The Chugach Electric Association Board of Directors voted Tuesday to suspend for three months its anticipated “Cents of Community” program, a member-driven initiative aimed at bolstering local nonprofits through voluntary bill round-ups.
The agenda item revisited the program first greenlit by a majority of voting members in a 2023 bylaw amendment. Under the plan, Chugach’s roughly 90,000 members would automatically round up monthly electric bills by an average of 50 cents—totaling about $6 annually per participant—with funds distributed to 501(c)(3) charities via the newly formed Chugach Electric Association Charitable Foundation. Similar opt-out programs have thrived for over 15 years at Matanuska Electric Association and Golden Valley Electric Association without issue.
Discussion centered on a abrupt shift by the Alaska Attorney General’s Office, which in September 2025 flagged potential constitutional violations, including First Amendment “compelled speech” concerns due to the automatic enrollment of captive utility customers. Previously neutral, the AG argued the opt-out model could force unwilling contributions, prompting an indefinite delay. Board materials emphasized Chugach’s belief that the concerns are “unfounded,” but highlighted unacceptable financial risks and the need for compliance. The Chugach Board of Directors underscored the program’s alignment with the cooperative’s “Concern for Community” principle, while directors weighed alternatives.
The decision follows months of backlash, including opt-out complaints and regulatory filings, but reaffirms the utility’s commitment to grassroots philanthropy. As legal consultations proceed, members can monitor updates via Chugach’s website.
All members who complain about this activity by Chugach Electric needs to file a complaint with the Department of Law. It truly is an illegal initiation to use your funds for whatever reason the company decides. NO, NO and No. When you donate money to any cause, you put it on your tax deduction and not a company. Plus, they changed every account number in the electronic billing system to accomplish their goal of taking and using your money. It is almost a seamless move on the customers. File a complaint on the criminal activity. Opt out for good and complain to the company but file a criminal complaint against them. Its too bad ML&P sold to them. Chugach Electric has been a badly managed company from the get go. Poorly managed by their board and careless attitude and work of internal employees.