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Credit cards cut off gas purchases  
By IEVA M. AUGSTUMS, Associated Press

CHARLOTTE, N.C. -- So you're at the gas station filling up your vehicle, and without warning the gas pump shuts off. What? The tank isn't full, and you know your credit card isn't over its limit.
  
"Using my Visa card, I commonly hit a limit and I would be standing there scratching my head," Shawn Bloomfield, who pumps premium gas into his SUV, said from his home in Allentown, Pa. "I would always assume it is the gas station setting a limit on how much gas I could purchase. It felt like a ration scenario."

As the price of gasoline continues to rise, rules to prevent credit card fraud at the nation's pumps are confusing consumers who just want a full tank of gas.

Caps on transaction amounts -- or the total dollar amount of gas a customer can pump into their car -- are limiting some drivers of gas-guzzling vehicles.

"When I go to the gas station I now have to use two credit cards just for one tank of gas," said Paul Brisgone of Oxford, Pa. "Kind of defeats the convenience of pay-at-the-pump."

Brisgone, a field operations manager for a telecommunications company, said he alternates between three different credit cards -- two Visa and one MasterCard -- when filling up the 32-gallon tank in his Ford F-150 pickup.

"When I can go 400 miles a day, it inconveniences me if I need a full tank of gas and can't get one," Brisgone said.

Credit card companies say the policies, which aren't new, are designed to ensure that merchants and consumers are protected from fraudulent transactions that could occur at a gas pump.

When a customer uses their credit card at a cardholder-activated terminal, such as a gas pump, the transaction is authorized without knowing the final bill of sale.

Typically, consumers who use their credit card are not liable for any fraudulent purchases, and gas merchants are not liable either.

But credit card companies have established a protective layer by setting caps on how much gas a consumer can pump at any one given time.

That means in the event of any fraud, "the merchant is protected from bearing the cost of the fraudulent transaction," said MasterCard spokeswoman Joanne Trout.

But only up to a certain amount.

For MasterCard customers, it's $75. Visa and Discover users have a $50 pay-at-the-pump limit. Transaction limits vary for corporate card holders and American Express users.

Not all gas stations have to abide by the cap. And there are no limits if a customer goes inside and pays with their credit card at the counter.

The caps went unnoticed when gasoline prices were low.

"We get more calls, questions, when gas prices increase," said Visa spokeswoman Rhonda Bentz.

The average price of regular unleaded gasoline increased from $1.50 a gallon at the start of the decade to $2.28 a gallon in 2005, according to the American Automobile Association.

Today, gasoline prices are topping $3 a gallon.

"Yes, it's an inconvenience," said Bloomfield, who often reaches his $50 limit when filling up his Nissan Pathfinder. "I guess you could say it's a necessary inconvenience for more secure transactions."

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"Yes, it's an inconvenience," said Bloomfield, who often reaches his $50 limit when filling up his Nissan Pathfinder. "I guess you could say it's a necessary inconvenience for more secure transactions."

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Credit ceilings curb pay-at-pump sales
Irate motorists find $50 won't fill gas tank, but triggers limits on cards  
  
By ALAN WECHSLER, Business writer
First published: Thursday, June 21, 2007

ALBANY -- Jim Boyle of Delmar was first aware of the problem when he tried to fill up his Toyota Highlander and a gas can for his lawn mower. The Hess pump stopped at $50 and wouldn't give him more fuel.
  
The Hess clerk blamed his credit card, Discover. Discover later told him it was the gas station that had put the limits in place.

Turns out they both were right.

For years, credit card companies have limited the amount they are liable for when fuel customers use pay-at-the-pump options to fill up. That means if someone uses a stolen credit card to buy $75 worth of fuel at the pump, Discover will be responsible only for the first $50. (This is not true, however, for a credit-card purchase made at the register).

Until recently, this wasn't much of an issue. But with gas costing more than $3 a gallon, it's now easy for customers to reach $50. And with rising credit card thefts, gas stations have responded by limiting how much gas you can put on the card during a fill-up.

And some drivers aren't happy about it.

"We have people coming in every day, red-faced, angry," said Mac Brownson, owner of a Mobil station on Central Avenue in Albany that has such limits.

Brownson, who also is president of the Gasoline and Repair Shop Association of New York Inc., said the decisions are made at the Exxon Mobil corporate office. The corporate office then directs the company that handles the processing of credit cards to limit the pump purchases.

