Chugach Electric customers are charged up over automatic “Round-Up” charges

By
Suzanne Downing
-
66

Chugach Electric Association is facing backlash from members after announcing that its new “Cents of Community” program will automatically round up electric bills to the nearest dollar unless customers take the time and effort to opt out.

The program, set to launch in October, will add an average of 50 cents per month to each account — about $6 per year per member, the association said. With more than 92,000 members, that adds up to over half a million dollars annually. The money will be pooled into a grant fund and distributed to 501(c)(3) charities through a Chugach-appointed board. Chugach Electric Association’s board is dominated by Democrat- and union activists.

What has many members upset is not the amount, but the process. When Chugach first floated the program, it was described as voluntary. Members say they were told it would be opt-in, meaning they could choose to participate. Instead, every member has now been automatically enrolled, and those who don’t want to take part must call a Chugach hotline, provide their account number and service address, and ask to be removed. Normal people don’t have their electric account numbers handy, so this is a burden of time that not all will commit.

Chugach Consumers, a member watchdog group, has been warning against the program since before the vote. The group points out that Chugach already donates money to charities out of ratepayer revenue, and argues the round-up program forces members into giving under the utility’s terms. “This bylaw is further inducing members to donate their own moneys for Chugach image building,” the group stated.

Members voicing frustration say they feel misled by the shift from an opt-in to an opt-out system. Some see the program as a distraction from Chugach’s core responsibility of keeping power affordable. Others resent being automatically committed to charitable donations without their explicit consent.

Customers who wish to decline the program must call (907) 762-4129 with their account details to opt out.

Outside dark-money Alaska Center now controls 71% of Chugach Electric board — and your utility bill

66 COMMENTS

  1. What I find interesting is that if we the populace don’t use enough energy, Chugach electric has to increase their rates in order to keep up with costs of doing business. However, Chugach also mysteriously has enough money to donate to other interests and charities.
    How is it we have to pay higher rates to cover costs of lower output, yet they have enough to donate? How does that make any sense?

    • And doesn’t Chugach encourage energy savings & using less energy to save the planet?
      So they can raise our bill because we used less energy?

  2. I did not authorize them to increase my bill for their charity. Time to contact the board and let them know you don’t either. Here’s a link to the contact page. ‘https://www.chugach.com/contact-us/

  4. Yep – keep an eye on the recipients of the grants and their relationships to the “Chugach-appointed board”. No hanky-panky here…. Follow the money.

  6. Well, Shawn ‘somethinorother’ didn’t answer his phone. He must be getting swamped with calls. I left a detailed message and hope this puts an end to it.

  7. Let’s be clear.
    Chugach Consumers is not a legal entity, it has no members, and it appears to be an association of two or three angry libertarians.
    So, any reference to “the group” or any intimation that “the group” has members is the worst kind of journalism….

    Oh yeah…. I almost forgot where I read this…..

    • We are Chugach consumers.
      Whats your point? We shouldn’t know this is going on?

      Oh yeah….. almost forgot you’re a liberal….
      You spend other people’s money to make yourself feel good.

    • Marc Grober please focus on the point of the article. Chugach Electric wants to use YOUR money to send to a charity of ITS choosing. What if CE decided to send your money to Moms For Liberty or Americans For Prosperity? Would you approve. This is similar to the K12 education system in AK. Both are extracting money from customers for their own purposes.

      BTW, did you know that Chugach has the highest electric rates in America? How about 23 cents per kilowatt hour? Insane. But it must pay its IBEW employees “fair” compensation.

  8. Ask them what it cost us to subsidize the windmills on Fire island?
    They should only be doing utility work that saves ratepayers money!

  11. Calling this number: Recorded announcement that says to enter your account number followed by #. Do that and it again asks for your account number followed by #. Then it says “goodbye”.
    More funny business from your woke electric utility.

