EKLUTNA HYDROELECTRIC PROJECT

                           Agreement for Extension of

              "1996 EKLUTNA HYDROELECTRIC PROJECT TRANSITION PLAN"

                                  by and among


          THE MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT & POWER;
                     CHUGACH ELECTRIC ASSOCIATION, INC.; and
                      MATANUSKA ELECTRIC ASSOCIATION, INC.














                          EKLUTNA HYDROELECTRIC PROJECT

                           Agreement for Extension of

              "1996 EKLUTNA HYDROELECTRIC PROJECT TRANSITION PLAN"


                                  by and among


          THE MUNICIPALITY OF ANCHORAGE d/b/a MUNICIPAL LIGHT & POWER;
                     CHUGACH ELECTRIC ASSOCIATION, INC.; and
                      MATANUSKA ELECTRIC ASSOCIATION, INC.


The parties to this Agreement are the Eklutna  Purchasers as defined in the 1996
Eklutna  Hydroelectric  Project  Transition Plan (Transition  Plan). The Eklutna
Purchasers  recognize  that common  interests  exist  regarding  the  ownership,
operation, and maintenance of the Eklutna Project. The Eklutna Purchasers hereby
extend the Transition Plan as modified by this Agreement.

The  Eklutna  Purchasers  further  recognize  that  obligations  of the  Eklutna
Purchasers  under the terms of the Alaska  Power  Administration  Asset Sale and
Termination Act, as well as obligations of the Alaska Power  Administration  and
successor agencies, continue beyond the Transaction Date, and that the execution
of this  Agreement in no way relieves  the Alaska Power  Administration  nor any
Purchaser of such continuing obligations.

All capitalized  terms not defined herein shall have the same meaning given them
in the Transition Plan (including exhibits).

Therefore, the Parties agree to extend the Transition Plan as follows:

       THIS Agreement for the Extension of the Transition  Plan  incorporates by
       reference  the following  documents  and all of the rights,  obligations,
       requirements, and provisions therein:

              The  1996  Transition  Plan,   consisting  of  thirteen   Sections
              contained on ten pages; incorporating therein, specifically:

                    Exhibit A, consisting of 33 pages;  Exhibit B, consisting of
                    5 pages;  Exhibit  C,  consisting  of 12 pages;  Exhibit  D,
                    consisting  of 25 pages;  and,  Exhibit E,  consisting  of 9
                    pages.

Eklutna Transition Plan Extension Agreement Page 1 of 5






THE Parties further agree to the following modifications with regard to the 1996
Transition Plan by this Agreement:

1.     The  Transition  Plan  will  not  expire  upon  completion  of the  tasks
       specified therein.  However,  the arrangements and timetable for transfer
       of operations,  maintenance,  and power marketing,  as well as operation,
       maintenance,  and  administration  of the Project will no longer  require
       consultation  with APA,  nor will office space and access be provided for
       an APA  real  estate  person  after  the  Transaction  Date.  (Reference:
       Transition Plan Section 2 and Section 5)

2.     The transfer of data and  documents to the Eklutna  Purchasers  after the
       Transaction  Date shall occur no later than January 1, 1998.  (Reference:
       Transition Plan Section 7)

3.     The effective date of this Agreement shall be the  Transaction  Date, but
       in any event no later than November 28, 1997.

4.     The division of  responsibilities  among the Eklutna Purchasers after the
       Transaction Date will be as described in Exhibit E, Paragraph (A)(2).

5.     The sixth  sentence  of  Paragraph  (A) (3) of Exhibit E is  modified  to
       delete  reference to an "Ownership  and Operating  Agreement,"  and as so
       modified  reads  as  follows:  "Decisions  of the EOC  will be by  double
       majority  (a vote of two of the three  Eklutna  Purchasers  whose  shares
       total at least 51% of the Eklutna Project shares) unless otherwise agreed
       to by the Eklutna Purchasers."

THE  parties  further  agree  to the  following  in  regard  to  the  ownership,
operation, and maintenance of the Eklutna Project:
     1.   An Eklutna  Purchaser's  interest in the Eklutna  Project  will not be
          modified or changed by any assignment or transfer, except upon consent
          of each  Eklutna  Purchaser.  An Eklutna  Purchaser's  interest may be
          transferred or assigned among the Eklutna  Purchasers in proportion to
          their  respective  Project  interest or by such other allocation as to
          which each Eklutna  Purchaser  agrees.  Transfer or  assignment  of an
          Eklutna  Purchaser's  interest  to  entities  other  than  an  Eklutna
          Purchaser will be subject to a first right of refusal by the remaining
          Eklutna Purchasers, with such right to be exercised within 180 days of
          receipt of written  notification.  If no remaining  Eklutna  Purchaser
          elects to acquire such interest,  the transferring  Eklutna  Purchaser
          shall indemnify the remaining Eklutna  Purchasers for all expenditures
          which  would not  otherwise  be  required,  but for which the  Eklutna
          Project  becomes  obligated  in  meeting  licensing  requirements  and
          regulations  which were exempted for the original  Eklutna  Purchasers
          under the Alaska Power Administration Asset Sale and Termination Act.

     2.   The terms and conditions of this Agreement will apply to any successor
          or  assign  of  an  Eklutna  Purchaser,  whether  such  succession  or
          assignment results from security assignment,  merger,  acquisition, or
          any other  disposition by the Eklutna Purchaser of its Eklutna Project
          share.
Eklutna Transition Plan Extension Agreement Page 2 of 5






     3.   Exhibits  A through D of the  CONTRACT  FOR  ELECTRIC  SERVICE  TO THE
          CHUGACH ELECTRIC  ASSOCIATION,  INC.; MATANUSKA ELECTRIC  ASSOCIATION,
          INC.; AND MUNICIPALITY OF ANCHORAGE, MUNICIPAL LIGHT & POWER, Contract
          No.  DE-SC85-95AP  1 0042 shall  continue in effect until such time as
          revised or terminated  by action of the EOC.  Should any part of these
          Exhibits A through D conflict with the Transition  Plan as modified by
          this Agreement, the Transition Plan shall prevail.

       Dated at Anchorage, Alaska this 2nd day of October 1997.


Municipality of Anchorage



 /s/ George J. Vakalis for
Larry D. Crawford
Municipal Manager


Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager


Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager







Eklutna Transition Plan Extension Agreement Page 3 of 5







The APA hereby states its non-objection to the foregoing Agreement for Extension
of "1996 EKLUTNA HYDROELECTRIC PROJECT TRANSITION PLAN"



Alaska Power Administration, a unit of the
U.S. Department of Energy


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator







Eklutna Transition Plan Extension Agreement Page 4 of 5






RECOMMENDED:                                APPROVED AS TO FORM:


Anchorage Municipal Light & Power           MUNICIPALITY OF ANCHORAGE


 /s/ Hank Nikkels                           /s/ Mary K. Hughes
Hank Nikkels                                Mary K. Hughes
Acting General Manager                      Municipal Attorney



RECOMMENDED:


MUNICIPALITY OF ANCHORAGE



 /s/ George J. Vakalis
George J. Vakalis
Operations Manager







Eklutna Transition Plan Extension Agreement Page 5 of 5





                                CLOSING AGREEMENT
         THIS  AGREEMENT is made this 2nd day of October,  1997,  by and between
the United States of America, acting through the Alaska Power Administration,  a
unit of the United States Department of Energy (hereafter "United States"),  and
the Municipality of Anchorage, d/b/a Municipal Light and Power, Chugach Electric
Association,   Inc.,  and  Matanuska  Electric   Association,   Inc.  (hereafter
collectively "the Purchasers").
                                    Recitals
         WHEREAS,  the Purchasers executed a Memorandum of Understanding on July
25,  1989,  in which  Agreement  at  Paragraph 2 they  mutually  declared  their
respective  proportionate  shares of their  undivided  interest  in the  Eklutna
assets.
         WHEREAS,  on August 2,  1989,  the  United  States  and the  Purchasers
entered into that particular  contract entitled the Eklutna Purchase  Agreement,
by which the United States agreed to sell and the Purchasers  agreed to purchase
the Eklutna  Hydroelectric  Project, and its real property interests,  fixtures,
equipment,  personalty,  contract  and  water  rights,  and other  interests  as
identified in that Agreement (hereafter "Eklutna Project").
         WHEREAS, by enactment of the Alaska Power Administration Asset Sale and
Termination  Act of 1995  (hereafter  "the Sale  Act),  Public Law  104-58,  the
Congress  authorized the Secretary of Energy to sell the Eklutna  Project to the
Purchasers in accordance with the terms of the Sale Act and the Eklutna Purchase
Agreement.
         WHEREAS,  on May 28, 1996, the United States and the Purchasers adopted
the 1996 Eklutna  Hydroelectric  Project  Transition Plan in accordance with the
terms  of the  Eklutna  Purchase  Agreement  for  the  purpose  of  facilitating
arrangements for the transfer of ownership of the Eklutna

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Page 1 of 12






Project to the Purchasers
          WHEREAS,  the United  States and the  Purchasers  are prepared at this
time to complete the purchase and sale  transaction  contemplated by the Eklutna
Purchase  Agreement,  the Sale Act, and the 1996 Eklutna  Hydroelectric  Project
Transition  Plan,  -subject to certain  continuing  obligations as identified in
this Agreement.
                               Terms of Agreement
         NOW, THEREFORE, the United States and the Purchasers agree as follows:
1.   Payment  by  Purchasers,  The  United  States  acknowledges  receipt of the
     following sums paid by the Purchasers in complete and final satisfaction of
     the  purchase-price  payment  requirement  as  provided by Section 5 of the
     Eklutna Purchase Agreement, Amendment No. 3 to that Agreement and Exhibit B
     to that Amendment:

         Municipality of Anchorage, d/b/a ML&P              16/30   $3,174,933.
         Chugach Electric Association, Inc.                  9/30   $1,785,900.
         Matanuska Electric Association, Inc.                5/30   $  992,167.
                                                            ------- ------------
                                    Total Received:         30/30   $5,953,000
2.   Instruments  Delivered.  The  parties  acknowledge  that the United  States
     delivered on the date of this  Agreement,  and the  Purchasers  accepted on
     that date, the instruments identified in Appendix A to this Agreement.

3.   Remaining  Federal  Obligations  Relating to  Transfer  of Eklutna  Project
     Interests to Purchasers.  At the time of this Agreement,  the United States
     is unable to convey to the  Purchasers  the  properties or interests in the
     Eklutna  Project  identified  in Appendix B to this  Agreement.  The United
     States,  acting  through  the United  States  Department  of  Energy,  will
     complete conveyance of

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     the outstanding  interests identified in Appendix B no later than June 1, 
     1998.For a period of 180 days after the date of this Agreement, the parties
     reserve the right to further identify, by mutual agreement, instruments and
     interests,  if any,  that should be added to  Appendix B after  closing and
     will cooperate with one another in good faith in so doing.

4.   Purchasers' Operational  Arrangements.  The requirements of Section 10.c of
     the Eklutna Purchase Agreement  regarding  establishment of organizational,
     functional  and  staffing  arrangements  for  operations,  maintenance  and
     Administration  of the Eklutna  Project  are  satisfied  by that  agreement
     entitled 1996 Eklutna Hydroelectric Project Transition Plan, as modified by
     that   agreement   entitled   Agreement   for  Extension  of  1996  Eklutna
     Hydroelectric  Project  Transition  Plan by and among the  Municipality  of
     Anchorage,  d/b/a Municipal Light & Power,  Chugach  Electric  Association,
     Inc., and Matanuska Electric Association, Inc, dated October 2, 1997, which
     agreements are attached hereto as Appendix C.

5.   Unresolved Matter.  Notwithstanding the closing of the Eklutna Project sale
     through this Agreement, the parties acknowledge that they have not resolved
     the question of whether the United States is required to provide warranties
     of title in real property conveyance and transfer instruments issued to the
     Purchasers  under  the Sale Act and the  Eklutna  Purchase  Agreement.  The
     United  States  and  the  Purchasers  presently  have  differing  positions
     concerning this question. The warranty question is presently pending before
     the Comptroller General, and an opinion from that official was not received
     before  closing of the  Eklutna  Project  sale.  Although  the  Comptroller
     General's  opinion will not be binding on the  Purchasers,  it will provide
     guidance  to the  United  States on  the-unresolved  question  relating  to
     warranty obligations. By entering this Agreement, neither the United States
     nor the Purchasers waive any position,  right,  claim or defense related to
     the question of whether the

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     United  States  must  provide  Warranties  to the  Purchasers  in real  
     property transfer instruments.

