Chugach Consumers

**NOTE:  CEA BOARD WAS WARNED IN 4/02:  NEGOTIATE THE CONTRACT!!  -  DON'T JUST FOLLOW GENERAL MANAGER BJORNSTAD's DESIRE TO MEEKLY ROLL OVER AND ACCEPT THE IBEW UNION's FIRST OFFER!  Look at this chart.  Continuation of Chugach labor strategy will take over 50 years to get Chugach ratepayers a fair deal.  Chugach Electric has adopted the goal of being in the top 10% of electric utilities in the country in economic efficiency and value delivered to its customers.  Does it act like it really means it?  No!!  BAD DEAL, but board said yes  to it anyway (4-3)!



Chugach Consumers regrets to report that the extremely costly contract extension to 2006 was approved last night by vote of the Chugach Electric board:

YES:   David Cottrell, Pat Jasper, Pat Kennedy, Red Boucher
NO:     Bruce Davison (board president), Chris Birch, Jeff Lipscomb

The room was packed to overflowing with Chugach Electric IBEW Union represented employees. IBEW attorney Helene Antel Brooks testified in a manner that was perceived by many as threatening unless this extension was approved.

Two Chugach Electric ratepayers testified: Ray Kreig and Mike Golick.

South Central Alaska electric consumers will have to live with this meeting's results far into the future. There are serious secondary affects we expect to follow from this vote which says a lot about what certain board members voting YES think about campaign promises to co-op voters.  A more detailed report documenting this meeting will follow.  We will work to see that participants get all the credit they deserve.

Our pleas for the board to release information on costs and benefits of the alternatives to the members continued to be ignored.




Good afternoon,

It is well and good for the Board to have received an unexpected offer from the IBEW that could get lines of communication started.

You also need to get lines of communication started with Chugach members as well. They have a lot at stake and have a very strong interest in the savings that can come from a negotiated contract and especially from competitive bidding. Everywhere bidding has come up on the ballot it passes overwhelmingly.

The contracts donít expire until June 2003, there is absolutely nothing to be lost by considering it carefully...There is much to be lost by rushing acceptance. The board needs to have all relevant information Ė and that information needs to come from a diversity of sources.

In the last decade a grassroots organization of co-op members has volunteered many thousands of hours to work on the campaigns of Chugach directors who advocated in favor of free open and competitive bidding and other co-op good business management issues. Even right now a director is running on a platform plank of competitive bidding for the fourth time!

The words in those candidate statements are carefully considered by co-op members who vote. And in electing those directors they are giving their trust that those words have meaning and will be faithfully executed over the full term of the directorís office.

The terms of the Chugach bylaw passed by 80% YES vote are very clear:

It is deemed to be in the best interest of the Association: to encourage and require full and open competitive bidding of contracts; to take affirmative steps to insure that the Association selects the lowest responsible bidder for its requirements from among the broadest range of suppliers qualified by expertise and resources; and to insure that responsible bidders are not excluded.

Chugach Board has been recognized out in the community with thanks for proposing and obtaining passage of this common sense bylaw. [show plaque]


A.G.C. of Alaska promotes unrestricted competitive bidding for contract work as the most economical and fair system for owners and contractors alike.

Under President Ray Kreig and the new Board of Directors the Chugach Electric Association has adopted the use if unrestricted competition in the open markets as its method for contracting. This will greatly benefit the members, vendors and contractors.

The Associated General Contractors of Alaska recognize these efforts and thank the Chugach Electric Association for its commitment.

R. Greg Romack, President
November 16, 1996

AGC is the largest association of contractors and it has both union and non-union members.

Yes, I suspect the world has been shopped for legal opinions showing you the cracks and holes to crawl through to avoid the membershipís clear bylaw instructions to fully implement competitive bidding by October 1998.

I would like to suggest instead that the moral thing to do is to go out and scour the world for the best legal minds and expertise there is to help you proudly climb the mountain and implement the bylaw fully as the membership is trusting you to do.

You canít do it any other way then to negotiate this contract. Continue the dialog with the IBEW but please donít leave the membership out of this dialog.

Our communityís economy faces an uncertain economic future...It is relying on you to do the right thing on this matter.

Thank you.


Please send comments or questions to Chugach Consumers