaggregates base revenue from fuel and purchased power revenue recognized in the Consolidated Statement of Operations for the nine months ended September 30, 2019, and 2018 (in millions).





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Base Rate Sales Revenue

Fuel and Purchased Power Revenue

Total Revenue



 

2019

 

2018

 

% Variance

 

2019

 

2018

 

% Variance

 

2019

 

2018

 

% Variance

Retail

 

$

91.9 

 

$

88.3 

 

4.1 

%

 

$

53.7 

 

$

48.7 

 

10.3 

%

 

$

145.6 

 

$

137.0 

 

6.3 

%

Wholesale

 

$

1.6 

 

$

1.6 

 

0.0 

%

 

$

2.7 

 

$

2.3 

 

17.4 

%

 

$

4.3 

 

$

3.9 

 

10.3 

%

Economy

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

0.0 

 

$

0.0 

 

0.0 

%

Total Energy Sales

 

$

93.5 

 

$

89.9 

 

4.0 

%

 

$

56.4 

 

$

51.0 

 

10.6 

%

 

$

149.9 

 

$

140.9 

 

6.4 

%

Wheeling

 

$

0.0 

 

$

0.0 

 

0.0 

%

 

$

3.1 

 

$

5.4 

 

(42.6 

%)

 

$

3.1 

 

$

5.4 

 

(42.6 

%)

Other

 

$

1.9 

 

$

1.8 

 

5.6 

%

 

$

0.1 

 

$

0.1 

 

0.0 

%

 

$

2.0 

 

$

1.9 

 

5.3 

%

Total Miscellaneous

 

$

1.9 

 

$

1.8 

 

5.6 

%

 

$

3.2 

 

$

5.5 

 

(41.8 

%)

 

$

5.1 

 

$

7.3 

 

(30.1 

%)

Total Revenue

 

$

95.4 

 

$

91.7 

 

4.0 

%

 

$

59.6 

 

$

56.5 

 

5.5 

%

 

$

155.0 

 

$

148.2 

 

4.6 

%



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



13


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

c. Contract Balances



The table below provides information about contract receivables and contract liabilities.





 

 

 

 

 



 

 

 

 

 



September 30, 2019

 

December 31, 2018

Contract receivables, included in accounts receivable

$

21,987,663 

 

$

27,179,031 

Contract asset

 

325,339 

 

 

Contract liabilities

 

1,841,037 

 

 

5,196,426 



Contract receivables represent amounts receivable from retail, wholesale, economy and wheeling.



The contract asset consists of the fuel under-recovery and represents the under-collection of fuel and purchased power costs through the fuel and purchased power adjustment process, which will be collected from customers in the following quarter.



Contract liabilities consist of credit balances and fuel cost over-recovery. Credit balances are reported as consumer deposits and represent the prepaid accounts of retail customers and are recognized in revenue as the customer uses electric service. Fuel cost over-recovery represents the over-collection of fuel and purchased power costs through the fuel and purchased power adjustment process, which will be refunded to customers through lower rates in the following quarter.



Significant changes in the contract asset balances are as follows:



 

 

 

 

 



 

 

 

 

 



September 30, 2019

 

December 31, 2018

Contract asset at beginning of period

$

 

$

4,921,794 

Cash received, excluding amounts recognized as revenue during the period

 

325,339 

 

 

Revenue recognized and transferred from contract asset at the beginning of the period

 

 

 

(4,921,794)

Contract asset at end of period

$

325,339 

 

$



Significant changes in contract liabilities balances are as follows:







 

 

 

 

 



 

 

 

 

 



September 30, 2019

 

December 31, 2018

Contract liabilities at beginning of period

$

5,196,426 

 

$

1,581,481 

Cash received, excluding amounts recognized as revenue during the period

 

1,715,354 

 

 

5,196,426 

Revenue recognized that was included in the contract liability balance at the beginning of the period

 

(5,070,743)

 

 

(1,581,481)

Contract liabilities at end of period

$

1,841,037 

 

$

5,196,426 

14


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

d. Transaction Price Allocated to Remaining Performance Obligations



The table below includes estimated revenue to be recognized during the remainder of 2019 related to performance obligations that are unsatisfied (or partially unsatisfied) at September 30, 2019.





 

 



 

 



2019

Credit balances

$

1,841,037 



Credit balances are primarily associated with Chugach’s LevelPay program. The program calculates the monthly amount to be collected from customers annually. It is anticipated the balance will be recognized in revenue within the following year as customers consume electricity.



5.      REGULATORY MATTERS



Simplified Rate Filing



Chugach is a participant in the Simplified Rate Filing (SRF) process for adjustments to base demand and energy rates for Chugach retail customers and wholesale customer, Seward. SRF is an expedited base rate adjustment process available to electric cooperatives in the State of Alaska, with filings made either on a quarterly or semi-annual basis. Chugach is a participant on a quarterly filing schedule basis. Chugach is required to submit filings to the RCA for approval before any rate changes can be implemented. While there is no limitation on decreases, base rate increases under SRF are limited to 8% in a 12-month period and 20% in a 36-month period. 