6.   Federal  Obligations in Response to Real Property Title Defects.  It is the
     intent of the United States to convey to the  Purchasers  all right,  title
     and  interest  the United  States has in the Eklutna  Project.  The parties
     believe that the United  States is  conveying  sufficient  right,  title or
     interest  to all real  property  identified  in  Appendix A in the  Eklutna
     Project as constructed and used by the United States. However, in the event
     that the right,  title or  interest  transferred  by the United  states was
     insufficient,  at the time of transfer,  the following  procedures shall be
     employed to cure such insufficiencies:

     a.   If after  the date of this  Agreement,  a third  party  initiates  any
          action (including without  limitation an action for damages,  to quiet
          title,  or for injunctive  relief)  challenging  any title,  interest,
          license  or  right-of-way  in or to  real  property  identified  in an
          instrument  delivered by the United States to the Purchasers  pursuant
          to the Eklutna  Purchase  Agreement  and the Sale Act, the  Purchasers
          shall  defend,  and may settle,  the action in good  faith,  and shall
          provide  notice  of the  action  to the  Secretary  of  Energy  or his
          successor.

     b.   If a court of  competent  jurisdiction  enters a judgment or ruling on
          the  merits of a case,  holding  or  otherwise  establishing  that the
          title,  interest  license or  right-of-way  in or to real property was
          insufficient  on the date of transfer to provide the  Purchasers  with
          the beneficial use,  enjoyment and occupancy of the Eklutna Project as
          constructed  and  transferred  by the United  States,  then the United
          States,  in  accordance  with  applicable  law and  subject to a prior
          appropriation  by  Congress  for  that  purpose,  shall  acquire,  for
          conveyance to the Eklutna Purchasers,  the right, title or interest in
          or  to  real  property   necessary  to  provide  the  Purchasers  with
          sufficient  right,  title or interest to allow for the beneficial use,
          enjoyment and occupancy of the Eklutna Project. Alternatively, at the

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          election of the Purchasers, they may acquire the necessary right, 
          title or interest and the United States,in accordance with applicable 
          laws and subject to a prior appropriation by Congress for that 
          purpose, shall reimburse the Purchasers for the costs of acquisition.

     c.   Before the Purchasers  settle an action described in subparagraph a of
          this  paragraph 6, they shall notify the United States of their intent
          to do so and tender the defense of the action to the United States. If
          the United States accepts the tender,  it shall defend the case to its
          conclusion  on the  merits  or  settle  the  action  on terms it deems
          advisable.  If the United States  declines the tender,  the Purchasers
          shall be free to  settle  the  action  on  whatever  terms  they  deem
          appropriate.  If the  Purchasers  settle an action  identified  in the
          preceding  paragraph 6.b., then the United States,  in compliance with
          applicable  laws and subject to an  appropriation  by the Congress for
          that purpose,  shall  reimburse the Purchasers for the payment made in
          settlement.

     d.   The United  States,  acting  through the  Department  of Energy or its
          successor,  and the  Purchasers  may agree at any time that the right,
          title,  interest,  license  or  right-of-way  in or to  real  property
          conveyed by an instrument  identified in Appendix A to this  Agreement
          or conveyed pursuant to paragraph 3 of this Agreement is insufficient,
          in which event the United States,  in accordance  applicable  laws and
          subject to a prior  appropriation  by the Congress  for that  purpose,
          shall acquire the necessary interest and transfer it to the Purchasers
          or reimburse the Purchasers for the costs of such acquisition.

     e.   In connection  with the request for an  appropriation  to fund federal
          obligations  under this paragraph 6, the Purchasers shall petition the
          Congress  for  reimbursement  of  their  costs of  acquiring  property
          interests or settling claims of insufficient interest. Nothing in this
          Agreement shall limit the Purchasers'  rights to seek an appropriation
          for any purpose for which they might otherwise seek

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          an appropriation. Nothing in this Agreement obligates Congress to make
          any   appropriations.   In  the  event   Congress  fails  to  make  an
          appropriation,  the United States has no duties to perform any work or
          fund the cure of any  insufficiencies.  The Purchasers  shall seek any
          appropriation  from Congress pursuant to this paragraph 6. The parties
          reserve  the right to seek  judicial  redress in a court of  competent
          jurisdiction.

     f.   In the event a court holds that a  conveyance  or transfer  instrument
          was  ineffective  to convey or transfer to the Purchasers the right to
          operate the Eklutna Project, or any part thereof,  and that the right,
          title or interest  purported to have been conveyed or  transferred  to
          the  Purchasers  by the  United  States  remains  vested in the United
          States,  then the Secretary of Energy or his designee hereby grants to
          the  Purchasers,  without  the need for further  action,  a license to
          enable the Purchasers to continue to operate the Eklutna Project. Such
          license  shall  remain in effect  until the  United  States is able to
          convey or transfer the right,  title or interest,  the  conveyance  or
          transfer of which was held to be ineffective  pursuant to the original
          instrument.

     g.   The United States' obligation to provide sufficient title extends only
          to the Eklutna  Project as constructed  and  transferred by the United
          States. In the event that the Purchasers  subsequently modify, improve
          or  otherwise  change any portion of the Eklutna  Project,  the United
          States is under no obligation to provide  sufficient right,  title, or
          interest in real  property for those  modifications,  improvements  or
          changes.  Furthermore,  in the event any  right,  title,  or  interest
          becomes  insufficient due to a modification,  improvement or any other
          change  made to the  Eklutna  Project as  originally  constructed  and
          transferred, then this paragraph 6 shall become inapplicable.

7.   Section 17(b) Easements. Pursuant to Section 10b(3) of the Eklutna Purchase
     Agreement,  the  United  States  represents  to  the  Purchasers  that  the
     instruments identified in Appendix A to this

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     Agreement provide the Purchasers with rights in easements  reserved to
     the  United  States  under  Section  17(b)  of  the  Alaska  Native  Claims
     Settlement  Act, 43 U.S.C.  ss.  1616(b) which are sufficient for continued
     operation, repair and replacement of Eklutna facilities.

8.   No Merger.  The  doctrine  of merger  shall not apply (a) to the rights and
     obligations of the parties under this Agreement,  and (b) to the rights and
     obligations of the parties specifically  relating to the sufficiency of the
     right, title or interest in real property  transferred or to be transferred
     in the Eklutna Project.

9.   Judicial  Remedies.  Nothing  in this  Agreement  or in the  conveyance  or
     transfer instruments delivered by the United States to the Purchasers shall
     deprive the parties of any judicial  remedy to which they may  otherwise be
     entitled by contract or under law.

10.  Correction  of Errors,  The  parties  shall  cooperate  with one another to
     correct any typographical or inadvertent  errors discovered in documents or
     instruments issued under the Eklutna Purchase Agreement. Correction of such
     documents may require  substitution  of a new instrument in a form suitable
     for recordation.

11.  Environmental  Expenditures.  Purchase orders E-97-035 E-97-036,  E-97-037,
     and E-97- 038, issued on March 11, 1997,  shall terminate on June 30, 1998,
     and no further  requests  for  payment of  environmental  expenses  will be
     accepted after that date,  subject to the Purchase Agreement and applicable
     environmental law. Invoices submitted by the Purchasers before July 1, 1998
     will be processed and paid.

12.  Generator  Rewind  Contract,  The United States will continue to administer
     Contract  DE-  AC-85-95AP0043  (commonly  known  as  the  Generator  Rewind
     Contract) to a successful  conclusion.  The  Purchasers  agree to allow the
     United States and the Contractor under the Generator Rewind

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     Contract  access to the  facilities  so that the United States and the
     Contractor  may  complete  work  under the  Contract.The  Purchasers  shall
     provide an on-site  facility to the Contractor  and the United  States,  to
     include office space, telephone,  furniture, and the usual amenities.  When
     the Contractor completes performance,  the Contractor will issue a warranty
     for its work. The United States hereby assigns the Contractor's warranty to
     the Purchasers, effective upon the United States' receipt of the warranty.

13.  Satisfaction of Conditions  Precedent to Closing.  All conditions precedent
     to transfer of the Eklutna  Project to the Purchasers and to closing of the
     Eklutna Project sale have been satisfied or are hereby waived.

14.  Notice to Parties.  Notices  under this  Agreement or the Eklutna  Purchase
     Agreement shall be given to the following persons:

     For the United States: Administrator, Alaska Power Administration, Juneau
     For the Purchasers:
     Municipality of Anchorage, d/b/a Municipal Light & Power: General Manager
     Chugach Electric Association, Inc.: General Manager
     Matanuska Electric Association, Inc.: General Manager
Notices to the Purchasers shall be given to each of the Purchasers.

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                                           THE UNITED STATES OF AMERICA
                                            UNITED STATES OF AMERICA
                                            Department of Energy
                                            Alaska Power Administration


Date: October 2, 1997                       By: /s/ Rodney L. Adelman
     ----------------                          ----------------------
                                               Rodney L. Adelman
                                               Administrator

                                              THE EKLUTNA PURCHASERS

                                            MUNICIPALITY OF ANCHORAGE
                                            d/b/a Municipal Power & Light


Date: 2 Oct 97                              By: /s/ George Vakalis for
     ---------------------                     -------------------
                                               Larry D. Crawford
                                               Municipal Manager

                                            CHUGACH ELECTRIC ASSOCIATION, INC.


Date: Oct 2. 1997                           By: /s/ Eugene N. Bjornstad
     -------------------                       ------------------------
                                               Eugene N. Bjornstad
                                               General Manager

                                            MATANUSKA ELECTRIC ASSOCIATION, INC.


Date: Oct 2, 1997                           By: /s/ Wayne D. Carmony
     ------------------                        ---------------------
                                               Wayne D. Carmony
                                               General Manager

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                                 ACKNOWLEDGMENTS

UNITED STATES OF AMERICA
 DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

STATE OF ALASKA                             )
                                            ) ss:
THIRD JUDICIAL DISTRICT                     )

         The foregoing  instrument  was  acknowledged  before me this 2nd day of
October,  1997,  by  Rodney  L.  Adelman,  Administrator  of  the  Alaska  Power
Administration, a unit of the United States Department of Energy.

                                                      /s/ Lee Anne Mackay
                                                Notary Public in and for Alaska.
                                                Residing at Anchorage
                                                My commission expires: 5/25/2000

MUNICIPALITY OF ANCHORAGE
d/b/a MUNICIPAL LIGHT & POWER

STATE OF ALASKA                             )
                                            ) ss:
THIRD JUDICIAL DISTRICT                     )

         The foregoing  instrument  was  acknowledged  before me this 2nd day of
October,   1997,  by  George  J.  Vakalis,   Acting  Municipal  Manager  of  the
Municipality of Anchorage d/b/a Municipal Light & Power.

                                                      /s/ Lee Anne Mackay
                                                Notary Public in and for Alaska.
                                                Residing at Anchorage
                                                My commission expires: 5/25/2000
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CHUGACH ELECTRIC ASSOCIATION, INC

STATE OF ALASKA                             )
                                            ) ss:
THIRD JUDICIAL DISTRICT                     )

         The foregoing  instrument  was  acknowledged  before me this 2nd day of
October,  1997,  by Eugene N.  Bjornstad,  General  Manager of Chugach  Electric
Association,  Inc., an Alaska electric cooperative corporation, on behalf of the
corporation.


                                                      /s/ Lee Anne Mackay
                                                Notary Public in and for Alaska.
                                                Residing at Anchorage
                                                My commission expires: 5/25/2000


MATANUSKA ELECTRIC ASSOCIATION, INC

 STATE OF ALASKA                            )
                                            ) ss:
THIRD JUDICIAL DISTRICT                     )

         The foregoing  instrument  was  acknowledged  before me this 2nd day of
October,  1997,  by Wayne D.  Carmony,  General  Manager of  Matanuska  Electric
Association,  Inc., an Alaska electric cooperative corporation, on behalf of the
corporation.


                                                      /s/ Lee Anne Mackay
                                                Notary Public in and for Alaska.
                                                Residing at Anchorage
                                                My commission expires: 5/25/2000

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RECOMMENDED:                                     APPROVED AS TO FORM:

ANCHORAGE MUNICIPAL LIGHT & POWER                MUNICIPALITY OF ANCHORAGE


 /s/ Hank Nikkels                                /s/ Mary K. Hughes
Hank Nikkels                                        Mary K. Hughes
Acting General Manager                              Municipal Attorney


RECOMMENDED:

MUNICIPALITY OF ANCHORAGE



 /s/ George J. Vakalis
George J. Vakalis
Operations Manager


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                                CLOSING AGREEMENT
                                   APPENDIX A
                              INSTRUMENTS DELIVERED






                                   APPENDIX A
1. Bill of Sale
2. Quitclaim Deed, Palmer Substation
3. Quitclaim Deed, Reed Substation
4. Patent, Anchorage Substation (from BLM)
5. Quitclaim Deed, Anchorage Substation
6. Assignment and Transfer of Easement, Wasilla Radio Relay Site
7. Assignment and Transfer of Easement, Transmission Line (Palmer)
8. Assignment and Transfer of Easement, Transmission Line (Anchorage)
9. Assignment and Transfer of Reserved Easement, Transmission Line 
   (Palmer 44LD513)
10. Assignment and Transfer of Reserved Easement, Transmission Line 
    (Anchorage 44LD513)
11. Assignment and Transfer of Easement Use Rights, Transmission Line
12. Assignment and Transfer of Easement Use Rights,  Aqueduct 
13. Assignment and Transfer of Flowage, Flooding and Reservoir Easement
14. Decision for Assignment of BLM Right-of-Way Grant, Serial Number AA- 70133
    (from BLM) 
15. Assignment and Transfer of Power Project Facilities
16. Assignment and Transfer of Right-of-Way Licenses
17. Assignment  and  Transfer of Contract  No.  85-80AP10022.000  
18. Assignment and Transfer of "Cooperative  Land Management  Agreement
    Between  the  United  States  of  America  Through  the  Alaska  Power
    Administration  and the Bureau of Land  Management  and the State of Alaska
    Through  the  Alaska  Division  of Parks  and  Outdoor  Recreation  for the
    Management of Certain Lands in the Upper Eklutna Valley"
19. Assignment  and Transfer of  Agreement  for Public Water Supply and
    Energy Generation from Eklutna Lake, Alaska, as Supplemented 
20. Quitclaim Deed, Federal  Reserved-Water  Right Under the Eklutna  Project 
    Act of 1950,64 Stat.382, As  Amended, Including State of Alaska Water Rights
    Certificate  of Appropriation  (Amended)  ADL 44944
21. Assignment and Transfer of the June 3, 1957, Permit Letter; and Revocable 
    Permit of Use Dated April 9, 1958;  Regarding the Knik River Bridge
22. Assignment of Contract No. DE-SC85-95AP10042






                                CLOSING AGREEMENT
                                   APPENDIX B
                              UNCONVEYED INTERESTS
                              [None at this time.]





                                CLOSING AGREEMENT
                                   APPENDIX C
               1996 EKLUTNA HYDROELECTRIC PROJECT TRANSITION PLAN
                                       and
                           AGREEMENT FOR EXTENSION OF
               1996 EKLUTNA HYDROELECTRIC PROJECT TRANSITION PLAN




                                                             Duplicate Original

                                  UNITED STATES
                              DEPARTMENT OF ENERGY
                           ALASKA POWER ADMINISTRATION

                             EKLUTNA PROJECT, ALASKA

                                  BILL OF SALE
This BILL OF SALE is made this 2nd day of  October,  1997,  between  the  UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is, 2770 Sherwood  Lane,  Juneau,  AK 99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination Act, 109 Stat. 557, as amended, herein referred to as UNITED STATES,
and the Municipality of Anchorage,  doing business as Municipal Light and Power,
the Chugach Electric Association,  Inc., and the Matanuska Electric Association,
Inc.,  collectively referred to herein as EKLUTNA PURCHASERS,  whose address is,
Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.
        WITNESSETH,  that the UNITED STATES,  for mutual benefits and other good
and valuable consideration,  hereby sells, transfers and delivers to the EKLUTNA
PURCHASERS,   their  successors  or  assigns,  all  right,  interest,  duty  and
obligation of the UNITED STATES in the following:

                                         THE ITEMS DESCRIBED IN EXHIBIT A






ALL ITEMS ARE SOLD, TRANSFERRED AND DELIVERED AS IS. THE UNITED
STATES MAKES NO WARRANTY OF ANY KIND ON ANY OF THE ITEMS BEING
SOLD TRANSFERRED OR DELIVERED.






