CHUGACH CONSUMERS MEDIA RELEASE

It has recently been discovered that the Municipality of Anchorage quietly and without any known public deliberation or notice to the Assembly signed a deal granting a monopoly in construction jobs on the Northern and Southern Intertie projects to the International Brotherhood of Electrical Workers. Chugach Consumers is very concerned about the millions of dollars in cost increases to Anchorage electric utility ratepayers that this action will cause. The following leaflet was distributed at the Alliance mayoral debate on April 4. The day before, Mayor Mystrom was asked why this agreement was signed and the other candidates were asked if they would rescind it. Mayor Mystrom didn't seem to know anything about it and he was unable to answer if he would repeal it. Tom Fink was aware if it and he said he would rescind it. A transcription of the answers given is attached.

On April 3, 1997 Candidates for Mayor @ HALO Meeting were asked the following question:

On December 6^th, the Municipality signed a monopoly labor agreement on Intertie construction with the IBEW Union. This is the same agreement that's been rejected by Chugach and Matanuska Electric Associations because it will inflate costs adding millions of dollars to the public's electric bill. Mayor Mystrom, what was the reason this agreement was signed?

Mayor Mystrom: On December 6^th of this past year? I'm not really sure. I haven't....that hasn't come up. ...I haven't talked about that for months and months.

Mr. Fink: I don't understand why it was signed. The Memo of Understanding has to do with some actions from a good number of years ago, the Unions said they would work on behalf of the Intertie money if the utilities would agree that any work having to be done on the Interties would have to be done by an IBEW associated contractor and it came before me when I was Mayor and I told the Manager of ML&P, do not sign it, so we didn't sign it. I think at the time we were the only ones who didn't sign it. I heard sometime since I started running for office it had been signed and I'm really puzzled to why this was signed?!

Any other candidates care to respond? [none did]

I guess the follow-up would be, Would you take immediate steps to rescind this agreement?

Mayor Mystrom: You know...I'm not familiar with it. I'd have to go back and look. I'd have to bring that back in front of me. It's not something I've considered for the last six months.

Mr. Fink: I would.

[from transcription of video tape from Chugach Consumers]

CHRONOLOGY

1990 The International Brotherhood of Electrical Workers Union signs a highly controversial Memorandum of Understanding (MOU) with railbelt municipal and cooperative electric utilities. This MOU restricts construction to IBEW Union companies only on $150 million in electric transmission lines partially financed with state funds. Other Unions and open shop contractors are excluded. Cooperative boards are dominated with directors placed there with campaigns paid for by the IBEW and its allies. No attention given to the costs of restricting bidding.

ML&P General Manager Tom Stahr refuses to sign the MOU because he says "I think it was felt this probably wasn't a legal thing to do (Anchorage Times 2/25/90)."

1990 IBEW Union dominated Matanuska Electric Association Board reverses itself upon advice of its attorney and rescinds the MOU.

1993 MEA members pass Free, Open & Competitive Bidding Bylaw with 78% YES vote.

1995 New independent Chugach Electric board commissions study evaluating the cost to electric ratepayers of restricted IBEW Union-only bidding with the MOU. Wharton labor economists Northrup & Thieblot find that the MOU will raise project costs at least 10%. Consumers share of cost will go up 20%.

1996 Chugach Electric members pass Free, Open & Competitive Bidding Bylaw with 80% YES vote. Independent Chugach board rescinds Chugach participation in the MOU.

1996 Municipality signs the 1990 MOU with the IBEW Union, apparently with no consideration by the Anchorage Assembly or public consideration. WHY?

1997 First bids under Chugach Electric competitive bidding bylaw yield stunning savings: 40% under engineers estimate (Susitna Crossing); 50% under estimate (Teeland Substation). Matanuska Electric first bids under their open bidding bylaw yield savings of 35% and 42% under MEA estimates.

1997 $2.8 MILLION TYEE PROJECT TRANSMISSION LINE NEAR WRANGELL. IBEW UNION CONTRACTOR LOW BIDDER IS STILL 48% ABOVE OPEN SHOP SUCCESSFUL BIDDER!!

WITH THIS HISTORY OF DRAMATIC REFORM NOW UNDERWAY IN ALASKA'S UTILITY INDUSTRY, WHY HAS THE MUNICIPALITY COMPROMISED THE INTERESTS OF RAILBELT ELECTRIC CONSUMERS AND SADDLED THEM WITH UNNECESSARY COSTS? WHAT CONCEIVABLE REASON COULD THERE BE FOR THIS?