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Alaska Star - June 19, 1997
Mayor Mystrom mulls utility agreement
ML&P manager resigns after 22 nears of service
By LEE JORDAN, Alaska Star Editor

Mayor Rick Mystrom is awaiting word from outside legal experts before deciding what to do about a document signed by Municipal Light & Power (ML&P) General Manager Tom Stahr. Stahr several months ago quietly signed a document agreeing that only members of a particular labor union would be given jobs on electrical intertie construction projects.

Meanwhile, Stahr, a 22-year veteran at the helm of the city-owned electric utility, resigned Monday. Mystrom Spokesman Chuck Albrecht said the city would not discuss the details of Stahr's departure. "He resigned," Albrecht said. As a department head, he served at the pleasure of the mayor.

It was clear that the general manager had not been following a course charted by the mayor's office. Stahr favored the city's purchase of an interest in the Beluga gas field and convinced the Assembly to approve the deal. Mystrom was not a fan of that move, which was financed by $120 million in bonds.

Stahr also advocated autonomy for ML&P as an authority similar to the one that oversees the city telephone utility. Mystrom prefers to retain administrative control.

Stahr "acted on his own," Albrecht said, when he signed a Memorandum of Understanding (MOU) between the International Brotherhood of Electrical Workers (IBEW) and members of the Electrical Utility Participants' Group. Stahr apparently did not inform Mystrom or members of the ML&P advisory commission of his action.

The MOU dates to 1990. IBEW officials maintain that they were asked by several Railbelt utilities to lobby the Legislature for release of money left over from the Railbelt Energy Fund. In exchange, IBEW said it wanted jobs funded by the money to go to its members.

That deal has come under fire from directors who since have been elected to the utility board of directors and who favor open bidding on construction contracts. A study done for Chugach Electric by an outside consulting firm claimed savings of several millions of dollars if the projects were built through competitive bidding among firms not bound by IBEW work rules.

ML&P was the only one of several Railbelt utilities that did not initially sign the agreement. Matanuska Electric Association (MEA) General Manager Ken Ritchey signed, but at its next meeting his board of directors refused to ratify the agreement. Chugach Electric Association signed the document but in 1996 rescinded its participation. Chugach has since been sued by IBEW, with litigation still pending in court.

Stahr's signature on Dec. 6, 1996 caught the other utilities by surprise. He had been quoted in a 1992 newspaper article as saying he was opposed to the agreement.

Chugach Consumers, a citizen group that promotes open bidding, registered a complaint with the Municipal Light & Power Commission on June 4. Clifford Gerhart, the group's executive director, said, "electric utility reform is well underway in Southcentral Alaska. MEA and Chugach members have passed bylaws mandating free, open and competitive bidding with 80 percent yes votes. Their wisdom has been more than confirmed by bids this spring that were 40 percent and 50 percent under engineering estimates."

Chugach Consumers, which states that it is not associated with the Chugach utility cooperative, has been warned by an IBEW attorney to avoid attempts to discredit the agreement. In an April 18 letter to Gerhart, Helene Antel Brooks wrote, "If the (Municipality) decides to repudiate the MOU or rescind it, as your organization has urged it do, formal legal action against all responsible parties is anticipated."

Chugach Electric on April 28 wrote to Mystrom, asking for a response to a number of questions about Stahr's signing the agreement.

"As a partner with ML&P in the Northern and Southern Interties, Chugach firmly believes our common interests can only be served by a candid and open dialogue on these issues," Chugach General Manager Eugene Bjornstad wrote.

Mystrom has not yet responded to that letter. Albrecht said the mayor is awaiting the legal analysis. Among the questions are whether the Municipality is bound by the signature of the utility general manager and what are the ramifications if the city ratifies or fails to ratify the document.