Background on the IBEW Union Memorandum of Understanding on Interties

Two new electric transmission lines are planned for the Railbelt. One is a northern intertie between Healy and Fairbanks; the other is a southern, intertie between Soldotna and Anchorage. In 1993, the Alaska Legislature authorized $90 million in grants to help build the two new lines, which will improve the efficiency and reliability of the regional power grid.

The State funds, which are expected to pay about half the cost of construction of the lines, are being held and disbursed by the Alaska Industrial Development and Export Authority. The projects are overseen by an Intertie Participants' Group, made up of representatives of each of the seven Railbelt utilities. These are Chugach Electric Association, Anchorage Municipal Light & Power, Matanuska Electric Association (MEA), Fairbanks Municipal Utilities System, Golden Valley Electric Association, Homer Electric Association, and the City of Seward.

The Memorandum of Understanding required a double-majority: a majority of the utilities involved, and a majority of their percentage participation. The MOU was signed by Homer Electric, Golden Valley, Fairbanks and Seward. It was signed but rescinded by Chugach and MEA. Until December 6, 1996, the ONLY utility never to have signed the agreement was Anchorage ML&P. Currently, the Memorandum has a 5-2 majority of utilities and about 55% majority in participation.