The EKLUTNA PURCHASERS hereby accept all rights, titles,  interests,  duties and
obligations in the above items.  IN WITNESS  THEREOF,  the parties have executed
this BILL OF SALE as of the day and year first written above.

Acceptance:                                United States of America
Municipality of Anchorage                  Department of Energy
dba Municipal Light and Power              Alaska Power Administration


 /s/ George Vakalis for                    /s/ Rodney L. Adelman
Larry D. Crawford                          Rodney L. Adelman
Municipal Manager                          Administrator



Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager


Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager






Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George J. Vakalis
George J. Vakalis
Operations Manager



Approved as to Form:
Municipality of Anchorage


 /s/ Mary K. Hughes
Municipal Attorney






EXHIBIT A

The Eklutna Project Asset List was filed previously.

The  Eklutna  Project  transmission  line  and  all  associated   appurtenances,
equipment, and facilities are included in this Bill of Sale.

Warranties,  if any,  which were issued to APA by third  parties are conveyed to
the Eklutna Purchasers.





Duplicate original
QUITCLAIM DEED
Palmer Substation


This  QUITCLAIM DEED is made this 2nd day of October,  1997,  between the UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is 2770 Sherwood  Lane,  Juneau,  AK  99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, as amended,  herein  referred to as the UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable   consideration,   hereby   RELEASES  and  QUITCLAIMS  to  the  EKLUTNA
PURCHASERS, their successors or assigns, as tenants in common according to their
fractional  interests as more particularly set forth herein,  all right,  title,
and interest of the UNITED STATES,  in a portion of the Southeast Quarter of the
Northwest  Quarter  of  Section  4,  Township  17  North,  Range 2 East,  Seward
Meridian,  acquired  by a Warranty  Deed  recorded  February  16,  1952,  in the
official records of Palmer Recording Precinct, Third Judicial District, State of
Alaska, in Book 14 at page 157, and more particularly described as follows:

Beginning  at a point which is situate  42.5 feet North 45000' West of center of
Section 4, Township 17 North,  Range 2 East, Seward Principal  Meridian;  thence
due West for a distance  of 170 feet;  thence  due North for a  distance  of 170
feet;  thence due East for a distance of 169.9 feet;  thence South  O(degree)13'
East for a  distance  of 170 feet to the point of  ending  which is the point of
beginning, said parcel of land to contain 0.66 acres.







Together with all equipment and associated facilities.

The  right,  title  and  interest  of the  UNITED  STATES  hereby  released  and
quitclaimed to the EKLUTNA PURCHASERS vests in the EKLUTNA PURCHASERS as tenants
in common to the full extent of the undivided interests set forth below:

Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

IN WITNESS THEREOF, the UNITED STATES has executed this QUITCLAIM DEED as of the
day and year first written above.


UNITED STATES OF AMERICA
Department of Energy
Alaska Power Administration


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator



ACKNOWLEDGMENT

STATE OF ALASKA                             )
                                            )
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy.
Witness my hand and official seal.


                                  /s/ Lee Anne Mackay
                                  Notary Public
(Seal)                            My Commission expires: 5/25/2000







Duplicate original
QUITCLAIM DEED
Anchorage Substation


This  QUITCLAIM DEED is made this 2nd day of October,  1997,  between the UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is 2770 Sherwood  Lane,  Juneau,  AK  99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, as amended,  herein  referred to as the UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.


WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable   consideration,   hereby   RELEASES  and  QUITCLAIMS  to  the  EKLUTNA
PURCHASERS, their successors or assigns, as tenants in common according to their
fractional  interests as more particularly set forth herein,  all right,  title,
and interest of the UNITED STATES, in the following described lands:

Seward Meridian, Alaska

T. 13 ., R. 3 W.,

Sec. 27, NE1/4NE1/4NW1/4

Together with all equipment and associated facilities.







The  right,  title  and  interest  of the  UNITED  STATES  hereby  released  and
quitclaimed to the EKLUTNA PURCHASERS vests in the EKLUTNA PURCHASERS as tenants
in  common to the full  extent  of the  undivided  interests  set  forth  below:
Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

IN WITNESS THEREOF, the UNITED STATES has executed this QUITCLAIM DEED as of the
day and year first written above.


UNITED STATES OF AMERICA
Department of Energy
Alaska Power Administration


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator





ACKNOWLEDGMENT

STATE OF ALASKA                             )
                                            )
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy.
Witness my hand and official seal.



                                  /s/ Lee Anne Mackay
                                  Notary Public
(Seal)                            My Commission expires: 5/25/2000








Duplicate original
QUITCLAIM DEED
Reed Substation


This  QUITCLAIM DEED is made this 2nd day of October,  1997,  between the UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is 2770 Sherwood  Lane,  Juneau,  AK  99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, as amended,  herein  referred to as the UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable   consideration,   hereby   RELEASES  and  QUITCLAIMS  to  the  EKLUTNA
PURCHASERS, their successors or assigns, as tenants in common according to their
fractional  interests as more particularly set forth herein,  all right,  title,
and interest of the UNITED STATES,  in the following  described  property within
Section 19, Township 16 North,  Range 1 East,  Seward Meridian,  Alaska:  United
States Survey No. 9789. Together with all equipment and associated facilities.






The  right,  title  and  interest  of the  UNITED  STATES  hereby  released  and
quitclaimed to the EKLUTNA PURCHASERS vests in the EKLUTNA PURCHASERS as tenants
in  common to the full  extent  of the  undivided  interests  set  forth  below:
Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

IN WITNESS THEREOF, the UNITED STATES has executed this QUITCLAIM DEED as of the
day and year first written above.

UNITED STATES OF AMERICA
Department of Energy
Alaska Power Administration


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator


ACKNOWLEDGMENT

STATE OF ALASKA                             )
                                            )
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy.
Witness my hand and official seal.


                                  /s/ Lee Anne Mackay
                                  Notary Public
(Seal)                            My Commission expires: 5/25/2000







Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF EASEMENT
Wasilla Radio Relay Site
This ASSIGNMENT AND TRANSFER OF EASEMENT is made this 2nd day of October,  1997,
between  the UNITED  STATES OF  AMERICA,  as grantor  acting by and  through the
Department  of  Energy,  Alaska  Power  Administration,  whose  address  is 2770
Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing this
document,  pursuant to the  Reclamation  Act of June 17, 1902, 32 Stat.  388, as
amended,  the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  the Energy
Organization  Act of August 4, 1977,  91 Stat.  565, as amended,  and the Alaska
Power  Administration Asset Sale and Termination Act, 109 Stat. 557, as amended,
herein  referred to as the UNITED  STATES,  and the  Municipality  of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc., and the Matanuska Electric  Association,  Inc.,  collectively  referred to
herein as EKLUTNA  PURCHASERS,  GRANTEES,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.
         WITNESSETH,  that the UNITED STATES,  having  acquired a  communication
site easement,  for mutual  benefits and other good and valuable  consideration,
hereby grants, assigns, transfers, conveys, and sets over without reservation to
the  EKLUTNA  PURCHASERS,  their  successors  or  assigns,  as tenants in common
according to their fractional  interests as more  particularly set forth herein,
all right,  title, and interest of the UNITED STATES in the following  described
contract  and  grant of  easement,  located  in the  Palmer  Recording  District
(formerly Wasilla Recording District), Third Judicial District, State of Alaska:
         1.       Contract and Grant of Easement  dated April 7, 1955,  from Ila
                  Senske and W.M.  Senske,  recorded April 19, 1955, in book 11,
                  page 252, Wasilla Recording District.
Together  with all  right,  title  and  interest  to the  associated  radio  and
communication facilities.






                            CORPORATE ACKNOWLEDGMENT

State of Alaska                     )
                                    ) ss.
Third Judicial District                     )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997,  by  Eugene  N.  Bjornstad,   the  General  Manager  of  Chugach  Electric
Association, Inc., on behalf of said corporation.


                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000





                            CORPORATE ACKNOWLEDGMENT

State of Alaska                     )
                                    ) ss.
Third Judicial District                     )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska   Electric
Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000







 ACKNOWLEDGMENT

STATE OF ALASKA                             )
                                            )
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


                            CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000







The right, title and interest in and to all easement rights of the UNITED STATES
hereby  granted to the EKLUTNA  PURCHASERS  vests in the EKLUTNA  PURCHASERS  as
tenants in common to the full extent of the undivided interests set forth below:
Municipality  of  Anchorage,  d/b/a  Municipal  Light  and Power  16/30  Chugach
Electric Association,  Inc. 9/30 Matanuska Electric  Association,  Inc. 5/30 The
EKLUTNA  PURCHASERS  hereby accept the ASSIGNMENT  AND TRANSFER OF EASEMENT.  IN
WITNESS THEREOF, the said parties-have  executed this ASSIGNMENT AND TRANSFER OF
EASEMENT as of the day and year first written above.

Acceptance:
Municipality of Anchorage
dba Municipal Light and Power


 /s/ George J. Vakalis for
Larry D. Crawford
Municipal Manager

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager

United States of America
Department of Energy
Alaska Power Administration


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator









 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney





Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
ASSIGNMENT AND TRANSFER OF EASEMENT
Eklutna Project Transmission Line (Palmer Recording District)

This ASSIGNMENT AND TRANSFER OF EASEMENT is made this 2nd day of October,  1997,
between  the UNITED  STATES OF  AMERICA,  as grantor  acting by and  through the
Department  of  Energy,  Alaska  Power  Administration,  whose  address  is 2770
Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing this
document,  pursuant to the  Reclamation  Act of June 17, 1902, 32 Stat.  388, as
amended,  the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  the Energy
Organization  Act of August 4, 1977,  91 Stat.  565, as amended,  and the Alaska
Power  Administration Asset Sale and Termination Act, 109 Stat. 557, as amended,
herein referred to as UNITED STATES,  and the  Municipality of Anchorage,  doing
business as Municipal Light and Power, the Chugach Electric  Association,  Inc.,
and the Matanuska Electric Association, Inc., GRANTEES, collectively referred to
herein as EKLUTNA  PURCHASERS,  whose address is,  Eklutna  Project,  HC 04, Box
7785, Palmer, AK 99645.

WITNESSETH,  that the UNITED STATES, having acquired transmission line easements
from  various  land  owners,  for mutual  benefits  and other good and  valuable
consideration, hereby grants, assigns, transfers, conveys, and sets over without
reservation to the EKLUTNA  PURCHASERS,  their successors or assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,  all right,  title,  and interest of the UNITED  STATES in the following
described  contracts  and grants of easements,  located in the Palmer  Recording
District, Third Judicial District, State of Alaska:

100 Foot Right-of-Way

1.       Contract and Grant of Easement  dated  January 29,  1954,  from John L.
         Cope,  et ux., et al.,  recorded  April 14, 1954,  in book 17, pg. 201.
         (within E1/2SW1/4 Section 4, T 17N, R 2E)

2.       Contract and Grant of Easement dated August 6, 1953,  from L.C.  Stock,
         et ux.,  recorded  September  16,  1953,  in book 16, pg.  98.  (within
         W1/2NE1/4 and NE1/4NW1/4 Section 9, T 17N, R 2E)







3.       Contract  and Grant of  Easement  dated  April 27,  1953,  from  Robert
         Anderson,  et ux.,  recorded August 4, 1953, in book 16, pg. 9. (within
         SE1/4NW1/4 Section 9, T 17N, R 2E)

4.       Contract  and Grant of  Easement  dated  August 6,  1953,  from Carl R.
         Rasmussen,  et ux.,  recorded  September  16, 1953, in book 16, pg. 96.
         (within NW1/4SE1/4 Section 9, T 17N, R 2E)

5.       Contract and Grant of Easement dated  November 300, 1951,  from Clem H.
         Watkinson,  recorded  May  12,  1953,  in book  15,  pg.  113.  (within
         NE1/4SW1/4 Section 9, T 17N, R 2E)

6.       Contract and Grant of Easement  dated October 22,,  1952,  from Herbert
         Caulkins, et ux., recorded March 16, 1953, in book 14, pg. 235. (within
         SE1/4SW1/4 Section 9, T 17N, R 2E)

7.       Contract and Grant of Easement  dated October 25, 1951,  from Ernest H.
         Harrington,  recorded  March 16,  1953,  in book 14, pg.  233.  (within
         SW1/4SE1/4  Section 9;  NE1/4NW1/4 and NW1/4NE1/4  Section l6, T 17N, R
         2E)

8.       Contract and Grant of Easement  dated  October 29,  1951,  from Alba S.
         Brooks,  et ux.,  recorded March 16, 1953, in book 14, pg. 231. (within
         SW1/4NE1/4 and SE1/4NW1/4 Section 16, T 17N, R 2E)

9.       Contract and Grant of Easement dated October 12, 1951,  from Chester C.
         Liebing,  et ux., recorded March 16, 1953, in book 14, pg. 229. (within
         NW1/4SE1/4 and NE1/4SW1/4 Section 16, T 17N, R 2E)

10.      Contract  and Grant of  Easement  dated  March 26,  1953,  from  Robert
         Vanderhoff,  recorded  September 22, 1953, in book 16, pg. 103. (within
         Lot 2, and SW1/4SW1/4 and NE1/4SW1/4 Section 21, T 17N, R 2E)

75 Foot Right-of-Way

11.      Contract  and Grant of  Easement  dated April 12,  1995,  from Doyle R.
         McCombs,  et ux.,  recorded May 2, 1995, in book 0803, pg. 413. (within
         Lot 2 and 3 in the S1/2 Section 21, T 17N, R 2E)

12.      Contract  and Grant of  Easement  dated March 14,  1996,  from James A.
         Witt,  et ux.,  recorded May 2, 1996,  in book 0846,  pg. 473.  (within
         Tract B of Lot 2 in the SE1/4 Section 21, T 17N, R 2E)

13.      Contract and Grant of Easement  dated  October 9, 1957,  from Robert V.
         Vanderhoff, recorded March 13, 1958, in book 25, pg. 200. (within Lot 2
         and 3 in Section 21, T 17N, R 2E)

