Posted on 03/18/2005 11:10:05 AM PST by Ernest_at_the_Beach
Costs are going up for energy users. You've already noticed it at the pump and read the headlines about record oil prices. Next, watch your electricity bill.
ELECTRICITY
The California Public Utilities Commission made decisions Thursday that will increase electricity rates for Edison residential customers. Users will see their electricity rates increase an average of about 7 percent starting next month. A key reason: rising natural-gas prices.
AT THE PUMP
Gasoline prices have long exceeded $2 in California. Now AAA says more than 30 states have reached the $2 mark for unleaded. The most recent report finds prices in California averaging $2.328 per gallon. In Orange County, the average was $2.35 on Thursday, up two cents from the previous day. Even with the high prices, Californians continue to drive for work and leisure. Last summer's travel season was the most active since 2001, according to AAA.
(Excerpt) Read more at ocregister.com ...
Edison to raise rates starting next month
Utility cites rising natural-gas prices in increasing residential rates by an average of about 7 percent.
The Orange County Register
Southern California Edison's residential customers will see their electricity rates increase by an average of about 7 percent starting next month, mostly because of rising natural gas prices, the company said.
Natural gas is the biggest input at most electricity generating plants. Many of Edison's contracts with generators call for prices tied to the cost of natural gas.
The California Public Utilities Commission on Thursday approved three separate decisions that will affect Edison's rates. The precise effect of the changes won't be known until next month, but they are likely to result in an average increase of 5 percent across all customer groups, with residential ratepayers getting a slightly bigger hike and business customers getting a lesser one, said Akbar Jazayeri, Edison's director of revenue and tariffs.
The changes will take effect April 15, Jazayeri said.
About 40 percent of Edison's residential customers, those who use 130 percent or less of their monthly "baseline" allocation, won't see any increase at all. Baseline is a discounted amount of electricity intended to cover minimum needs.
For the other 60 percent of Edison's residential customers, the average monthly bill could jump 10 percent.
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See Link for rest of the article.
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Oil prices hit a record. AAA says gasoline prices are going up.
Q. What's up?
A. The OPEC cartel this week pledged to increase its output but said Thursday that the growing economies of the United States, China and Japan would keep demand ahead of supply this year - keeping upward pressure on oil prices.
Retail gasoline averages $2 a gallon or more in 35 states, AAA said. The fuel was most expensive in Hawaii at $2.441. Prices averaged $2.328 in California. In Orange County, the average was $2.35 Thursday, up 2 cents from Wednesday.
Q. If oil prices go up, doesn't that mean the price I pay for gasoline goes up?
A. Not necessarily. In California, we get 48 percent of our oil from within the state; 22 percent comes from Alaska; and the rest arrives from overseas.
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Excerpted
See Link for the rest of the article.
Rising oil costs could lead to higher food expenses
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As shipping and packaging grow more expensive, customers are likely to bear the burden.
A top food industry expert said this week that rising oil prices could force U.S. manufacturers to raise prices to offset higher transportation, packaging and other costs.
Mark Baum, executive vice president of the Grocery Manufacturers of America, told the Reuters Food Summit that higher oil prices were "a very serious issue" for the food industry.
He said that, until now, many food manufacturers have succeeded in offsetting the need for price increases but that this could change if oil prices keep rising.
"At some point in time a pass-through may become inevitable." Baum said.
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Excerted...
For rest of the story see Link.
High oil prices continue rattling stocks
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ndexes are mixed as concerns about interest rates and slower growth drag down Wall Street.
MarketWatch
Stocks ended mixed Thursday amid concern higher oil prices could slow economic growth, stoke inflation and accelerate the pace of future interest rate increases.
The Dow ended down 6.72 points at 10,626.35.
The Nasdaq put in a fractional gain, up 0.67 point at 2,016.42 while the S&P 500 edged up 2.14 points to 1,190.21.
"The market is being weighed down by the price of oil as well as (the level) of interest rates and concern about what the Fed might say at their meeting next week," said Robert Pavlik, portfolio manager at Oaktree Asset Management.
Pavlik said the market is concerned that growing inflationary pressures in the economy could force the Federal Reserve into becoming more aggressive about raising short-term interest rates.
Within the benchmark index, Exxon Mobil rose 2 percent on the strength in crude prices.
Fellow Dow component General Motors didn't fare as well, extending a 14 percent decline in the previous session as the automaker's stock continued to reel from its profit warning Wednesday. GM ended down 2.3 percent.
Meanwhile, shares of American International Group gave up 3.3 percent after the insurer said it would delay filing its annual report due to its recent boardroom shuffle, which included the departure of its longtime chief executive, Maurice "Hank" Greenberg.
In the broader market, advancers outpaced decliners by a ratio of 18-to-13 on the New York Stock Exchange, while winners and losers were evenly balanced on the Nasdaq.
By sector, biotechnology companies, semiconductors, brokers and computer hardware stocks all moved higher, although gains were less than 1 percent.
Energy and oil services stocks also put in a solid performance on the rise in crude prices. Volume was nearly 1.6 billion on the Big Board, and 1.7 billion on the Nasdaq.
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Excerted
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For rest of the story see Link above.
Here in Charlotte I don't expect a raise since my electricity comes from nuclear power plants.
its up to $2.19 a gallon here in lexington, KY. I hadn't seen prices this high since I left california. It was hovering at $1.99 in some places then, and that was about eight years ago.
We have one where I live (CA), as well. Never had a problem with it.
Our local assemblyman (a Republican) has suggested looking into converting it to use natural gas. The local Mothers fo Peace group loves him.
This just goes to show that all the stupid people aren't on the left side of the aisle.
Probably not.
Of course oil is involved in the operation of your nuclear plant- uranium needs to be mined and transported to the plant and are likely parts required for maintenance as well. Then too the spent rods have to be packed up and sent to Nevada for storage in Yucca so that involves diesel or gasoline as well.
Still these factors are likely a small enough component of operating expenses that your rates should remain the same.
There is a politician who understands the ignorance of his constituents.
It will anyway. All the grids are interlinked as we discover every time the grid goes down. Power is bought and sold, it's a market unto itself.
It's running from 2.33 to over 2.50 around my part of SoCal.
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