Chugach submitted quarterly SRF filings which resulted in a system demand and energy rate increase of 2.7% effective November 1, 2018; an increase of 0.7% effective February 1, 2019; an increase of 0.8% effective May 1, 2019; an increase of 2.5% effective August 1, 2019;  and an increase of 3.8% effective November 1, 2019.



Operation and Regulation of the Alaska Railbelt Electric and Transmission System



In June 2016, the RCA opened a docket to “evaluate the reliability and security standards and practices of Alaska Electric Utilities.” In 2017, Chugach and several other Alaska Railbelt utilities entered into a contract with GDS Associates, Inc. (GDS). GDS’s role was to facilitate discussion among all six Alaska Railbelt utilities and various stakeholders with an end goal of submitting to the RCA a Railbelt Reliability Council (RRC), including a governance structure, that will be responsible for adoption and enforcement of uniform reliability and interconnection standards and integrated transmission resource planning and evaluation on transition to a single regional load balancing area. GDS presented to the RCA during technical conferences in January and March of 2018. Chugach and the other utilities provided GDS’s final recommendation of the RRC to the RCA in May 2018. During the fourth quarter of 2018, the utilities reviewed and adapted the memorandum of understanding with GDS (“GDS MOU”) with the RCA. The utilities are currently in discussions with non-utility stakeholders to include their input in the RRC formation process. In parallel, the utilities and an affiliate of American Transmission

15


 

Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

Company  (ATC) were in discussions regarding the formation of a transmission-only utility. ATC, GVEA, HEA, ML&P, and Seward Electric System collectively dba the Alaska Railbelt Transmission Co (“ART”) filed with the RCA for a Railbelt-wide Transco Certificate of Public Convenience (“CPCN”) on February 25, 2019. At that time Chugach’s primary focus was on filing with the RCA for the transfer of the ML&P CPCN to Chugach, and we were unable to complete our due diligence on the Transco filing prior to the filing date. Neither Chugach nor MEA were a  party to this filing. On March 15, 2019 the RCA initiated an order requesting comments on proposed legislative language which would authorize the RCA to designate or develop an Electric Reliability Organization (“ERO”). Chugach submitted comments on this proposed legislative language seeking to delay adoption until the RRC Governance Board can be formed but continued to work with the RCA and stakeholders to craft acceptable legislation. Subsequently, Chugach completed its review of the ART filing, determined the model not to be in the best interest of our membership; and therefore, declined to participate in the ART Transco. Following Chugach’s decision not to participate, ART withdrew its filing.



Chugach and the members of Alaska Railbelt Cooperative Transmission and Electric Company (“ARCTEC”) continue to work with the other utilities and stakeholders to arrive at legislation and an RRC organization acceptable to all Railbelt utilities and stakeholders.



In June 2016, in response to Docket I-16-002, Railbelt Utility Information Technology and Operations Technology, leadership began meeting to discuss Railbelt Cybersecurity. The Railbelt Utilities Managers group designated the Cybersecurity Working Group to review industry standards and provide a statement of work to develop Railbelt Cybersecurity Standards. On June 21, 2018, Chugach posted a Request for Proposal to hire a consultant to write the standards. A final draft was presented to the Railbelt Utility Managers on February 15, 2019. On July 10, 2019 a status update was provided to the RCA from the Railbelt Utility Managers announcing the completion of Alaska Critical Infrastructure Protection (“AKCIP”) Cybersecurity Standards, and collective agreement to adopt them effective January 1, 2020 and implement them according to the implementation schedules contained in the specific standards.



ML&P Acquisition



In December 2017, the Mayor of Anchorage, Alaska, announced plans to place a proposition on the April 3, 2018 municipal ballot allowing the voters to authorize the sale of ML&P to Chugach. The proposition was approved by Anchorage voters 65.08% to 34.92% per the certified election results. Chugach and the Municipality of Anchorage (“MOA”) negotiated final sales agreements and associated documents. The sale of ML&P was approved by the Anchorage Assembly on December 4, 2018 and the Chugach Board of Directors gave its final approval on December 19, 2018. The agreements and associated documents were executed on December 28, 2018. Pursuant to these agreements and associated documents, on April 1, 2019, Chugach submitted the Joint Request for Necessary Approvals for Acquisition of Anchorage Municipal Light and Power, and the Petition for Approvals Needed to Acquire Anchorage Municipal Light and Power and Application to Amend Certificate of Public Convenience and Necessity No. 8 to the RCA. The RCA accepted the filing as complete on April 18, 2019, and the procedural conference was held on April 22, 2019. On May 8, 2019, the RCA issued an order indicating that

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Table Of Contents

 

Chugach Electric Association, Inc.

Notes to Consolidated Financial Statements

September 30, 2019 and 2018

 

a final order in the case was expected by November 19, 2019. In addition, the RCA granted the petitions to intervene filed by MEA; Providence Health and Services (“Providence”); GVEA; the Federal Executive Agencies (“FEA”); and HEA / Alaska Electric and Energy Cooperative, Inc. Hearings on the acquisition were held in August and September 2019. On October 1, 2019, all parties agreed to an extension for the RCA’s final order in the case to February 17, 2020.