14.      Contract and Grant of Easement dated October 10, 1957,  from Victor G.
         Falk, Jr., et ux.,






         recorded January 31, 1958, in book 25, pg. 79. (within NW1/4SW1/4 
         Section 22; and NE1/4SE1/4 Section 21, T 17N, R 2E)

15.      Contract and Grant of Easement  dated  October 9, 1957,  from Victor G.
         Falk, et ux.,  recorded  January 31, 1958, in book 25, pg. 73.  (within
         NW1/4SW1/4 Section 22; and NE1/4SE1/4 Section 21, T 17N, R 2E)







16.      Contract and Grant of Easement dated  December 11 1957,  from Lauren F.
         Smith, et al, recorded  December 11, 1957, in book 24, pg. 306. (within
         SE1/4SW1/4 Section 22, T 17N, R 2E)

17.      Contract and Grant of Easement  dated  December 11, 1957,  from Paul W.
         Nelson,  et ux.,  recorded  December  12,  1957,  in book 24, pg.  317.
         (within NW1/4NE1/4 Section 27; and SW1/4SE1/4 Section 22, T 17N, R 2E)

18.      Contract  and Grant of Easement  dated  October 9, 1957,  from  Leonard
         Williams,  et ux.,  recorded  January  31,  1958,  in book 25,  pg. 67.
         (within NW1/4NE1/4 Section 27; and SW1/4SE1/4 Section 22, T 17N, R 2E)

19.      Contract and Grant of Easement  dated October 14, 1957,  from Ronald J.
         Heddles, et ux., recorded January 31, 1958, in book 25, pg. 55. (within
         SW1/4NE1/4 Section 27, T 17N, R 2E)

20.      Contract  and Grant of  Easement  dated  October 9, 1957,  from John P.
         King, et ux.,  recorded  January 31, 1958, in book 25, pg. 61.  (within
         W1/2SE1/4 Section 27, T 17N, R 2E)

21.      Contract  and Grant of  Easement  dated  October 9, 1957,  from Paul W.
         Nelson,  et ux.,  recorded  February  19,  1958,  in book 25, pg.  138.
         (within  NW1/4SE1/4 and SW1/4NE1/4 and NW1/4NE1/4  Section 34, T 17N, R
         2E)

22.      Contract and Grant of Easement  dated  October 9, 1957,  from Robert L.
         Burnham, et ux., recorded January 31, 1958, in book 25, pg. 49. (within
         SW1/4SE1/4 Section 34, T 17N, R 2E)

23.      Contract and Grant of Easement dated October 10, 1957,  from Francis S.
         Lee,  recorded November 26, 1958, in book 27, pg. 42. (within Lot 1 and
         2 in Section 3, T 16N, R 2E)

24.      Judgment on Declaration of Taking filed December 5, 1957,  from Russell
         Dow, et al., recorded December 4, 1959, in book Misc., pg. 112. (within
         Lot 2, 7, and 8 in Section 2, T 16N, R 2E)

Together with the transmission line and associated facilities.

30 Foot Wide Access Easements

25.      Contract and Grant of Easement dated  September 17, 1996, from James A.
         Witt, et ux., recorded October 21, 1996, in book 0869, pg. 861. (within
         Lot 2, Block 1 Circle  View  Subdivision,  Addition 3 in Section  21, T
         17N, R 2E)

26.      Contract and Grant of Easement  dated  January 29,  1997,  from Noel W.
         Woods and Carr-Gottstein  Associates,  recorded March 11, 1997, in book
         0885, pg. 240. (within






         SW1/4NE1/4 Section 16, T 17N, R 2E)
The right, title and interest in and to all easement rights of the UNITED STATES
hereby  granted to the EKLUTNA  PURCHASERS  vests in the EKLUTNA  PURCHASERS  as
tenants in common to the full extent of the undivided interests set forth below:

Municipality of Anchorage, d/b/a
Municipal Light and Power                                     16/30
Chugach Electric Association, Inc.                             9/30
Matanuska Electric Association, Inc.                           5/30

The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF
EASEMENT.

IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
EASEMENT as of the day and year first written above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager










 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The  foregoing  instrument  was  acknowledged  before  me  this  2nd day of
October, 1997, by Rodney L. Adelman, Administrator, Alaska Power Administration,
United States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF EASEMENT
Eklutna Project Transmission Line (Anchorage Recording District)

         This  ASSIGNMENT  AND  TRANSFER  OF  EASEMENT  is made  this 2nd day of
October,  1997,  between the UNITED STATES OF AMERICA,  as grantor acting by and
through the Department of Energy, Alaska Power Administration,  whose address is
2770 Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing
this document,  pursuant to the  Reclamation Act of June 17, 1902, 32 Stat. 388,
as amended,  the  Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  the
Energy  Organization  Act of August 4, 1977, 91 Stat.  565, as amended,  and the
Alaska Power  Administration  Asset Sale and Termination  Act, 109 Stat. 557, as
amended, herein referred to as UNITED STATES, and the Municipality of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc.,  and the Matanuska  Electric  Association,  Inc.,  GRANTEES,  collectively
referred to herein as EKLUTNA PURCHASERS,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.


WITNESSETH,  that the UNITED STATES, having acquired transmission line easements
from  various  land  owners,  for mutual  benefits  and other good and  valuable
consideration, hereby grants, assigns, transfers, conveys, and sets over without
reservation to the EKLUTNA  PURCHASERS,  their successors or assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,  all right,  title,  and interest of the UNITED  STATES in the following
described contracts and grants of easements,  located in the Anchorage Recording
District, Third Judicial District, State of Alaska:

75 Foot Right-of-Way

1.   Contract and Grant of Easement dated April 17, 1952, from B.O.  Rhodes,  et
     al.,  recorded November 5, 1953, in vol. 98, pg. 161. (within NE1/4 Section
     27, T 13N, R 3W)

2.   Contract and Grant of Easement dated April 17, 1952, from Paul R. Boniface,
     et ux.,  recorded  November 5, 1953, in vol. 98, pg. 171. (within N1/2NW1/4
     Section 26, T 13N, R 3W)








3.   Contract and Grant of Easement dated April 24, 1952, from Harold I. Moline,
     et al.,  recorded  November 5, 1953, in vol. 98, pg. 166. (within N1/2NE1/4
     Section 26, T 13N, R 3W)

4.   Contract  and Grant of  Easement  dated  April  24,  1952,  from  Arnold L.
     Muldoon,  recorded  September  30, 1953,  in book 97, pg. 9. (within  NW1/4
     Section 25, T 13N, R 3W)

5.   Contract and Grant of Easement dated April 24, 1952, from K.D. Bradley,  et
     ux., recorded  September 9, 1953, in vol. 97, pg. 43. (within NE1/4 Section
     25, T 13N, R 3W)

6.   Contract  and Grant of  Easement  dated  October  7,  1953,  from  Svend A.
     Bragstad,  et ux., recorded November 12, 1953, in vol. 98, pg. 246. (within
     government lot 4 and 5 in the SE1/4 Section 25; and within government lot 2
     in Section 36, T 15N, R 2W)

7.   Contract and Grant of Easement  dated  September  25,  1968,  from State of
     Alaska,  Department of Highways,  recorded  October 11, 1968, in Misc. Book
     166, pg. 318. (within Blocks 3, 4, and 5 of Lake Ridge Terrace Subdivision,
     Sections 25 and 36; and Lots 137, 138, 139, 145, 146, and 147,  Section 25,
     T 15N, R 2W)

8.   Contract and Grant of Easement  dated  September  25,  1968,  from State of
     Alaska,  Department of Highways,  recorded  October 11, 1968, in Misc. Book
     166, pg. 324. (within N1/2 Section 17, T 15N, R 2W)

9.   Contract  and Grant of  Easement  dated  October 7, 1953,  from  Russell H.
     Oberg,  et ux.,  recorded  November 23, 1953,  in vol. 99, pg. 71.  (within
     SW1/4SE1/4 Section 4; and NW1/4NE1/4 Section 9, T 15N, R 1W)

10.  Contract  and Grant of  Easement  dated  August 24,  1953,  from  Edward J.
     Goettlicher,  recorded  October  20,  1953,  in vol.  98, pg.  57.  (within
     SW1/4NE1/4 and NW1/4SE1/4 Section 4, T 15N, R 1W)

11.  Contract and Grant of Easement dated June 18, 1953, from William E. Ramsey,
     et ux.,  recorded October 20, 1953, in vol. 98, pg. 52. (within  government
     lot 4 in the NW1/4 Section 3; and within SE1/4NE1/4 and NE1/4SE1/4  Section
     4, T 15N, R 1W)

12.  Contract  and Grant of  Easement  dated  August  9,  1953,  from  Robert H.
     Stewart,  et ux.,  recorded November 12, 1953, in vol. 98, pg. 241. (within
     government lot 3 in the NW1/4 Section 3, T 15N, R 1W)

13.  Contract and Grant of Easement  dated  September  24,  1957,  from Henry W.
     Cuffel,  et ux.,  recorded  September 30, 1957, in book E3, pg. 56. (within
     U.S. Survey 2491 Section 2, T 16N, R 2E)







Together with the transmission line and associated facilities.
The right, title and interest in and to all easement rights of the UNITED STATES
hereby  granted to the EKLUTNA  PURCHASERS  vests in the EKLUTNA  PURCHASERS  as
tenants in common to the full extent of the undivided interests set forth below:

Municipality of Anchorage, d/b/a
Municipal Light and Power                                     16/30
Chugach Electric Association, Inc.                             9/30
Matanuska Electric Association, Inc.                           5/30

The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF
EASEMENT.

IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
EASEMENT as of the day and year first written above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager










 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000







Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF RESERVED EASEMENT
Eklutna Project Transmission Line (Palmer Recording District)

This ASSIGNMENT AND TRANSFER OF EASEMENT is made this 2nd day of October,  1997,
between  the UNITED  STATES OF  AMERICA,  as grantor  acting by and  through the
Department  of  Energy,  Alaska  Power  Administration,  whose  address  is 2770
Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing this
document,  pursuant to the  Reclamation  Act of June 17, 1902, 32 Stat.  388, as
amended,  the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  the Energy
Organization  Act of August 4, 1977,  91 Stat.  565, as amended,  and the Alaska
Power  Administration Asset Sale and Termination Act, 109 Stat. 557, as amended,
herein referred to as UNITED STATES,  and the  Municipality of Anchorage,  doing
business as Municipal Light and Power, the Chugach Electric  Association,  Inc.,
and the Matanuska Electric Association, Inc., GRANTEES, collectively referred to
herein as EKLUTNA  PURCHASERS,  whose address is,  Eklutna  Project,  HC 04, Box
7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna Hydroelectric Project ("Eklutna Project") and the Eklutna Project 115-kv
Transmission Line as a part thereof,  under the authority of the Eklutna Project
Act of 1950, 64 Stat.  382, as amended,  (I) to encourage  and promote  economic
development; (ii) to foster the establishment of essential industries; and (iii)
to further the self- sufficiency of national defense.

         WHEREAS,  through the construction and operation of the Eklutna Project
115-kv  Transmission Line the UNITED STATES  appropriated and reserved rights to
construct,  operate,  and maintain the transmission line and appurtenant  access
routes  across and through the lands  which were,  at the time of  construction,
federal lands. The UNITED STATES subsequently  conveyed certain of such lands by
patent,  subject to valid existing  rights.  These valid existing rights include
the rights transferred herein.






         WHEREAS,  the UNITED STATES' rights to construct,  operate and maintain
the Eklutna  Project  115-kv  transmission  line and  appurtenant  access routes
across the subject lands were reserved and excepted as easements from the patent
conveyances.

         WHEREAS, at the inception of the project,  Congress intended eventually
to transfer the Eklutna  Project to local public control in Alaska,  pursuant to
the Eklutna Project Act of 1950, 64 Stat. 382, as amended.

         WHEREAS, after transfer to the Eklutna Purchasers,  the Eklutna Project
will  continue  to serve  the  public  purposes  for  which  the  UNITED  STATES
constructed the project.

         WHEREAS,  pursuant to the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, the UNITED  STATES,  acting by and through the
Secretary of Energy,  is authorized  and directed to transfer its facilities and
easement rights to the EKLUTNA PURCHASERS.

         NOW THEREFORE,the UNITED STATES, for mutual benefits and other good and
valuable  consideration,  hereby  assigns,  transfers,  and  sets  over  without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,  all right,  title,  and interest in and to all  easement  rights of the
Alaska Power  Administration  which easement  reserved to the UNITED STATES,  to
construct,  operate, and maintain an electric  transmission line, and associated
facilities within a 75 foot wide right-of-way, including the rights necessary to
operate and maintain guy wires and anchors that extend beyond 37.5 feet from the
transmission line centerline, together with associated access routes, across the
following described lands:

Township 16 North, Range 2 East, Seward Meridian, Alaska
Section 2: Lots 3 and 4.
(patent 1198534)






Township  17 North,  Range 2 East,  Seward  Meridian,  Alaska  Section  16: That
portion of the S1/2 within the Matanuska River.  Section 21: That portion of the
N1/2 within the Matanuska River.

Together with the transmission line and associated facilities. The right, title,
and interest in and to all easement  rights of the UNITED STATES hereby  granted
to the EKLUTNA  PURCHASERS vests in the EKLUTNA  PURCHASERS as tenants in common
to the full extent of the undivided interests set forth below:
Municipality of Anchorage, d/b/a
Municipal Light and Power                                     16/30
Chugach Electric Association, Inc.                             9/30
Matanuska Electric Association, Inc.                           5/30
The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF
EASEMENT RIGHTS.


IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
EASEMENT as of the day and year first written above.


Acceptance:                                         United States of America
Municipality of Anchorage                           Department of Energy
dba Municipal Light and Power                       Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.







