Goldman Sachs values ML&P

A Goldman Sachs analysis has valued Anchorage’s city-owned Municipal Light & Power at between $707 million and $1 billion, indicating that the proposed sale of ML&P to Chugach Electric Association for $1 billion would be in the upper ranges of the calculated value. The analysis had been kept con – dential by the Municipality of Anchorage until it was obtained and published by the Anchorage Daily News under the Freedom of Information Act. Chugach officials had not been the analysis but said it was consistent with their offer to buy ML&P. The sale must be approved by Anchorage voters in the April election.

Goldman Sachs said in the report that ML&P would have to raise its rates periodically to maintain a profit margin and pay debt service. Chugach said it will not raise rates due to the acquisition. Both Chugach and the municipality are being criticized in the Anchorage community over how the ML&P sale was negotiated, which was behind closed doors and without a transparent bid process, and how financial information was kept under wraps. There were others interested in ML&P but their offers are still confidential. Anchorage’s assembly officially decided Jan. 23 to put the question on the April ballot.