    • Here’s what I learned after calling and encountering the same frustrating issue. I was told in June Chugach changed all account numbers to a new 7 digit account. If you are using the old account number like I did…the message. Check your statement after June to find your NEW account number or call customer service. Isn’t it wonderful we have this platform that we can share what we have learned with our fellow community members. Neighbor helping neighbor, each one reaching one! : )

      • Ak Lady, YOU ROCK because I to was having the same issue and just looked at the newest bill and in fact it shows a DIFFERENT ACCOUNT NUMBER…Sneaky!!
        Thank you!!

      • I ended up calling customer service and a nice lady service agent opted me out. I then read back my account number and she said the CEA had changed all account numbers. They could have avoided this by making their opt-out software recognize both old and new. Or, even better, not setting this up for automatic opt-in in the first place.

  12. Thank you for this article. I was not aware of this disgusting and abusive practice.

    I called the number to opt out. I wanted to provide my comments about this hideous and unscrupulous practice. They set it up as a recorded automated process to insulate them from the negative comments that are so richly deserved.

  13. The Cents of Community program was never advertised as an opt-in. When it was approved by Chugach members in the 2023 election, it was as an “all in” with the option to opt out. We have made the opt out as simple as possible with one phone call (762-4129) and your account number. Additionally, the Board of Trustees that will review grant requests and ultimately grant the money will be made up of Chugach members. We get asked all the time to support programs. This will be a good opportunity for Chugach members to direct where the money goes. The comments that the money will go to pay member bills (on various platforms) are incorrect. Member bills will not be paid. It is for 501(c)(3) organizations within the Chugach service territory. No religious or political. Thank you for the opportunity to clarify. Julie Hasquet, Sr. Manager, Corporate Communications

      • They buried it as a bylaw change in the 2023 election. That change was approved by those that voted that year. I also vote and pay pretty close attention and don’t remember it either. OTOH, opting out is pretty easy.

        One thing to do is bombard the Board with requests for a bylaw change in April that will change the Cents of the Community program from opt out to opt in. Cheers –

    • “…the Board of Trustees that will review grant requests and ultimately grant the money will be made up of Chugach members”

      So what if it’s made up of Chugach members? What if I disagree with the choices of these anonymous members? Sure, I could Opt-Out, but why should I have to do that? The program should have been Opt-In from the beginning.

      This is a dumb program whose only purpose is to give the woke board something to virtue signal about. And, I will state this as true until you prove me wrong: The majority of your members would rather make their own choice as to charities, if any.

    • “We have made the opt out as simple as possible with one phone call (762-4129) and your account number.”

      I would not even know anything about this if I hadn’t found and read this article. Many members who would be steadfast against having money taken from them without their consent will not know that they are having money stolen from them. If CEA wants to be an ethical organization, it should have a very open and overt information blitz by every communication channel for several months to give members every opportunity to be aware that they can opt out if they want to. Having a phone number is not “as simple as possible” for members who are not aware that they are about to have money stolen from them. I would not be aware of this without this article.

      This whole thing is unethical scumbaggery without ample opportunity with several months notice and multiple communication channel opportunities to opt out.

    • Julie:
      In what delusional world do you think an “all in” program of this type is appropriate in any way? Suddenly, without my knowledge or consent you are taking the fruits of my labor away from me and using it for things I may not agree with?
      .
      One has to be a special kind of stupid to think this is good corporate policy in any way. Do you order for everyone at the table without even knowing what they like to eat as well? Then demand they must eat it, because they did not know ahead of time you were going to order and chose to opt out?
      .
      Your post here claims you are the Sr. Manager of Corporate Communications. What kind of public relations do you think you got out of this? If you knew of this program, and did not say “My workload just quadrupled because of this. There will be no way to spin this as a positive.” you are complicit in this stupidity.

    • Chugach is morally corrupt and is financially close to bankrupt. The ML&P merger is a total failure and was “supposed” to bring savings. Leadership is a total failure. Why hire a regulatory analyst to run your utility? Answer: Because the Chugach Board is running the day-to-day utility business to ensure it is woke and meets the ideological needs of their climate and renewable special interest masters.

