February 1997
Number 156

Published by Chugach Electric Association, Anchorage.  Chugach is a not-for-profit member-owed electric cooperative and Alaska's largest electricity supplier.

Best way for Chugach to
encourage economic development
is to lower everyone's cost of
electric service

Chugach has its roots in the 1936 Rural Electrification Act that led to the creation of over 800 electric cooperatives which brought power to much of America. These cooperatives have turned out to be key players in economic development activities. Like these other co-ops, Chugach has an ongoing economic development effort which is especially important as Alaska tries to lessen its over dependence on a petroleum-based economy.

A strong economic base leads to lower property taxes, better schools, roads and law enforcement.

Alaska competes in a global marketplace. To encourage new business investment, the Railbelt communities served by Chugach now more than ever - must enhance our many advantages, including the fact we live in a resource-rich state.

According to the Anchorage Economic Development Corporation, while Alaska's labor costs may be higher, these can be offset by lowering other costs - like utilities - as we compete with other countries and localities in the world economy.

Chugach Electric is doing its part to help Southcentral Alaska be more competitive. Traditional economic development efforts are narrowly focused on potential new industries and commercial customers.  But we're not just

concerned with the cost of power for large customers. We feel that the best contribution your co-op can make to community economic development is to do everything we possibly can to lower everyone's cost of living by offering the best value in our energy products and services.

As I have discussed in other columns, Chugach is moving aggressively on a number of fronts to reduce your costs, while at all times maintaining safety and reliability.

Chugach has not raised retail base rates in nearly three years. As a matter of fact, we've lowered them three times since July 1994. We have done this consciously, in part to help offset the modest increases in the fuel surcharge we have implemented to deal with the rising price of fuel for our power plants.

Making our region more competitive in the world economy will lead to job growth. That, in turn, will provide additional benefits to our retail members and our wholesale customers, Matanuska and Homer electric associations and the City of Seward. Not only will electric bills be lowered, but increased job opportunities will help improve the standard of living for you and your children.