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rising fuel costs

March 1, 2008

Lawmaker introduces gas prices resolution

Area state Sens. Musto, Mellow support resolution, which urges federal government to intervene.

Citing fuel prices that have doubled since 2000, state Sen. James J. Rhoades, R-Mahanoy City, introduced on Tuesday a resolution asking President Bush and the U.S. Congress “to control exceedingly high gas and energy prices.”

Senate Resolution 244 was then referred to the Senate Environmental Resources and Energy Committee.

State Sen. Raphael Musto, D-Pittston Township, is minority chairman of the committee and heavily supports the effort. Rhoades is a member of the committee.

Musto said the issue crosses state boundaries and therefore needs federal direction. “All it is is an informative thing, a study. We may get some recommendations to follow up on,” he said. “Definitely it’s getting to a point where the price is actually unaffordable.”

Noting the five largest United States refineries earned $228 billion in profits between 2001 and 2005, the resolution suggests “one lasting solution to this problem is to control the price increases energy suppliers pass on to consumers.”

State Sen. Robert Mellow, D-Peckville, also supports the resolution and “believes the federal government should work aggressively to tackle our nation’s worsening energy crisis,” spokesman Charles Tocci said.

Tocci said Mellow is working on the state level to put Pennsylvania ahead in alternative energy initiatives, and believes “a comprehensive federal approach … is a key and crucial step toward … reducing consumer energy and fuel costs.”

State Sen. Lisa Baker, R-Lehman Township, wasn’t available for comment.

State Consumer Advocate Sonny Popowsky endorsed the resolution, saying “as far as we can go … at the state level” is requiring local utilities to provide lowest-cost service. “The fact is that most of the costs are not regulated at all,” he said.

“I do think that the federal government does need to make sure that the markets are working properly.”

Though the majority of Americans heat with natural gas, its low price in recent years led electricity generators to use it as the fuel source for most of the increased capacity, he said.

But as prices increased in late 2005 after hurricanes Rita and Katrina, “that was like a double whammy for people like us in Pennsylvania because not only did it increase the price of natural gas for heating purposes but it also increased the price of electricity in all the markets that rely on natural gas, which we do,” he said.

While he acknowledged “natural gas is the critical fuel now,” he said capacity increases from all sources are necessary because “we need to get more eggs into our basket.”

“I do think that the federal government does need to make sure that the markets are working properly.”

Sonny Popowsky

State Consumer Advocate

Rory Sweeney, a Times Leader staff writer, may be reached at 970-7418.

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