Chugach Electric’s controversial new charitable giving program will not be curtailed by the Regulatory Commission of Alaska, but Attorney General Stephen Cox has issued a consumer protection alert, warning citizens about such programs that automatically take additional money from customers, unless they proactively opt out.
Earlier this week, the Regulatory Commission said it did not have the authority to address the Chugach Electric controversy, which involves rounding up the monthly bills of roughly 90,000 customers to the nearest dollar and then funneling that money to special groups and causes.
Last month, Cox called the scheme “compelled-subsidy,” as it forces captive customers to proactively opt out in order to avoid having to pay for organizations and causes that they may or 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,” Cox stated in September.
On Oct. 7, he sent out a general alert, warning Alaskans to be aware of automatic charitable billing programs, and to alert his office if they have complaints.
“While some round-up programs are well-intentioned, automatically enrolling customers to make charitable donations raises serious questions of consumer consent and constitutional freedom,” Cox cautioned. “Programs that depend on customer inaction rather than affirmative choice can cross the line from voluntary giving to compelled participation.”
ALASKA WATCHMAN DIRECT TO YOUR INBOX
He added that consumers should be mindful of whether a bill is opting them into paying additional money, even if that extra money is being donated, and also be mindful of how their donated funds are used in these cases.
“Without clear safeguards to ensure neutrality and accountability around charitable purposes, there is a risk that money collected from ratepayers could be channeled into advocacy or special-interest slush funds rather than neutral community needs,” Cox stated. “Transparency and independent oversight are essential to ensure that such programs serve genuine charitable purposes.”
Cox advised Alaska consumers to take the following steps:
— Review your utility or service bills carefully to see if a “round-up” charge is included.
— Contact your provider to confirm whether you have been automatically enrolled and to exercise your right to opt out.
— Report confusing billing or charitable charges to the Alaska Department of Law’s Consumer Protection Unit by filing a complaint on our website or by calling 1-888-576-2529 and requesting a paper complaint form.
Cox said the Department of Law will continue to monitor automatic donation programs in Alaska and work with other state attorneys general to identify best practices and ensure strong consumer protections nationwide.
According to an Anchorage Daily News report, Chugach electric plans to launch its “Cents for Community” program later this winter.
8 Comments
Yes, I was charged and yes, I opted out with the number provided in Chugach Electric information to the customer. But, not before I called them and got upset over the blatant charge to my account without asking me if I wanted to participate. My money goes to what charity I choose before it is donated to the charity of my choice. I’m sure the customer representative was upset and giving lots of excuses they should never have been put in that position to explain. So, AG Cox, sue them for the customers that may not realize what happened. I want to deduct my charity choice on my taxes with the thought that I made the choice. I think what they did is wrong, wrong.
Haha, AG Cox is absolutely *on point*! Automatically rounding up my hard-earned cash for some cause I didnt explicitly choose? Thats like trying to pay my taxes with Monopoly money – fundamentally wrong! I say lets require a signed, written permission slip for every single cent donated, maybe even notarized. And while were at it, maybe the charities should send me a receipt so I can write it off on my taxes and feel *truly* virtuous. Thanks, AG Cox, for protecting our constitutional right to choose *not* to be charitable, one opt-out at a time!quay random
Chugach Electric is stealing people’s money. If Chugach Electric would like a charitable giving program they can give their own personal money.
I personally feel that a one-time opting out action is not a big strain on myself to manage taking place if their beneficiaries are going to be ever-changing. But I suppose one way Chugach can rectify this on their behalf is to make themselves accountible – displaying on an easily accessible forum exactly where they intend to be donating. If they are scattered and don’t keep it consistent, leaving people to have to constantly follow what they are doing, that would likely create more instant opt-outs. If they can be predicatable for a longer term and it was a cause I support and am not opposed to, they can have my spare change on a dollar and claim that benevolent donation.
The real issue is that they invited people to opt out instead of ever inviting members to opt in. The other problem is that when you call to opt out, all of a sudden your member number has been changed (without notification) which was purposeful and problematic for anyone wanting to opt out. At this point in the call most members become frustrated and hang up. This is what Chugach was hoping for. It’s similar to the Alaskan cellular companies who conveniently use all non-English speaking call centers for their customer service. If it’s too difficult to alter, the hope is that the customer/member gives up and they have less people opt out because it’s too difficult to do so. It’s much like having to over-prove your identity with your bank these days over the phone to say even procure your balance – yet men can use women’s bathrooms or play in their sports without proof of anything but the desire to do so.
I’m happy for you that the stealing of your $6 isn’t an issue. For some of us who budget and go without basics when necessary, it could be. It’s especially a problem when chugach will send you to collections because you owe them 2 cents but has no issue siphoning off an extra $6 each month.
Chugach electric is a left leaning company now. Take an inch, take a mile. The boiling frog in the water. They simply needed to have you opt in, not out. If I was charged that extra round up. I would deduct that extra cost from my bill. I’m not paying your round up.
Funny how the AG states, “Without clear safeguards . . . ” His office IS the safeguard. I’m really tired of hearing, “It’s not our job . . . ” using the prop of lack of authority. I ask consumers, why then would we (the state) pay for that?
GVEA did the same thing in the interior a few years ago. What a load of hooey. Once I found out I called them up, gave them an earful and opted out. Its quite the scheme, set it up and hope nobody notices.