 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager





 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF RESERVED EASEMENT
Eklutna Project Transmission Line (Anchorage Recording District)

This ASSIGNMENT AND TRANSFER OF EASEMENT is made this 2nd day of October,  1997,
between  the UNITED  STATES OF  AMERICA,  as grantor  acting by and  through the
Department  of  Energy,  Alaska  Power  Administration,  whose  address  is 2770
Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing this
document,  pursuant to the  Reclamation  Act of June 17, 1902, 32 Stat.  388, as
amended,  the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  the Energy
Organization  Act of August 4, 1977,  91 Stat.  565, as amended,  and the Alaska
Power  Administration Asset Sale and Termination Act, 109 Stat. 557, as amended,
herein referred to as UNITED STATES,  and the  Municipality of Anchorage,  doing
business as Municipal Light and Power, the Chugach Electric  Association,  Inc.,
and the Matanuska Electric Association, Inc., GRANTEES, collectively referred to
herein as EKLUTNA  PURCHASERS,  whose address is,  Eklutna  Project,  HC 04, Box
7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna Hydroelectric Project ("Eklutna Project") and the Eklutna Project 115-kv
Transmission Line as a part thereof,  under the authority of the Eklutna Project
Act of 1950, 64 Stat.  382, as amended,  (I) to encourage  and promote  economic
development; (ii) to foster the establishment of essential industries; and (iii)
to further the self- sufficiency of national defense.

         WHEREAS,  through the construction and operation of the Eklutna Project
115-kv  Transmission Line the UNITED STATES  appropriated and reserved rights to
construct,  operate,  and maintain the transmission line and appurtenant  access
roads  across and through the lands  which  were,  at the time of  construction,
federal lands. The UNITED STATES subsequently  conveyed certain of such lands by
patent,  subject to valid existing  rights.  These valid existing rights include
the rights transferred herein.






         WHEREAS,  the UNITED STATES' rights to construct,  operate and maintain
the Eklutna  Project  115-kv  transmission  line and  appurtenant  access routes
across the subject lands were reserved and excepted as easements from the patent
conveyances.

         WHEREAS, at the inception of the project,  Congress intended eventually
to transfer the Eklutna  Project to local public control in Alaska,  pursuant to
the Eklutna Project Act of 1950, 64 Stat. 382, as amended.

         WHEREAS, after transfer to the Eklutna Purchasers,  the Eklutna Project
will  continue  to serve  the  public  purposes  for  which  the  UNITED  STATES
constructed the project.

         WHEREAS,  pursuant to the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, the UNITED  STATES,  acting by and through the
Secretary of Energy,  is authorized  and directed to transfer its facilities and
easement rights to the EKLUTNA PURCHASERS.

         NOW THEREFORE,  the UNITED STATES,  for mutual  benefits and other good
and valuable  consideration,  hereby assigns,  transfers,  and sets over without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,  all right,  title,  and interest in and to all  easement  rights of the
Alaska Power  Administration  which easement  reserved to the UNITED STATES,  to
construct,  operate, and maintain an electric  transmission line, and associated
facilities  within a 75 foot wide  right-of-way  between the Eklutna Power Plant
and the Anchorage  Substation,  and a 100 foot right-of-way  between the Eklutna
Power Plant and the Knik River,  including  the rights  necessary to operate and
maintain guy wires and anchors that extend beyond 37.5 feet from the






transmission line centerline, together with associated access routes, across the
following described lands:
75 Foot Right-of -Way
Township 15 North, Range 2 West, Seward Meridian, Alaska
Section 25: Lots 118, 119,  120, 132, 133, 136, 137, 138, 147 and 148.  (patents
50-65-0218, 1227812, 1227522, 1226892, 1234769, & 1223808)

Township 15 North, Range 1 West, Seward Meridian, Alaska

Section 30: Lots 44 and 54; E1/2W1/2NW1/4, E1/2NW1/4;
(patent 50-79-0015)

Section 19: S1/2NE1/4, SW1/4SE1/4, N1/2SE1/4;
(patent 50-79-0015)

Section 20: Lot 4; NW1/4NW1/4, W1/2SW1/4NW1/4;
(patent 50-79-0015)

Section 17: N1/2, SW1/4NW1/4SE1/4, N1/2NW1/4SE1/4, N1/2SW1/4SE1/4, N1/4SW1/4; 
(patent 50-79-0015)

Township 15 North, Range 1 West, Seward Meridian, Alaska

Section 8: Lot 185 and 216;
(patents 50-79-0015, and 1227503)

Section 9: S1/4SW1/4SW1/4; Lot 38, 39, 53, 54, 60, 72, 73, 85, 86, 95, 106, 107,
113, 114, 123, 124, 128, 129, 140, 142 and 143.  (patents  50-79-0015,  1167063,
1228996, 1230948, 1220415, 1222725, 1220905, 1167119, 1206697, 1223819, 1226356,
1226423, 1220899, 1223815, 1227011, and 1219272)

Township 16 North, Range 1 West, Seward Meridian, Alaska

Section 35: N1/2N1/2, S1/2NW1/4;
(patent 50-64-0101)

Section 25: N1/2SE1/4, NE1/4.
(patent 50-74-0164)

Township 16 North, Range 1 East, Seward Meridian, Alaska

Section 30: Lot 2; E1/2W1/2..
(patent 50-74-0164)

Township 16 North, Range 2 East, Seward Meridian, Alaska
Section 2: that portion of the E1/2E1/2 within the Knik River.






100 Foot Right-of-Way

Township 16 North, Range 2 East, Seward Meridian, Alaska

Section 17: E1/2, excluding patented U.S. Survey 3234 and A-016300; (MHA 059775)

Section 16: All, excluding A-016300, patented U.S. Surveys 3240, 3239, and 3561;
(MHA 059775)

Section 9: All,  excluding PLO 1394,  patented U.S.  Surveys 3234,  3242,  3164,
3235, 2866, 3236, 3160, 3076, 2942, 3070, 3077, 3240, 3239, and 3561, Lots 3, 4,
and 5 and patented Lots 1 and 2 of U.S. Survey 3568, and A-016300; (MHA 059775)

Section 10: All, excluding patented U.S. Surveys 3236, 3238, 3237 and 3363, Lots
4 and 5 of U.S. Survey 3568, A046426, A-054847 and A-058948; (MHA 059775)

Section 11: All, excluding patented U.S. Survey 3363, A-057850 and A-054213;
(MHA 059775)

Section 2: All  unsurveyed  portion,  excluding  patented  U.S.  Survey 2491 and
A054213; (MHA 059775)

Together with the transmission line and associated facilities.

The right,  title,  and  interest  in and to all  easement  rights of the UNITED
STATES hereby granted to the EKLUTNA  PURCHASERS vests in the EKLUTNA PURCHASERS
as tenants in common to the full  extent of the  undivided  interests  set forth
below:

Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF
EASEMENT.








IN WITNESS THEREOF,  the UNITED STATES has executed this ASSIGNMENT AND TRANSFER
OF EASEMENT as of the day and year first written above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager





 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage







 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






Duplicate original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
ASSIGNMENT AND TRANSFER OF EASEMENT USE RIGHTS
Eklutna Project Transmission Line

This  ASSIGNMENT  AND  TRANSFER OF  EASEMENT  USE RIGHTS is made this 2nd day of
October,  1997,  between the UNITED STATES OF AMERICA,  as grantor acting by and
through the Department of Energy, Alaska Power Administration,  whose address is
2770 Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing
this document,  pursuant to the  Reclamation Act of June 17, 1902, 32 Stat. 388,
as amended,  the  Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  the
Energy  Organization  Act of August 4, 1977, 91 Stat.  565, as amended,  and the
Alaska Power  Administration  Asset Sale and Termination  Act, 109 Stat. 557, as
amended, herein referred to as UNITED STATES, and the Municipality of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc.,  and the Matanuska  Electric  Association,  Inc.,  GRANTEES,  collectively
referred to herein as EKLUTNA PURCHASERS,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna Hydroelectric Project ("Eklutna Project") and the Eklutna Project 115-kv
Transmission Line as a part thereof,  under the authority of the Eklutna Project
Act of 1950, 64 Stat.  382, as amended,  (I) to encourage  and promote  economic
development; (ii) to foster the establishment of essential industries; and (iii)
to further the self- sufficiency of national defense.

         WHEREAS,  through the construction and operation of the Eklutna Project
115-kv  Transmission Line the UNITED STATES appropriated and reserved the rights
to construct, operate, and maintain the transmission line and appurtenant access
routes  across and through the lands  which were,  at the time of  construction,
federal lands. The UNITED STATES subsequently  conveyed certain of such lands to
Eklutna,  Inc.  pursuant to the Alaska Native Claims  Settlement Act of December
18, 1971 as amended,







43 U.S.C. ss. 1601 et seq.  ("ANCSA"),  subject to valid existing rights.  These
valid existing rights include the rights transferred herein.

         WHEREAS,  the UNITED STATES' rights to construct,  operate and maintain
the Eklutna  Project  115-kv  transmission  line and  appurtenant  access routes
across the  subject  lands were  reserved  and  excepted as  easements  from the
conveyance to Eklutna,  Inc.,  pursuant to Section 17(b) of ANCSA, 43 U.S.C. ss.
1616(b).

         WHEREAS,  at the inception of the Eklutna  Project,  Congress  intended
eventually  to transfer the Eklutna  Project to local public  control in Alaska,
pursuant to the Eklutna Project Act of 1950, 64 Stat. 382, as amended.

         WHEREAS, after transfer to the Eklutna Purchasers,  the Eklutna Project
will  continue  to serve  the  public  purposes  for  which  the  UNITED  STATES
constructed the project.

         WHEREAS,  pursuant to the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, the UNITED  STATES,  acting by and through the
Secretary of Energy,  is authorized  and directed to transfer its facilities and
its use rights to the Section 17(b)  easements to the EKLUTNA  PURCHASERS,  such
easements to continue to be administered  by the Department of Interior,  Bureau
of Land Management in accordance with their terms.

         NOW THEREFORE,  the UNITED STATES,  for mutual  benefits and other good
and valuable  consideration,  hereby assigns,  transfers,  and sets over without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein, all right,  title, and interest in and to all easement use rights of the
Alaska Power Administration which use reserved to the UNITED STATES, pursuant to
Section  17(b) of  ANCSA,  to  construct,  operate,  and  maintain  an  electric
transmission line, and associated facilities within a 75 foot wide right-of-way,
including  the rights  necessary  to operate and  maintain guy wires and anchors
that







extend beyond 37.5 feet from the  transmission  line  centerline,  together with
associated access routes, across the following described lands:
Township 14 North, Range 2 West, Seward Meridian, Alaska
Section 2: Lot 2.
(BLM EIN 56 C4, Patent No. 50-79-0657)

Township  15 North,  Range 2 West,  Seward  Meridian,  Alaska  Tract 40  (within
Sections 35 and 36).
(BLM EIN 56 C4, Patent No. 50-93-0601)

(Township) 15 North. Range 1 West, Seward Meridian, Alaska
Section 19: E1/2SW1/4.
(BLM EIN 56 C4, Patent No. 50-93-0601)

Township 16 North, Range 1 West, Seward Meridian, Alaska
Section 34: SE1/4, SW1/4, NE1/4;
(BLM EIN 56 C4, Patent No. 50-93-0601)

Section 26: Lot 11, S1/2SE1/4;
(BLM EIN 56 C4, Patent No. 50-93-0601)

Section 25: SW1/4.
(BLM EIN 56 C4, Patent No. 50-93-0601)

Township 16 North, Range 1 East, Seward Meridian, Alas-ka
Section 30: N1/2NE1/4;
(BLM EIN 56 C4 and EIN 66 C8, Patent No. 50-86-0356)
Section 19:  W1/2SW1/4SE1/4,  SE1/4W1/4SE1/4,  SW1/4SE1/4SE1/4,  E1/2SE1/4SE1/4,
SE1/4NE1/4SE1/4;  (BLM EIN 56 C4,  EIN 56a C4,  EIN 56b C4, EIN 66 C8 and EIN 67
C8, Patent No. 50-86-0356)

Section 19: SW1/4NE1/4SE1/4,  SE1/4NW1/4SE1/4, NE1/4SW1/4SE1/4, NW1/4SE1/4SE1/4;
(BLM  EIN 56 C4,  EIN 56a  C4,  EIN  56b  C4,  EIN 66 C8 and EIN 67 C8,  Interim
Conveyance No. 1211)

Section 20: S1/2;
(BLM EIN 56 C4 and EIN 66 C8, Patent No. 50-93-0563)
Section 20: S1/2NE1/4;
(BLM EIN 56 C4 and EIN 66 C8, Interim Conveyance No. 1512)
Section 21: S1/2E1/4;
(BLM EIN 56 C4 and EIN 66 C8, Patent No. 50-93-0563)
Section 21: NW1/4, N1/2NE1/4;
(BLM EIN 56 C4 and EIN 66 C8, Interim Conveyance No. 1512)







Section 22: NE1/4, NE1/4NW1/4;
(BLM EIN 56 C4 and EIN 66 CB, Patent No. 50-93-0563)
Section 22: NW1/4NW1/4;
(BLM EIN 56 C4 and EIN 66 CB, Interim Conveyance No. 1512)
Section 23: N1/2
(BLM EIN 56 C4 and EIN 66 CB, Patent No. 50-93-0563)
Section 24: N1/2;
(BLM EIN 56 C4 and EIN 66 CB, Patent No. 50-93-0563)
Section 13: S1/2S1/2.
(BLM EIN 56 C4 and EIN 66 CB, Patent No. 50-93-0601)
Township 16 North, Range 2 East, Seward Meridian, Alaska
Section 18: Lot 16;
(BLM EIN 56 C4 and EIN 66 CB, Patent No. 50-93-0601)
Section 17: NW1/4, E1/2NW1/4SW1/4, E1/2SW1/4.
(BLM EIN 64 C4, Patent No. 50-86-0636)

Together with the transmission line and associated facilities.
The right,  title,  and interest in and to all easement use rights of the Alaska
Power  Administration,  which use was reserved to the UNITED STATES  pursuant to
Section 17(b) of ANCSA, is hereby granted to the EKLUTNA PURCHASERS and vests in
the EKLUTNA  PURCHASERS as tenants in common to the full extent of the undivided
interests set forth below:

Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30







The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF EASEMENT USE
RIGHTS.

IN WITNESS  WHEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
EASEMENT USE RIGHTS as of the day and year first written above.

Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager





 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager








Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000





Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
ASSIGNMENT  AND  TRANSFER OF EASEMENT USE RIGHTS  Eklutna Lake to Eklutna  Power
Plant Aqueduct

This  ASSIGNMENT  AND  TRANSFER OF  EASEMENT  USE RIGHTS is made this 2nd day of
October,  1997,  between the UNITED STATES OF AMERICA,  as grantor acting by and
through the Department of Energy, Alaska Power Administration,  whose address is
2770 Sherwood Lane, Juneau, AK 99801-8545,  represented by the officer executing
this document,  pursuant to the  Reclamation Act of June 17, 1902, 32 Stat. 388,
as amended,  the  Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  the
Energy  Organization  Act of August 4, 1977, 91 Stat.  565, as amended,  and the
Alaska Power  Administration  Asset Sale and Termination  Act, 109 Stat. 557, as
amended, herein referred to as UNITED STATES, and the Municipality of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc.,  and the Matanuska  Electric  Association,  Inc.,  GRANTEES,  collectively
referred to herein as EKLUTNA PURCHASERS,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna  Hydroelectric  Project  ("Eklutna  Project")  and the  Eklutna  Lake to
Eklutna  Power Plant  Aqueduct as a part  thereof,  under the  authority  of the
Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  (I) to encourage  and
promote  economic  development;  (ii) to foster the  establishment  of essential
industries; and (iii) to further the self- sufficiency of national defense.

         WHEREAS,  through the construction and operation of the Eklutna Lake to
Eklutna  Power Plant  Aqueduct the UNITED STATES  appropriated  and reserved the
rights to construct,  operate,  and maintain the tunnel aqueduct and appurtenant
access routes across and through lands which were, at the time of  construction,
withdrawn  from  entry or  disposition  under the public  land laws.  The UNITED
STATES subsequently  conveyed certain of such lands to Eklutna, Inc. pursuant to
the Alaska  Native  Claims  Settlement  Act of December 18, 1971 as amended,  43
U.S.C. ss. 1601






et seq. ("ANCSA"), subject to valid existing rights. These valid existing rights
include the rights transferred herein.

         WHEREAS,  the UNITED STATES' rights to construct,  operate and maintain
the tunnel aqueduct and appurtenant  access routes across the subject lands were
reserved and excepted as easements from the conveyance to Eklutna,  Inc., as 100
foot wide easements pursuant to Section 17(b) of ANCSA, 43 U.S.C. ss. 1616(b).

         WHEREAS,  at the inception of the Eklutna  Project,  Congress  intended
eventually  to transfer the Eklutna  Project to local public  control in Alaska,
pursuant to the Eklutna Project Act of 1950, 64 Stat. 382, as amended.

         WHEREAS, after transfer to the Eklutna Purchasers,  the Eklutna Project
will  continue  to serve  the  public  purposes  for  which  the  UNITED  STATES
constructed the project.

         WHEREAS,  pursuant to the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, the UNITED  STATES,  acting by and through the
Secretary of Energy,  is authorized  and directed to transfer its facilities and
its use rights to the Section 17(b)  easements to the EKLUTNA  PURCHASERS,  such
easements to continue to be administered  by the Department of Interior,  Bureau
of Land Management in accordance with their terms.

         NOW THEREFORE,  the UNITED STATES,  for mutual  benefits and other good
and valuable  consideration,  hereby assigns,  transfers,  and sets over without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein, all right,  title, and interest in and to all easement use rights of the
Alaska Power Administration which use reserved to the UNITED STATES, pursuant to
Section 17(b) of ANCSA, to construct,  operate,  and maintain an aqueduct tunnel
and associated







facilities within a 100 foot wide right-of-way,  together with associated access
routes, across the following described lands:
Township 6 North, Range 2 East, Seward Meridian, Alaska
Section 20: W1/2.
(BLM EIN 65 C4, patent No. 50-86-0636)

Township 15 North, Range 2 East, Seward Meridian, Alaska
Section 5: Lot 2; S1/2N1/2, S1/2.
(BLM EIN 65 C4, patent No. 50-86-0636)

Section 8: Lot 12; NW1/4NW1/4.
(BLM EIN 65 C4, patent No. 50-86-0636)

Together with the aqueduct tunnel and associated facilities.

The right,  title,  and interest in and to all easement use rights of the Alaska
Power  Administration,  which use was reserved to the UNITED STATES  pursuant to
Section 17(b) of ANCSA, is hereby granted to the EKLUTNA PURCHASERS and vests in
the EKLUTNA  PURCHASERS as tenants in common to the full extent of the undivided
interests set forth below: Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

The EKLUTNA PURCHASERS hereby accept the ASSIGNMENT AND TRANSFER OF EASEMENT USE
RIGHTS.







IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
EASEMENT USE RIGHTS as of the day and year first written above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager












 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
ASSIGNMENT AND TRANSFER
OF FLOWAGE, FLOODING, AND RESERVOIR EASEMENT
EKLUTNA HYDROELECTRIC PROJECT
EKLUTNA LAKE, ALASKA

This ASSIGNMENT AND TRANSFER OF FLOWAGE, FLOODING AND RESERVOIR EASEMENT is made
this 2nd day of October,  1997, between the UNITED STATES OF AMERICA, as grantor
acting by and through the  Department  of Energy,  Alaska Power  Administration,
whose address is 2770 Sherwood Lane,  Juneau, AK 99801-8545,  represented by the
officer  executing this document,  pursuant to the  Reclamation  Act of June 17,
1902, 32 Stat.  388, as amended,  the Eklutna Project Act of 1950, 64 Stat. 382,
as amended,  the Energy  Organization  Act of August 4, 1977, 911 Stat.  565, as
amended, and the Alaska Power Administration Asset Sale and Termination Act, 109
Stat. 557, as amended, herein referred to as UNITED STATES, and the Municipality
of Anchorage,  doing business as Municipal Light and Power, the Chugach Electric
Association,  Inc.,  and the Matanuska  Electric  Association,  Inc.,  GRANTEES,
collectively referred to herein as EKLUTNA PURCHASERS, whose address is, Eklutna
Project, HC 04, Box 7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna Hydroelectric Project ("Eklutna Project") and the Eklutna Project 115-kv
Transmission Line as a part thereof,  under the authority of the Eklutna Project
Act of 1950, 64 Stat.  382, as amended,  (I) to encourage  and promote  economic
development; (ii) to foster the establishment of essential industries; and (iii)
to further the self- sufficiency of national defense.

         WHEREAS,  the UNITED STATES reserved public lands and waters sufficient
to support the Eklutna Project, specifically the Eklutna Project Act of 1950, 64
Stat.  382,  as  amended,  Public  Land Order (PLO) 4022 dated May 20, 1966 (for
lands and waters in and adjacent to Eklutna  Lake) and Section 24 of the Federal
Power Act (FPA) of June 10, 1928, 41







Stat. 1075, providing for the rights to operate and maintain a flowage, flooding
and  reservoir  easement.  Portions of the lands upland of the Eklutna Lake mean
high water mark have subsequently been conveyed by the UNITED STATES to Eklutna,
Inc.,  pursuant to the Alaska Native Claims Settlement Act of December 18, 1971,
as amended,  43 U.S.C. ss. 1601 et seq.,  subject to valid existing rights.  The
UNITED STATES has prior existing valid rights to the existing flowage,  flooding
and reservoir  easement to ensure the safe  operation of the Eklutna  Project as
provided in the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  PLO 4022
and Section 24 of the FPA.

         WHEREAS,  at the inception of the Eklutna  Project,  Congress  intended
eventually  to transfer the Eklutna  Project to local public  control in Alaska,
pursuant to the Eklutna Project Act of 1950, 64 Stat. 382, as amended.

         WHEREAS, after transfer to the Eklutna Purchasers,  the Eklutna Project
will  continue  to serve  the  public  purposes  for  which  the  UNITED  STATES
constructed the project.

         WHEREAS,  pursuant to the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, the UNITED  STATES,  acting by and through the
Secretary of Energy,  is authorized  and directed to transfer its facilities and
its real property interests to the EKLUTNA PURCHASERS.

NOW  THEREFORE,  the  UNITED  STATES,  for  mutual  benefits  and other good and
valuable  considerations,  hereby  assigns,  transfers,  and sets  over  without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,  all right,  title,  and  interest  of the UNITED  STATES in an existing
flowage,  flooding and reservoir easement.  The flowage and flooding easement is
within the following described lands:

T. 15 N., R. 2 E., Seward Meridian, Alaska

Section  8:  Portion  of Lots 1, 2, 4, 5, 6, 7, 8, 9, 10,  11,  and 13.  (Patent
50-86-0636; and PLO 589 and 4022)







Section 9: Portion of Lots 1 through 6, inclusive.  (Patent 50-86-0636;  Interim
Conveyance 1573) 
Section 10: Portion of Lots 1, and 2; (Interim Conveyance 1573)
Section 14: Portion of Lots 1, and 2; (Interim Conveyance 1573)  
Section 15: Portion of Lots 1, 2, and 3; (Interim Conveyance 1573) 
Section 16: Portion of Lots 1, and 2; (Interim Conveyance 1573) 
Section 22: Portion of Lots 1, and 2; (Interim Conveyance 1573)  
Section 23: Portion of Lots 1, 2, and 3; (Interim Conveyance 1573) 
Section 24: Portion of Lots 1, and 2; (Interim Conveyance 1573)
Section 25: Portion of Lots 1, 2, 3, and 4; (Interim Conveyance 1573) 
Section 26: Portion of Lots 1, 2, and 3; (Interim Conveyance 1573) 
Section 36: Portion of Lots 1, 2, 3, and 4;  (Interim Conveyance 1573) 

T. 15 N.,  R. 3 E.,  Seward Meridian, Alaska

Section 30: Portion of Lots 1, and 2; (Patent 50-93-0565)
Section 31: Portion of Lots 1, and 2; (Patent 50-93-0565)

T. 14 N., R. 2 E., Seward Meridian. Alaska

Section 1: Portion of N1/2N1/2NE1/4; (Patent 50-93-0565)
Comprising 391.60 acres, more or less.

The reservoir easement is comprised of and underlies that body of water known as
Eklutna Lake.

The right,  title,  and  interest  of the UNITED  STATES  hereby  granted to the
EKLUTNA  PURCHASERS vests in the EKLUTNA  PURCHASERS as tenants in common to the
full  extent  of the  undivided  interests  set  forth  below:  Municipality  of
Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

The EKLUTNA  PURCHASERS  hereby accept the  ASSIGNMENT  AND TRANSFER OF FLOWAGE,
FLOODING AND RESERVOIR EASEMENT.








IN WITNESS  WHEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
FLOWAGE,  FLOODING AND  RESERVOIR  EASEMENT as of the day and year first written
above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager












Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000






Duplicate Original

UNITED STATES OF
AMERICA DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF POWER PROJECT FACILITIES
Eklutna Project


This ASSIGNMENT AND TRANSFER OF POWER PROJECT FACILITIES is made this 2nd day of
October,  1997,  between the UNITED STATES OF AMERICA,  as grantor acting by and
through the Department of Energy, Alaska Power Administration,  whose address is
2770 Sherwood Lane, Juneau, AK 99801- 8545, represented by the officer executing
this document,  pursuant to the  Reclamation Act of June 17, 1902, 32 Stat. 388,
as amended,  the  Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  the
Energy  Organization  Act of August 4, 1977, 91 Stat.  565, as amended,  and the
Alaska Power  Administration  Asset Sale and Termination  Act, 109 Stat. 557, as
amended, herein referred to as UNITED STATES, and the Municipality of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc.,  and the Matanuska  Electric  Association,  Inc.,  GRANTEES,  collectively
referred to herein as EKLUTNA PURCHASERS,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.

         WHEREAS, the UNITED STATES has constructed, operated and maintained the
Eklutna Hydroelectric Project ("Eklutna Project") and the Eklutna Project 115-kv
Transmission Line as a part thereof,  under the authority of the Eklutna Project
Act of 1950, 64 Stat.  382, as amended,  (I) to encourage  and promote  economic
development; (ii) to foster the establishment of essential industries; and (iii)
to further the self- sufficiency of national defense.

         WHEREAS,  on September 15, 1997, the Bureau of Land  Management  issued
Right-of-Way Grant,  Serial Number AA-70133,  to the UNITED STATES to construct,
operate,  maintain and terminate a  right-of-way  for the Eklutna  Hydroelectric
Power Project,  including:  Eklutna Dam and spillway, Eklutna Lake intake; power
facilities above and underground between Eklutna Lake and the Old Glenn Highway:
power tunnel, gate valve, adit, and surge tank;  facilities located near the Old
Glenn Highway;







administrative,  maintenance,  and support  facilities,  power house,  tailrace,
storage yard, warehouse, garage, and parking area; overhead 115KV electric power
transmission lines to Anchorage and Palmer,  including guy wires,  anchors,  tap
switches, and other power facilities associated with the transmission lines; and
related access roads across lands under the administration of the Bureau of Land
Management.

         WHEREAS,  it is the intent of the UNITED  STATES to assign and transfer
all power  facilities and equipment  across the lands  described in Right-of-Way
Grant, Serial Number AA-70133 to the EKLUTNA PURCHASERS.

         NOW THEREFORE,  the UNITED STATES,  for mutual  benefits and other good
and valuable  consideration,  hereby assigns,  transfers,  and sets over without
reservation to the EKLUTNA PURCHASERS,  their successors and assigns, as tenants
in common according to their fractional interests as more particularly set forth
herein,.  all right,  title,  and interest in the power facilities and equipment
across the lands described in Right-of-Way Grant,  Serial Number AA-70133.  Said
lands are also described in Exhibit A, attached hereto and made a part hereof.

The right,  title,  and interest in and to power facilities and equipment of the
Alaska Power  Administration  is hereby  granted to the EKLUTNA  PURCHASERS  and
vests in the EKLUTNA  PURCHASERS  as tenants in common to the full extent of the
undivided interests set forth below:

Municipality of Anchorage, d/b/a
Municipal Light and Power                                     16/30
Chugach Electric Association, Inc.                             9/30
Matanuska Electric Association, Inc.                           5/30







The  EKLUTNA  PURCHASERS  hereby  accept the  ASSIGNMENT  AND  TRANSFER OF POWER
PROJECT FACILITIES.

IN WITNESS  WHEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
POWER PROJECT FACILITIES as of the day and year first written above.



Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager





 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager







Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney






ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000



CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by George J. Vakalis,  the Acting Municipal Manager of the Municipality of
Anchorage,  doing  business  as  Municipal  Light and  Power,  on behalf of said
municipal corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000


CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Eugene  N.  Bjornstad,  the  General  Manager  of  Chugach  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000







CORPORATE ACKNOWLEDGMENT

State of Alaska                             )
                                            ) ss.
Third Judicial District                              )

 The foregoing  instrument was  acknowledged  before me this 2nd day of October,
 1997,  by  Wayne  D.  Carmony,   the  General  Manager  of  Matanuska  Electric
 Association, Inc., on behalf of said corporation.

                                  /s/ Lee Anne Mackay
                                  Notary Public
(SEAL)                            My Commission expires: 5/25/2000







                                    EXHIBIT A
Legal Description for Right-of-Way AA-70133
The Eklutna  transmission lines and access road are shown on the as-built survey
of the  Eklutna  Transmission  Line,  Alaska  Power  Administration  Drawing No.
783-908-449,  certified by Mark E. Davis on November  14,  1996.  This survey is
referred to below as "the  as-built  survey".  Distances and acreage shown below
are approximate and are based on estimated  distances within each section on the
as-built  survey.  The centerline of the  right-of-way  follows the transmission
line. It is 75 feet wide except for guy wires and anchors at  transmission  line
angle points that extend beyond 37.5 feet from the  centerline  and 30 foot wide
access roads that extend beyond 37.5 feet from the  centerline.  The power plant
and dam sites are not linear.

Seward Meridian, Alaska

T. 15 N., R. 2 E.. (surveyed)
Sec. 7, E1/2SE1/4NE1/4, E1/2NE1/4SE1/4 (40 acres);
Sec. 8, Lot 1 (31.91 acres);
Lot 2 (32.47 acres);
Lot 4 (39.79 acres);
Lot 5 (14.99 acres);
Lot 7 (10.92 acres);
Lot 8 (39.99 acres);
Lot 13 (19.99 acres);

Containing approximately 230.06 acres.

T. 16 N., R. 2 E.. (surveyed)
Sec. 11, Lot 1. that  portion  occupied by 1,200 feet of the  transmission  line
within the NW  1/4NE1/4,  NE1/4NW1/4  as shown on sheet 15 of 36 of the as-built
survey  (containing  approximately  2.80  acres);  
Sec. 16, Lot 1, that portion within State Selection  Community Grant Application
AA-56321  occupied  by 1,750  feet of the  transmission  line and 1,750  feet of
access  road  as  shown  on  sheets  14  and  15 of 36 of  the  as-built  survey
(containing approximately 4.20 acres);
Sec.  17,  W1/2W1/2SW1/4,  E1/2SW1/4SW1/4  (60.0  acres);  
Sec.  18,  Lot 9 (3.09  acres);  Lot 11 (36.47  acres);  Lot 18  (19.46  acres);
SE1/4SW1/4, NE1/4SE1/4, S1/2SE1/4 (160.0 acres);
Sec.   19,  Lot   3.(7.70   acres);   W1/2NW1/4NE1/4NE1/4NE1/4   (1.25   acres);
N1/2NW1/4NE1/4NE1/4(5.0 acres); N1/2S1/2NW1/4NE1/4NE1/4 (2.5 acres);

                                       1




E1/2NE1/4NE1/4NW1/4NE1/4 (1.25 acres); N1/2NW1/4NW1/4NE1/4 (5.0 acres);
Sec. 29. E1/2NW1/4 (80.0 acres); E1/2E1/2SW1/4.  (40.0 acres); E1/2W1/2E1/2SW1/4
(20.0 acres); W1/2W1/2W1/2SE1/4(20.0 acres);
Sec. 32, W1/2,W1/2NE1/4 (40.0 acres); E1/2E1/2NW1/4 (40.0 acres); W1/2SE1/4(80.0
acres).

Containing approximately 628.72 acres.

T. 13 N., R. 2 W., (partially surveyed)
Sec. 4,  NW1/4NW1/4NW1/4,  those portions  occupied by 350 feet of  transmission
line and 100  feet of  access  road as  shown  on sheet 5 of 36 of the  as-built
survey (containing  approximately 0.67 acre); 
Sec. 5, those  portions  occupied by 6,850 feet of  transmission  line and 6,100
feet of access road as shown on sheet 5 of 36 of the as-built survey (containing
approximately 15.99 acres);
Sec. 7, those portions  occupied by 6,300 feet of transmission line and 500 feet
of  access  road  as  shown  on  sheets  4 and 5 of 36 of  the  as-built  survey
(containing approximately 11.22 acres);
Sec. 8,  NW1/4NW1/4NW1/4,  those portions  occupied by 850 feet of  transmission
line and 200  feet of  access  road as  shown  on sheet 5 of 36 of the  as-built
survey (containing approximately 1.60 acres);
Sec. 18, those portions occupied by 5,300 feet of transmission line and 750 feet
of  access  road as shown on sheet 4 of 36 of the  as-built  survey  (containing
approximately 9.65 acres);
Sec.  19  (unsurveyed  section),  those  portions  occupied  by  5,700  feet  of
transmission line and 1,500 feet of access road as shown on sheet 4 of 36 of the
as-built survey (containing approximately 10.59 acres);
Sec. 30 (unsurveyed section), N1/2N1/2N1/2NW1/4,  those portions occupied by 300
feet of transmission line as shown on sheet 4 of 36 of the as-built survey,  the
width  is 37.5  feet as the  transmission  line  runs  along  the  section  line
(containing approximately 0.26 acres).

The area described contains approximately 49.98 acres.

T. 14 N., R. 2 W., (partially surveyed) 

Sec. 2, those portions occupied by 4,950 feet of
transmission line and 4,350 feet of access road as shown on sheets 7 and 8 of 36
of the as-built survey (containing approximately 11.52 acres);

                                       2




Sec. 10, those portions  occupied by 3,850 feet of  transmission  line and 2,375
feet of access road as shown on sheet 7 of 36 of the as-built survey (containing
approximately  8.26 acres);  
Sec. 11. those portions occupied by 1,800 feet of transmission line and 100 feet
of  access  road as shown on sheet 7 of 36 of the  as-built  survey  (containing
approximately 3.17 acres);
Sec. 15, those portions  occupied by 5,650 feet of  transmission  line and 1,100
feet of  access  road as shown on  sheets 6 and 7 of 36 of the  as-built  survey
(containing approximately 10.49 acres);
Sec. 21, those portions  occupied by 2,200 feet of transmission  line and 1,000,
feet of access road as shown on sheet 6 of 36 of the as-built survey (containing
approximately 4.48 acres);
Sec. 22,) those portions  occupied by 3,550 feet of transmission  line and 3,100
feet of access road as shown on sheet 6 of 36 of the as-built survey (containing
approximately 8.24 acres);
Sec. 28, those portions  occupied by 5,800 feet of  transmission  line and 4,150
feet  of  access  roads  as  shown  on  sheet  6 of 36 of  the  as-built  survey
(containing approximately 12.85 acres).
Sec. 33, those portions  occupied by 6,700 feet of  transmission  line and 6,200
feet of  access  road as shown on  sheets 5 and 6 of 36 of the  as-built  survey
(containing approximately 15.81 acres.

The area described contains approximately 74.82 acres.

For all townships the total is approximately 983.58 acres. 

                                       3





Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
ASSIGNMENT AND TRANSFER OF CONTRACT NO. 85-80AP10022.000

This ASSIGNMENT AND TRANSFER OF CONTRACT NO.  85-80AP10022.000  is made this 2nd
day of October,  1997,  between  the UNITED  STATES OF  )AMERICA,  acting by and
through the Department of Energy, Alaska Power Administration,  whose address is
2770 Sherwood Lane, Juneau, AK 99801- 8545, represented by the officer executing
this document,  pursuant to the Reclamation Act of June 17,, 1902, 32 Stat. 388,
as amended,  the  Eklutna  Project Act of 1950,  64 Stat.  382, as amended,  the
Energy  Organization  Act of August 4, 1977, 91 Stat.  565, as amended,  and the
Alaska Power  Administration  Asset Sale and Termination  Act, 109 Stat. 557, as
amended, herein referred to as UNITED STATES, and the Municipality of Anchorage,
doing business as Municipal Light and Power, the Chugach  Electric  Association,
Inc., and the Matanuska Electric  Association,  Inc.,  collectively  referred to
herein as EKLUTNA  PURCHASERS,  whose address is,  Eklutna  Project,  HC 04, Box
7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable consideration,  hereby assigns and transfers to the EKLUTNA PURCHASERS,
their  successors or assigns,  all right,  interest,  duty and obligation of the
UNITED STATES, in connection with the CONTRACT NO. 85- 80AP10022.000.

The EKLUTNA  PURCHASERS hereby accept all right,  interest,  duty and obligation
associated with CONTRACT No. 85-80AP10022.000.






IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
CONTRACT NO. 85-80AP10022.000 as of the day and year first written above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager


The  undersigned  hereby concur in the  ASSIGNMENT  AND TRANSFER OF CONTRACT NO.
85-AP10022.000:

Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager










Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney







Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF RIGHT-OF-WAY LICENSES

This ASSIGNMENT AND TRANSFER OF LICENSES is made this 2nd day of October,  1997,
between the UNITED  STATES OF AMERICA,  acting by and through the  Department of
Energy,  Alaska  Power  Administration,  whose  address is 2770  Sherwood  Lane,
Juneau,  AK  99801-8545,  represented  by the officer  executing  this document,
pursuant to the Reclamation Act of June 17, 1902, 32 Stat. 388, as amended,  the
Eklutna Project Act of 1950, 64 Stat. 382, as amended,  the Energy  Organization
Act of  August  4,  1977,  91  Stat.  565,  as  amended,  and the  Alaska  Power
Administration Asset Sale and Termination Act, 109 Stat. 557, as amended, herein
referred to as UNITED STATES, and the Municipality of Anchorage,  doing business
as Municipal Light and Power,  the Chugach Electric  Association,  Inc., and the
Matanuska Electric Association, Inc., collectively referred to herein as EKLUTNA
PURCHASERS,  whose address is,  Eklutna  Project,  HC 04, Box 7785,  Palmer,  AK
99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable consideration,  hereby assigns and transfers to the EKLUTNA PURCHASERS,
their  successors or assigns,  all right,  interest,  duty and obligation of the
UNITED STATES, in connection with the Right-of-Way Licenses listed in Exhibit A,
attached hereto and made a part hereof.

The EKLUTNA  PURCHASERS hereby accept all right,  interest,  duty and obligation
associated with the Right-of-Way Licenses referred to in Exhibit A.







IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
RIGHT-OF-WAY LICENSES as of the day and year first written above.

Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager







 Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney





                                    EXHIBIT A



LICENSE NUMBER               NAME                                PURPOSE
EK-ROW-95-01                 MOA/AWWU                   Water main crossing APA
                                                        Transmission line near
                                                        Structure No. 30/1

EK-ROW-95-02                 Enstar                     Gas line within APA ROW 
                                                        along Northern Lights 
                                                        Blvd.
 
EK-ROW-95-03                 MOA/ATU                    Telephone lines within 
                                                        APA ROW Along Northern 
                                                        Lights Blvd.

EK-ROW-96-01                 City of Palmer             Pedestrian walkway, 
                                                        Palmer Substation

EK-ROW-96-02                 MOA/AWWU                   Eklutna Lake Intake and 
                                                        water Project 
                                                        transmission line within
                                                        APA ROW

EK-ROW-96-03                 MOA/AWWU                   Sewer Line within APA 
                                                        ROW along Northern 
                                                        Lights Blvd.

EK-ROW-96-04                 MOA/AWWU                   Water system within APA 
                                                        ROW along Northern 
                                                        Lights Blvd.

EK-ROW-96-06                 Prime  Cable               Telecommunications lines
                                                        within APA ROW Northern 
                                                        Lights Blvd.





Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF

"COOPERATIVE  LAND  MANAGEMENT  AGREEMENT  BETWEEN THE UNITED  STATES OF AMERICA
THROUGH THE ALASKA POWER  ADMINISTRATION  AND THE BUREAU OF LAND  MANAGEMENT AND
THE STATE OF ALASKA THROUGH THE ALASKA DIVISION OF PARKS AND OUTDOOR  RECREATION
FOR THE MANAGEMENT OF CERTAIN LANDS IN THE UPPER EKLUTNA VALLEY"

This ASSIGNMENT AND TRANSFER OF "COOPERATIVE  LAND MANAGEMENT  AGREEMENT BETWEEN
THE UNITED  STATES OF AMERICA  THROUGH THE ALASKA POWER  ADMINISTRATION  AND THE
BUREAU OF LAND MANAGEMENT AND THE STATE OF ALASKA THROUGH THE ALASKA DIVISION OF
PARKS AND OUTDOOR RECREATION FOR THE MANAGEMENT OF CERTAIN LANDS IN THE
UPPER EKLUTNA VALLEY" is made this 2nd day of October,  1997, between the UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is 2770 Sherwood  Lane,  Juneau,  AK  99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination Act, 109 Stat. 557, as amended, herein referred to as UNITED STATES,
and the Municipality of Anchorage,  doing business as Municipal Light and Power,
the Chugach Electric Association,  Inc., And the Matanuska Electric Association,
Inc.,  collectively referred to herein as EKLUTNA PURCHASERS,  whose address is,
Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable consideration,  hereby assigns and transfers to the EKLUTNA PURCHASERS,
their successors or assigns,  all right,  interest,  duty, and obligation of the
UNITED STATES, Alaska Power Administration,  in connection with the "Cooperative
Land  Management  Agreement  Between  The United  States of America  through The
Alaska Power  Administration  and The Bureau of Land Management and The State of
Alaska  through  The Alaska  Division of Parks and  Outdoor  Recreation  for The
Management of Certain Lands in the Upper Eklutna Valley."








The EKLUTNA  PURCHASERS hereby accept all right,  interest,  duty and obligation
associated with the "COOPERATIVE  LAND MANAGEMENT  AGREEMENT  BETWEEN THE UNITED
STATES OF AMERICA THROUGH THE ALASKA POWER ADMINISTRATION AND THE BUREAU OF LAND
MANAGEMENT  AND THE STATE OF ALASKA  THROUGH  THE ALASKA  DIVISION  OF PARKS AND
OUTDOOR  RECREATION  FOR THE  MANAGEMENT  OF CERTAIN  LANDS IN THE UPPER EKLUTNA
VALLEY".

IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
"COOPERATIVE  LAND  MANAGEMENT  AGREEMENT  BETWEEN THE UNITED  STATES OF AMERICA
THROUGH THE ALASKA POWER  ADMINISTRATION  AND THE BUREAU OF LAND  MANAGEMENT AND
THE STATE OF ALASKA THROUGH THE ALASKA DIVISION OF PARKS AND OUTDOOR  RECREATION
FOR THE  MANAGEMENT OF CERTAIN LANDS IN THE UPPER EKLUTNA  VALLEY" as of the day
and year first written above.

Acceptance:                                          United States of America
Municipality of Anch                                 Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager











The  undersigned  hereby concur in the ASSIGNMENT  AND TRANSFER OF  "COOPERATIVE
LAND  MANAGEMENT  AGREEMENT  BETWEEN  THE UNITED  STATES OF AMERICA  THROUGH THE
ALASKA POWER  ADMINISTRATION  AND THE BUREAU OF LAND MANAGEMENT AND THE STATE OF
ALASKA  THROUGH  THE ALASKA  DIVISION OF PARKS AND  OUTDOOR  RECREATION  FOR THE
MANAGEMENT Or CERTAIN LANDS IN THE UPPER EKLUTNA VALLEY":

The Bureau of Land Management
U.S. Department of Interior



 /s/ Nick Douglas
 Name:

 District Manager
 Title:



 State of Alaska
 Division of Parks and Outdoor Recreation
 Alaska Department of Natural Resources



 /s/ Jim Statton
 Name

 Director
 Title:







Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney





Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF
AGREEMENT FOR PUBLIC WATER SUPPLY AND ENERGY GENERATION FROM
EKLUTNA LAKE, ALASKA, AS SUPPLEMENTED

This ASSIGNMENT AND TRANSFER OF AGREEMENT FOR PUBLIC WATER SUPPLY
AND ENERGY GENERATION FROM EKLUTNA LAKE, ALASKA, AS SUPPLEMENTED
is made this 2nd day of October,  1997,  between  the UNITED  STATES OF AMERICA,
acting by and through the  Department  of Energy,  Alaska Power  Administration,
whose address is 2770 Sherwood Lane,  Juneau, AK 99801-8545,  represented by the
officer  executing this document,  pursuant to the  Reclamation  Act of June 17,
1902, 32 Stat.  388, as amended,  the Eklutna Project Act of 1950, 64 Stat. 382,
as amended,  the Energy  Organization  Act of August 4, 1977,  91 Stat.  565, as
amended, and the Alaska Power Administration Asset Sale and Termination Act, 109
Stat. 557, as amended, herein referred to as UNITED STATES, and the Municipality
of Anchorage,  doing business as Municipal Light and Power, the Chugach Electric
Association,  Inc., and the Matanuska Electric Association,  Inc.,  collectively
referred to herein as EKLUTNA PURCHASERS,  whose address is, Eklutna Project, HC
04, Box 7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable consideration,  hereby assigns and transfers to the EKLUTNA PURCHASERS,
their  successors or assigns,  all right,  interest,  duty and obligation of the
UNITED  STATES,  in  connection  with the  AGREEMENT FOR PUBLIC WATER SUPPLY AND
ENERGY GENERATION FROM EKLUTNA LAKE, ALASKA, AS SUPPLEMENTED.

The EKLUTNA  PURCHASERS hereby accept all right,  interest,  duty and obligation
associated  with  AGREEMENT FOR PUBLIC WATER SUPPLY AND ENERGY  GENERATION  FROM
EKLUTNA LAKE, ALASKA, AS SUPPLEMENTED.






IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
AGREEMENT  FOR PUBLIC WATER  SUPPLY AND ENERGY  GENERATION  FROM  EKLUTNA  LAKE,
ALASKA, AS SUPPLEMENTED as of the day and year first written above.

Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager


The undersigned hereby concur in the ASSIGNMENT AND TRANSFER OF AGREEMENT
FOR PUBLIC WATER SUPPLY AND ENERGY GENERATION FROM EKLUTNA LAKE,
ALASKA, AS SUPPLEMENTED:


MUNICIPALITY OF ANCHORAGE

/s/ George J. Vakalis for
Larry D. Crawford
Municipal Manager









Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney





Duplicate Original

QUITCLAIM DEED
Federal  Reserved  Water Right Under the Eklutna  Project Act of 1950,  64 Stat.
382,  As  Amended,  Including  State  of  Alaska  Water  Rights  Certificate  of
Appropriation (Amended) ADL 44944


This  QUITCLAIM DEED is made this 2nd day of October,  1997,  between the UNITED
STATES OF AMERICA,  acting by and through the Department of Energy, Alaska Power
Administration,  whose address is 2770 Sherwood  Lane,  Juneau,  AK  99801-8545,
represented by the officer executing this document,  pursuant to the Reclamation
Act of June 17, 1902, 32 Stat. 388, as amended, the Eklutna Project Act of 1950,
64 Stat.  382, as amended,  the Energy  Organization  Act of August 4, 1977,  91
Stat.  565,  as  amended,  and the Alaska  Power  Administration  Asset Sale and
Termination  Act, 109 Stat.  557, as amended,  herein  referred to as the UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable   consideration,   hereby   RELEASES  and  QUITCLAIMS  to  the  EKLUTNA
PURCHASERS, their successors or assigns, as tenants in common according to their
fractional  interests as more particularly set forth herein,  all right,  title,
and interest of the UNITED STATES in and to that certain federal  reserved water
right created by the Eklutna Project Act of 1950, 64 Stat. 382, as amended,  and
including State of Alaska Water Rights  Certificate of  Appropriation  (Amended)
ADL 44944,  recorded May 9, 1995, in the official records of Anchorage Recording
District,  Third Judicial District, State of Alaska, in Miscellaneous Book 2784,
pages 690-692.







The  right,  title  and  interest  of the  UNITED  STATES  hereby  released  and
quitclaimed to the EKLUTNA PURCHASERS vests in the EKLUTNA PURCHASERS as tenants
in common to the full extent of the undivided interests set forth below:

Municipality of Anchorage, d/b/a

Municipal Light and Power                            16/30
Chugach Electric Association, Inc.                    9/30
Matanuska Electric Association, Inc.                  5/30

IN WITNESS THEREOF, the UNITED STATES has executed this QUITCLAIM DEED as of the
day and year first written above.


UNITED STATES OF AMERICA
Department of Energy
Alaska Power Administration


 /s/ Rodney L. Adelman
Rodney L. Adelman
Administrator




ACKNOWLEDGMENT

STATE OF ALASKA

Third Judicial District

The foregoing  instrument  was  acknowledged  before me this 2nd day of October,
1997, by Rodney L. Adelman, Administrator,  Alaska Power Administration,  United
States Department of Energy. Witness my hand and official seal.


                                  /s/ Lee Anne Mackay
                                  Notary Public
(Seal)
                                  My Commission expires: 5/25/2000






Duplicate Original
UNITED STATES OF AMERICA
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION

ASSIGNMENT AND TRANSFER OF THE
JUNE 3, 1957, PERMIT LETTER; AND REVOCABLE PERMIT OF USE DATED APRIL 9,
1958; REGARDING THE KNIK RIVER BRIDGE

This ASSIGNMENT AND TRANSFER is made this 2nd day of October,  1997, between the
UNITED STATES OF AMERICA, acting by and through the Department of Energy, Alaska
Power   Administration,   whose  address  is  2770  Sherwood  Lane,  Juneau,  AK
99801-8545,  represented by the officer executing this document, pursuant to the
Reclamation Act of June 17, 1902, 32 Stat. 388, as amended,  the Eklutna Project
Act of 1950, 64 Stat.. 382, as amended, the Energy Organization Act of August 4,
1977, 91 Stat. 565, as amended,  and the Alaska Power  Administration Asset Sale
and  Termination  Act, 109 Stat.  557, as amended,  herein referred to as UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer,.AK 99645.

WITNESSETH,  that the  UNITED  STATES,  for mutual  benefits  and other good and
valuable consideration,  hereby assigns and transfers to the EKLUTNA PURCHASERS,
their successors or assigns, all right, interest, duty, obligation and liability
of the UNITED  STATES,  in connection  with the June 3, 1957,  permit letter and
April 9, 1958 Revocable Permit of Use.

The EKLUTNA PURCHASERS hereby accept all right,  interest,  duty, obligation and
liability  associated  with the June 3,  1957,  permit  letter and April 9, 1958
Revocable Permit of Use.








IN WITNESS  THEREOF,  the parties have executed this  ASSIGNMENT AND TRANSFER OF
THE JUNE 3, 1957,  PERMIT  LETTER;  AND  REVOCABLE  PERMIT OF USE DATED APRIL 9,
1958;  REGARDING  THE KNIK  RIVER  BRIDGE as of the day and year  first  written
above.


Acceptance:                                          United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                            /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Acceptance:
Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Acceptance:
Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager



The  undersigned  hereby  concur in the  ASSIGNMENT  AND TRANSFER OF THE JUNE 3,
1957, PERMIT LETTER; AND REVOCABLE PERMIT OF USE DATED APRIL 9, 1958;  REGARDING
THE KNIK RIVER BRIDGE

State of Alaska
Department of Transportation and Public Facilities


 /s/ William R Strickler
William R. Strickler
Chief, Traffic Safety and Utilities





Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney





Duplicate Original
UNITED STATES
DEPARTMENT OF ENERGY
ALASKA POWER ADMINISTRATION
EKLUTNA PROJECT, ALASKA

ASSIGNMENT OF CONTRACT DE-SC85-95AP10042

This  Contract  ASSIGNMENT  is made this 2nd day of October,  1997,  between the
UNITED STATES OF AMERICA, acting by and through the Department of Energy, Alaska
Power   Administration,   whose  address  is  2770  Sherwood  Lane,  Juneau,  AK
99801-8545,  represented by the officer executing this document, pursuant to the
Reclamation Act of June 17, 1902, 32 Stat. 388, as amended,  the Eklutna Project
Act of 1950, 64 Stat. 382, as amended,  the Energy Organization Act of August 4,
1977, 91 Stat. 565, as amended,  and the Alaska Power  Administration Asset Sale
and  Termination  Act, 109 Stat.  557, as amended,  herein referred to as UNITED
STATES, and the Municipality of Anchorage, doing business as Municipal Light and
Power,  the Chugach  Electric  Association,  Inc.,  and the  Matanuska  Electric
Association,  Inc., collectively referred to herein as EKLUTNA PURCHASERS, whose
address is, Eklutna Project, HC 04, Box 7785, Palmer, AK 99645.

I. Background

The United States owns,  operates and maintains  the Eklutna  Project  including
facilities for the generation and transmission of electric power and energy;

Pursuant to the Alaska Power  Administration Asset Sale and Termination Act, 109
Stat.  557,  the UNITED  STATES  intends to transfer  all of its interest in the
Eklutna Project to the Eklutna Purchasers;

The  United  States  entered  into  Contract  No.   DE-SC85-95AP10042  with  the
Municipality  of Anchorage,  doing  business as Municipal  Light and Power,  the
Chugach Electric Association, Inc., and the Matanuska Electric Association, Inc;








The United  States  desires to assign its rights,  duties and all  interests  or
obligations in Contract No. DE-SC85-95AP10042 to the Eklutna Purchasers;

The  Eklutna  Purchasers  are  willing  to accept the  assignment  of the United
States'  rights,  duties  and all  interests  or  obligations  in  Contract  No.
DE-SC85-95AP10042;

In consideration of the mutual benifits, the parties agree as follows:

II. Assignment of Contract No. DE-SC85-95AP10042

This Contract Assignment shall become effective on the date of execution.

The United States hereby assigns its rights,  duties and all other  interests or
obligations in Contract No. DE-SC85-95AP10042 to the Eklutna Purchasers.

The  Eklutna  Purchasers,  hereby  accept and assume the United  States  rights,
duties and all other interest or obligations in Contract No.  DE-SC85-95AP10042.
The Eklutna Purchasers agree that they shall be subject to all of the provisions
and condition of Contract No. DE- SC85-95AP10042.

The  Municipality  of Anchorage,  doing  business as Municipal  Light and Power,
hereby consents to the assignment of the United States'  rights,  duties and all
other interest or obligations in Contract No. DE-SC85-  95AP10042 to the Eklutna
Purchasers.

The Chugach Electric Association, Inc., hereby consents to the assignment of the
United States' rights,  duties and all other interest or obligations in Contract
No. DE-SC85-95AP10042 to the Eklutna Purchasers.

The Matanuska Electric  Association,  Inc., hereby consents to the assignment of
the United States' rights, duties and all other







interests or obligations in Contract No. DE-SC85-95AP10042 to the

Eklutna Purchasers.

The  Municipality  of Anchorage,  doing  business as Municipal  Light and Power,
hereby  releases the United  States of its duties and all other  obligations  in
Contract No. DE-SC85-95AP10042.

The Chugach Electric Association, Inc., hereby releases the United States of its
duties and all other obligations in Contract No. DE- SC85-95AP10042.

The Matanuska Electric  Association,  Inc., hereby releases the United States of
its duties and all other obligations in Contract No. DE- SC85-95AP10042.

III. Agreement

All parties  agree that this  assignment  shall become  effective on the date of
execution.

PARTIES TO THE ORIGINAL CONTRACT:

                                                     United States of America
Municipality of Anchorage                            Department of Energy
dba Municipal Light and Power                        Alaska Power Administration



 /s/ George J. Vakalis for                             /s/ Rodney L. Adelman
Larry D. Crawford                                    Rodney L. Adelman
Municipal Manager                                    Administrator

Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager

Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager








 EKLUTNA PURCHASERS BY:

 Municipality of Anchorage
 dba Municipal Light and Power


 /s/ George J. Vakalis for
Larry D. Crawford
Municipal Manager


Chugach Electric Association, Inc.


 /s/ Eugene N. Bjornstad
Eugene N. Bjornstad
General Manager


Matanuska Electric Association, Inc.


 /s/ Wayne D. Carmony
Wayne D. Carmony
General Manager







Recommended:
Anchorage Municipal Light & Power


 /s/ Hank Nikkels
Hank Nikkels
Acting General Manager


Recommended:
Municipality of Anchorage


 /s/ George Vakalis
George J. Vakalis
Operations Manager

Approved as to Form:
Municipality of Anchorage



 /s/ Mary K. Hughes
Mary K. Hughes
Municipal Attorney