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!