Alaska’s new Attorney General, Stephen Cox, asked the Regulatory Commission of Alaska today to intervene on behalf of Chugach Electric Association (CEA) ratepayers in the matter of Chugach’s new “Cents of Community” program.
Although fewer than ten percent of Chugach’s members proactively opted into the program, the rollout automatically signed up all 90,000 members and then required members to take additional steps to opt out. Such requirements cannot substitute for positive affirmation, according to the AG.
Cox asked the RCA to force CEA to redesign the program to avoid violations of constitutional rights.
“This is a compelled-subsidy problem,” said Attorney General Cox. “Because Chugach’s members are captive customers, the automatic round-up requires them to fund speech they may not agree with. That raises serious First Amendment concerns. Alaskans should not be put in the position of supporting organizations or advocacy they disagree with just to keep the lights on.”
A press release issued by the Dept. of Law cites the Janus v. AFSCME case as authority supporting the RCA request, which “makes clear that compelled subsidies of private speech are inconsistent with the First Amendment and that opt-out mechanisms do not cure the problem”
One element of the controversial plan is CEA’s yet-to-be disclosed plan on who will manage CEA’s newly formed Charitable Foundation, and how proceeds in the Trust will be distributed. Ratepayers are thus deprived of information to make an informed decision. According to Cox, this could lead to ratepayers subsidizing undisclosed causes they do not support.
“Protecting Alaskans’ First Amendment rights is central here,” AG Cox said. “Voluntary generosity is commendable, but giving should be a matter of choice. Opt-in programs like Anchorage Water and Wastewater Utility’s ‘Coins Can Count’ show that member donations can be encouraged without compromising individual rights.”
Chugach retains the option to re-design the program voluntarily, or to risk RCA action to compel such a move. According to Chief Assistant Attorney General Jeffrey Waller, a lead attorney for the Regulatory Affairs & Public Advocacy Section, RAPA has historically opposed automatic enrollment programs by utilities.
Here is the link to the full filing: https://law.alaska.gov/pdf/press/250910-Comment.pdf
Jon Faulkner is the president of Alaska Gold Communications, the parent company of Must Read Alaska.
I think we should commend our new AG for positive action in early going in his new job!!!
Wouldn’t it be great if now he moved to fix the Grand Jury mess!
As a customer, I saw that in my bill along with a new account number and called customer service. The representatives have a good line ready for those calls and refused to make a change. The exchange of conversation was heated at best. I found the number to dial to opt out and did that as well. I told him, that when I give money to charity, its my choice and on my tax deductions and not a well kept secret sprung on me or anyone else. The company is lacking in business and decision making acuity in every sense and history of Chugach Electric Association.
👍 Do you get the message, Chugach? By the way, 🖕you! (What’s in an icon?)
Nice Mr. Cox. Thank You.
I canceled mine the first night it was put out in public Liz Vazquez had it on her thread that’s how I learned of it I was pretty upset. I then emailed Mike picaro on am650 and he brought it up the next day on his talk radio show that’s local. It upset alot of people but I emailed ch 2,411 news never saw a response
Who will manage CEA’s newly formed Charitable Foundation? I’ll tell you: It will be the same people who are pushing CEA members to buy electric vehicles and other such nonsense.
The amount of mismanagement by Chugach is astounding. Three large rate increases in 9 months and on top of that, the stupidity of introducing their “we have no Sense of the Community” program. Any real company would fire the CEO for their financial situation and poor “sense” of the community.
Recently the Alaska Center of the Environment filed comments in opposition to Chugach’s latest rate increases. They said in writing, “There is cause for concern about Chugach Electric’s use of funds and ability
to manage its finances.”. The Alaska Center owns 71% of the Chugach Board and they are calling out question on their ability to manage their finances!!!!
The Attorney General filed comments today on Chugach’s “no Sense of the Community” program and they put in writing, “ This lack of transparency is especially concerning given the recent public controversy over
Chugach’s board elections and citizen concerns about outside influence in those contests.”
In summary, Chugach is in desperate financial condition, The Alaska Center for the Environment wrote the RCA about concern that Chugach is not able to manage their finances, and the AG wrote the RCA about a lack of transparency over Chugach Board elections and control by outside influence.
The RCA or AG should do whatever it takes to take control of Chugach before we see more mismanagement and corruption.
Thank you Mr. Attorney General.
We know there are plenty of “personnel problems” and other irregularities within the Department of Law and hope you will look into and correct them. Unless it was destroyed by the last attorney general or his staff, you should find a letter from me dated August 24, 2024.
We got the CEA board …and actions….that were to be expected after the recent vote.
Seriously, yet another rate increase and the company has the gall to blame it on a warmer winter than usual. Shame on those companies for making the appliances, heaters, boilers, furnances, etc more energy efficient; and all those building codes that require certain R-Values for insultation, and all the other requirements of the International Energy Conservation Codes. How about explaining why the person in charge, who earns a HUGE salary and benefits, is still employed if the budget is in such dire straights? And are you creating more positions to take care of this Community Program? I’m guessing that director will also have a HUGE budget. Will that require another rate increase request?
Virtuous decision by the Alaska Attorney General.