      This is the third major rate increase in less than 10 months and yet they waste money putting Chinese solar panels on their power plants. They wouldn’t need to increase rates if they stopped wasting our money on a $60 million dollar operations center. Remember the article comparing Chugach to the Titanic? Just like the Titanic, Chugach is broken and sinking fast.

      Fight back! Opt out! Write the RCA that you oppose the rate increase. Write that\ you want the financial management of Chugach to be taken over by the RCA because the Board and management clearly are incapable.

    • after asking us to conserve because of shortages. So we did and now they are whining revenue is down, Whatever happened to no rate increases if they were allowed to buy MLP it’s been nothing but rate increases, come on regulators stop the steal or are you bought off. My SS cola is estimated at 2.7%. Can you smell rats, hard questions for the mayor queen of trash town. Maybe we need national guard for clean up.

  17. Julie Hasquet, Chugach should stick to making power affordable and keeping the lights on. Why do people need their electric company in the business of making charitable contributions on behalf of its customers? Does Chugach get the tax benefits of contributions made with their customers money? I appreciate your explanation but it makes absolutely zero sense…or should I say “cents”.

    • Garnet: Our members wanted the round up program and voted for it. No. There is no tax advantage to Chugach. We are tax exempt. MEA and GVEA both have these programs and have for years. It is not new to the Railbelt. Thank you for the questions.

      • You should be ashamed of yourself. Anyone involved with this scam should resign in shame. No one should ever have any sum of money taken from them for some committee’s donation priorities without their express consent. I don’t recall any opportunity that I ever had to vote for or against this. It is a horribly idiotic concept in every way. You and anyone else associated with this should recognize your error and reverse this immediately and change this to a solely opt in donation scheme. Please undo this and restore any human dignity that you wish to have.

        This is theft, pure and simple.

      • Did those members who voted for this (who were given proper notice and opportunity to vote) specifically vote for an automatic enrollment with a requirement to opt out to avoid the theft of personal assets or did someone within CEA decide on the automatic enrollment afterwards?

      • Please post the exact wording of the motion that members were asked to vote on. I am interested in seeing how explicit the wording was to make it clear that members were voting on an explicit automatic enrollment program. Beyond that. I am interested in the legal implications of some members of a member cooperative being able to impose a tax on other members without their consent. While political subdivisions (federal, state, local governments) have that authority, I am not persuaded that a member owned electric cooperative does.

        • exact verbage from the 2023 election pamphlet:

          Amend the Bylaws as follows:
          ARTICLE XII
          MISCELLANEOUS
          SECTION 4. Utility Bill Round Up Program
          The Association may establish a program
          to permit members to round up their bills
          to the nearest dollar. The monies
          collected shall be used for 501(c)(3)
          charitable purposes in the Association’s
          service area. Members may be
          automatically included in this program,
          but may choose not to participate in the
          program by notice to the Association.

          • So, Julie Hasquat is lying by omission.
            Her claim that the members voted for it is questionable, as the vote was for the updated bylaws.
            The claim that the members voted for it as an “all-in” with an option to opt out is dubious at best, and an outright lie. Reading the bit you provided there are a lot of “may” statements. They may be included carries the same weight as they may opt out.
            .
            The board decided, without clearly defining to the members that everyone was OK with this program implementation as a must-do with an option to opt out, instead of an option to opt-in without letting the members know.
            .
            Too bad they are a utility and a monopoly in the Anchorage bowl. That is the behavior that drives me to the competitor. Permanently.

      • Prove that “members” voted for it. Then, how does CEA justify a $114 bill in midsummer, with broad daylight, LEDs, while warm without heat? Pffft! Jackbooted thieves.

