April 12, 2001

Energy crisis taking toll on average consumer

SALEM - The energy crisis is putting a clamp on some people's spending supplies. Rates have steadily been increasing all winter and only bigger hikes are expected this summer.

Raymond Quintero will pay $80 for his electric bill this month, and his wallet is feeling the punch.

"It's been going up since January. Seems like our bill's been going up quite a bit actually and I'm kinda concerned," said Quintero.

Other Oregonians share his concern that if power rates keep going up, they will have to sacrifice something, like their summer vacations, to keep the lights on.

"We go on a lot of trips, fishing trips and stuff," explained Quintero. "Probably end up passing those vacations up too."

Quintero gets his power from Salem Electric, which gets all of its power from the BPA, who is warning of rate hikes of 200 percent to 300 percent.

According to Terry Kelly of Salem Electric, threats of skyrocketing energy prices have people thinking about ways to conserve electricity. But conservation alone may not cut it according to the Oregon State economist.

"There's only so much conservation they'll be able to do and they will be faced with a higher energy bill,"said economist Tom Potiowsky.

Potiowsky says a weak economy makes the situation worse.

Oregon's rate of employment growth usually averages 2 percent or more. Right now is one percent or less.

Potiowsky says we're already close to a recession and if industries including aluminum smelters are forced to shut down to conserve energy--that means higher aluminum prices and maybe losing hundreds of jobs.

"I think 2001 is going to be a bumpy year and its not helped at all by this energy situation," said Potiowsky.

http://www.katu.com/news/news_story.asp?ID=9669

-- Martin Thompson (mthom1927@aol.com), April 13, 2001