Chugach Electric compares very favorably in benchmarks to Alaska Railbelt utilities.  Chugach is the most efficient and reliable power company in Alaska.  Chugach must continue to strive for increasing productivity and lower cost.  In measuring performance Chugach must look to its peers, which are the power utilities in the Alaska Railbelt.  Chugach has transmission lines that run through a National Wildlife Refuge, State and National forests, State parks and active seismic and avalanche zones.  It also owns and operates remote generation and hydroelectric plants.  Lumping Chugach into benchmarks made up of cooperatives from Kansas and Alabama is like saying Alaska should be producing more cotton.

Document: Peer Presentation 2007
Document: Rate Benchmark

Chugach Electric has complied with its Bylaws in allowing all qualified contractors to bid on its construction work.  Over 85% of all contracted work representing about $55 million was bid without a union signatory requirement in 2005-06.  This assures the members of getting the highest quality work at the lowest price.

Chugach Electric should continue to promote free and open competitive bidding.

Chugach Electric board members are responsible for making decisions that have multimillion-dollar impacts on its ratepayers.  Important information intended to persuade the board to adopt a particular course of action is frequently provided in executive session or through other confidential channels that properly may not be appropriate for immediate public review or scrutiny such as trade secrets and attorney-client information

Due to events where former Director Ray Kreig made the unauthorized release of confidential Attorney-Client Privileged and other sensitive information, the Chugach board adopted Board Policy 128 “Confidentiality” in October 2002 after much review and discussion. Following State Statues and common law, it requires Chugach directors and employees to keep confidential information confidential and to surrender confidential documents received and used during their board tenure even including their own notes.

Directors and employees duties and responsibilities to the Association end with their termination from employment or service on the Board.  It is at that time they must surrender all confidential information belonging to the Association.

Board Policy 128 has been actively enforced as every former Director since 2000 has verified in writing they have destroyed, removed or returned all Association Confidential material with the exceptions of Uwe Kalenka and Ray Kreig.

The Association should conduct its business openly and with proper notice while protecting the Association’s trade secrets, legal position and other legitimate confidential information.

As a cooperative that is operated under democratic principals, it is imperative that proper notice and openness be the standard.  Directors and members can not participate in the governance of their cooperative without proper notice and openness. 

 

Everything secret degenerates, even the administration of justice; nothing is safe that does not show how it will bear discussion and publicity.”
                                                Lord Acton,  British historian 1861

Wind power and other renewables should be part of Chugach Electric Association’s diversified energy generation portfolio.  The higher initial capital cost of wind power and other renewables is offset by eliminating fuel cost over the long term.  Through extensive investigation, Fire Island has been determined to be the most ideal location locally for wind power energy. 

The State of Alaska should fund the Renewable Energy Fund.

Chugach Electric should sincerely consider the recommendations of the Renewable Energy Committee and adopt a policy and objectives for renewable energy.

Chugach Electric’s primary generation facility is the Beluga plant located across Cook Inlet.  It is a remote site that requires an expensive camp operation.  It is over 40 years old and nearing the end of its useful life.

Replacing that generation with newer more efficient equipment will reduce Chugach’s fuel use and lower greenhouse gas emissions.  The savings in lower fuel cost will offset the interest expense incurred from bonds issued for the construction.  Additional savings will come from reducing the staffing at the Beluga camp.

The planning, maintenance, operations, customer service, contracting and management of Chugach Electric is all accomplished through its employees.  Over the past eight years, the number of meters at Chugach has risen by 12% and the amount of power sold has risen by 23%, while the number of employees has remained constant.  Keeping energy cost low is accomplished through increasing productivity.  Retaining and training a highly qualified and experienced work force is achieved through fair, competitive wages and respect.