    • CEA: Cut the crap and focus on providing service to the rate payers! The middle class taxpaying public has more hands in their pockets than they need to tolerate more BS like this from a supposed service provider! I don’t do “round up” at the supermarket either because I have no choice where the $$ goes, but I do contribute substantially to charities of my choice.

  18. If you don’t know your account number off the top of your head, just hit “0” and tell the nice person that you won’t be able to pay your bill next month. They will have your account number pulled up in a flash.

  19. I am astonished but given today’s poor judgement demonstrated daily by public officials, sadly l am not surprised. This represents criminal theft each time your money is donated without your approval. Who who who made this decision?

  20. Doesn’t matter to me, I have solar panels and haven’t paid a cent toCEA since they were installed. Actually, CEA owes me money!

    • I’ll take Things That Never Happened for $400 please Alex.
      .
      Seriously, you are not generating enough with your solar panels in AK to earn a penny return from CEA. The only way you are actually living with no power source except for solar panels is if you are 100% off the grid. In other words, you would not be paying CEA anything anyway.
      .
      This is not opinion, it is physics. There is just not enough solar energy making it to the surface in Alaska to make your claim realistic. Either that, or you have several dozen acres of solar panels.

  22. I was looking on Facebook late last night and am so glad that I came across Liz Vasquez profile I read it cause it mentioned Chugiak electric. But by the time I read it in its entirety I wasn’t happy. I immediately called the listed number to opt out of this. I don’t get how they’re able to do this and not say anything to anyone. I never recieved a notice via mail or email … this is concerning and not acceptable I then emailed am650 talk radio show crash and mike Picaro show and he read my concerns at 5pm today.

  24. Word is that Chugach has collected record profits since the sale of MLP. They attract high-profile leaders, so the high salaries must be there. One reason their profits could be down is because of extravagant salaries, travel, and public relations consultants and expensive polished political s campaigning. More transparency in this is needed, or else “members voted” on only partial info.

    Let’s keep up the requests to opt out and for transparency. Are they really giving handouts to Planned Parenthood?

  25. According to a brief google search, 501(c)(3) organizations are free from federal taxation. Now, what organizations are included in the CEA umbrella to extract more $$ from rate payers without their consent? Has CEA been clear on this issue? I’m not a CEA customer, but I can envision another utility trying this policy on rate payers.

    • This is a lie. The only automatic upgrades that GCI provides are ones that are free. Free is not remotely like being “taxed” by Chugach and forced to opt out if you don’t want to participate. Get your facts straight.

      • Unfortunately, this is not correct. I received a letter from GCI yesterday informing me that my plan has changed from 600GB to 800GB per month AND that I will have a $10 rate increase in October “to reflect the added value”. I didn’t ask for the increased bandwidth and I certainly didn’t ask to be charged more for the increased bandwidth that I did not request.

  28. “Of all tyrannies, a tyranny sincerely exercised for the good of its victim may be the most oppressive” is attributed to C.S. Lewis.

    The real motives of liberals have nothing to do with the welfare of other people. Instead, they have two related goals — to establish themselves as morally and intellectually superior to the rather distasteful population of common people, and to gather as much power as possible to tell those distasteful common people how they must live their lives.
    —Thomas Sowell

  30. Ak Lady, YOU ROCK because I to was having the same issue and just looked at the newest bill and in fact it shows a DIFFERENT ACCOUNT NUMBER…Sneaky!!
    Thank you!!

