In August, many members of Chugach Electric Association (CEA) denounced CEA’s automatic enrollment of all members into their “Cents of Community” Program. The program signed up every member to give an average of 50 cents per month to a grant fund which would be distributed to 501(c)(3) charities chosen by a CEA-approved board. Members would have zero say in which organizations received their hard-earned money.
The outrage caught the attention of Attorney General Stephen Cox, who brought the issue to the attention of the Regulatory Commission of Alaska (RCA). He argued: “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.”
However, the RCA denied responsibility for curtailing CEA’s undermining of First Amendment rights. The RCA argued that the program “does not involve a utility-related service … Nor does it alter or increase the compensation Chugach collects for providing a utility-related service.”
On the other hand, RCA Chair John Espindola and Commissioner John Springsteen dissented. They argued: “By rounding up its members’ bills for electric service to the nearest dollar, the program directly affects charges imposed on members and we continue to believe this falls within the purview of the Commission’s jurisdiction.”
AG Cox vows to continue to pursue the matter under the state’s consumer protection laws. “Yes, members can opt out — but they shouldn’t have to,” Cox stated. “The default should always be consent, not silence.”
The state Department of Law late Tuesday released a “consumer alert” about utility charity programs, asking Alaskans to “report confusing billing or charitable charges to the Alaska Department of Law’s Consumer Protection Unit.”
Generosity retains its virtue only when freely given. When coerced, charity programs like CEA’s “Community of Cents” become nothing more than legalized theft. The CEA should be held accountable for its manipulation of members’ money and circumvention of consent.
Read the full RCA majority decision and dissenting opinions here:
Read our previous coverage of the issue here:
Chugach Electric customers are charged up over automatic “Round-Up” charges – Must Read Alaska
Natalie Spaulding, a 2025 Hillsdale graduate, recently joined the Must Read Alaska team.
Chugach has spent itself into a financial corner and it is the most bloated utility in Alaska. Why would anyone reward them with charitable dollars is beyond me. Especially since the Board is controlled by special interests and they have appointed a charitable board that includes a bunch liberals like Bill Popp.
Chugach should focus on providing the lowest cost reliable service. Unfortunately it will take a complete overhaul of the board and management.
That’s a bunch BS, I’m forced to buy my electricity from this co-op, we have no other choice but, to buy from the monopoly. If they have enough money to give to charity then they have too much money and they should lower our rates, even if they it’s a shell game round up program. That’s the trouble when leftest scum bags infiltrate board rooms, be it the RCA, Chugach board or the Anchorage Assembly, even the charities receiving the money, it’s the same bunch of spruce beetles killing one tree at a time.
I don’t feel sorry for their stupidity in buying out ML&P we were promised lower electricity bills and all I’ve seen is an increase upwards of $100
It’s sad now they wanted to do a shifty shift maneuver taking cents but end result
is $90 plus million to their charity of there liking ??? I don’t agree with it.