  31. Breaking News! Chugach Electric Association has announced that “The Center (for the environment)” has been chosen to receive your charitable contribution. This has been confirmed by the CEA board of which 71% of its members are controlled by The Center (‘https://mustreadalaska.com/outside-dark-money-alaska-center-now-controls-71-of-chugach-electric-board-and-your-utility-bill/)

    • Can you verify source for this David? If corroborated it confirms the very concerns customers have over their money being handed over to left wing groups by a CEA board that is known to be run be leftist.
      Julie’s comment BTW is laughable! No politics?? Probably a majority of groups who claim 501c3 status are both political in their goals AND progressive/marxist/socialist. SMH…

    • Thanks for the information, David.
      .
      What assures us this isn’t a structured money-laundering scheme, perhaps one leg of dark money’s journey into Alaska?
      .
      What’s structured money-laundering? The practice of executing financial transactions such as making bank deposits in a specific pattern, calculated to avoid triggering financial institutions to file reports required by law, i.e. the United States’ Bank Secrecy Act and Internal Revenue Code.*
      .
      What’s a financial institution? A business entity serving as an intermediary for financial monetary transactions.**
      .
      Some of what’s known:
      (1) Reported amount of money potentially in play is said to be $6 x 92,000 customers = $552,000 annually.
      (2) The 92,000-customer number originates from Chugach Electric Association.
      (3) CEA customers must “opt-out” telephonically to avoid an otherwise automatic charitable contribution added to their electric bills.
      (4) MRAK readers report their CEA account numbers were changed.
      (5) Automated telephone “opt-outs” using pre-change account numbers were unsuccessful.
      (6) CEA Board of Directors chose “The Center (for the environment)” to receive members’ “charitable contributions”.
      (7) 71% of the CEA Board are controlled by The Center.
      (8) Average CEA customers can’t see for themselves how CEA’s elections work.
      (9) Average CEA customers can’t verify the number of Chugach accounts, whether 92k or 192k.
      .
      What seems worth asking:
      (1) Does CEA have the means to maintain a customer list in excess of 92k which may include inactive or deceased rate-payers whose accounts can be used as proxies for donors?
      (2) Were account numbers changed with a view to obscuring the existence of numerous inactive CEA accounts?
      (3) Was automatic opt-in done to make it easier to move donations in and out of inactive accounts?
      (4) Does CEA act as a financial institution, subject to Anti Money Laundering reporting requirements, by funneling members’ donations to charities?
      (5) Could the intent behind an inflated customer list be to spread dark-money donations over many inactive accounts thereby making it look like many small donations, which might help conceal the donor source and –not– trigger AML reporting requirements?
      (6) Does CEA have the opportunity to create a strutured money-laundering racket, in other words, do officials have access, time, tools, knowledge, and skills to make it happen?
      (7) Does CEA have motive to engage in structured money-laundering; do the facts that 71% of the CEA Board are controlled by The Center and the CEA Board chose “The Center (for the environment)” to receive members’ “charitable contributions”, explain the motive behind the donation scheme?
      .
      *https://en.wikipedia.org/wiki/Structuring
      **https://en.wikipedia.org/wiki/Financial_institution

  32. Chugach Electric is in deep debt (1.8 billion, yes billion!), about 85% debt to equity and on the rate payer’s backs. With 90,000 plus members (meters) that comes out to $20,000.00 debt for each meter. So your house has $20,000 debt assigned to it. Just saying!

  33. Anything negative can happen when Democrats are at the helm!! This is just plain EVIL!! Sneaky, liars and untrustworthy people!!

    • I can just see the Anchorage homeowners‘ property tax bills from the MOA display this ridiculous nonsense in the future. Just help a neighbor in need and “round up” to give the poor homeless souls a leg up while they make no effort to improve their lives! Just let them eat free food and defecate and fornicate on the streets while we pay the bill. Snort!

  34. I understand that the corporate do-gooders at CEA think we should hand over our money to others, so why don’t they just let us do it? They could put little 1984 messages in the news letter reminding us to “share”. They could highlight members who give a lot. Why does CEA have to handle the money? Generate and distribute electricity as efficiently and reliably as possible. Chugach, stay in your lane.

  36. This from the same clowns that want to shut down the Eklutna hydroelectric plant. Anchorage muni, Chugach Electric, MEA all just one big organized crime racket.

  37. It’s time for another electric company to take over. Chugach needs to file for bankruptcy due to mismanagement and possible embezzling.

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