Because stolen credit cards were used in the past year at his station, Brownson said his processor has required that pay-at-the-pump users also type in their ZIP code. That outraged even more customers -- some thought their buying habits were being monitored, others had a company credit card and didn't know the ZIP.

After Brownson complained to the processor, the ZIP code requirement was discontinued. Now, he tells his employees to watch out for customers who might be trying to use a stolen credit card to sell gas to other customers for cash. He said that has happened twice in two weeks.

Not every station has seen the credit card limits. Todd Clemmer, manager of the Mobil station on Wolf Road in Colonie, said he has rarely had a problem with fraudulent purchases.

But Donna Angus, manager at the Hess station on Route 9 in Latham, said customers often complain about it there. "They get very angry," she said. "They think I'm stopping them from pumping gas."

According to published reports, credit card fraud limits vary. For MasterCard, it's $75; for Visa and Discover, it's $50. Corporate rates are higher, and truck drivers can get waivers.

Mike Johnson, who was filling up his SUV in Colonie on Wednesday, said he has never experienced the pay-at-the-pump limit, but some of his relatives have.

"Everybody gets bothered by it," he said. "It's irritating. They're putting a stipulation on how much gas you can get."

Boyle, the Delmar buyer with the gas can, found a way to solve his problem. The retired information technology manager simply reset the machine and swiped his card a second time.

"It didn't take a rocket scientist," he said. Wechsler can be reached at 454-5469 or by e-mail at awechsler@timesunion.com.

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Brownson, who also is president of the Gasoline and Repair Shop Association of New York Inc., said the decisions are made at the Exxon Mobil corporate office. The corporate office then directs the company that handles the processing of credit cards to limit the pump purchases.

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Refineries not running at full tilt

By Barbara Hagenbaugh, USA TODAY
WASHINGTON — U.S. refiners are producing far less gasoline than they are capable of making because of planned and unplanned maintenance.
That has led to a greater reliance on imports and has made U.S. gasoline supplies vulnerable to further disruptions, such as hurricanes, during the busy summer driving season.

U.S. refineries churned out 87.6% of the gasoline that they were capable of producing last week, down from 89.2% the week before and 5.7 percentage points below a year ago, the government said Wednesday.

The drop came at a time when gasoline production is usually rising to meet summer demand. But aging refineries, continued maintenance following hurricanes in 2005 and greater complexity in refining is forcing refineries to shut down lines.

"U.S. refineries are old," says Bruce Bullock, head of the Maguire Energy Institute at Southern Methodist University. Firms "are having to maintain (refineries) more, and they are having more unplanned outages."

Examples:

•Valero closed part of its refinery near Sunray, Texas, on Monday to fix a mechanical problem.

•BP recently brought back its refinery in Oregon, Ohio, that was partially shut down in mid-April to fix equipment damaged in a power outage.

•Production at an ExxonMobil refinery in Torrance, Calif., was shut down briefly in March after an opossum caused an electrical outage.

Even so, U.S. firms are producing record amounts of gasoline in 2007 because of expansions at existing refineries, American Petroleum Institute economist Ron Planting says.

"We have added the equivalent of a new refinery every year for the last 10 years," he says.

But Rep. Bart Stupak, D-Mich., says he suspects the oil companies are either limiting production or misreporting the numbers to lift the price at the pump.

"All this logic, all these excuses, the math doesn't add up," Stupak says. "The only math that adds up is the adding on of record profits."

Analysts at the Energy Department's Energy Information Administration in a report this month observed that with refinery profit margins high, "Refiners have a strong economic incentive to run their units at the highest possible rates." That suggests, "Unplanned refinery outages and extended maintenance are the key drivers" of the shutdowns, they wrote.

Although gasoline prices have fallen recently, EIA analysts have said they expect prices to increase again later this summer. Wednesday, the U.S. average for regular was $2.998 a gallon, according to AAA.

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A guest presents her gas receipt to Bakers Square President Tim Casey while Village Inn President Jeff Guido serves her pancakes at the company's Denver restaurant. Through July 31, 2007, both restaurant chains are offering "All You Can Eat" pancakes for the price of one gallon of gas, to guests who present a gas receipt. This first-time offer is intended to provide guests some relief from high gas prices during peak summer driving season. (PRNewsFoto/VICORP Restaurants, Inc.)

DENVER, CO UNITED STATES

  


    DENVER, June 21 /PRNewswire/ -- ("First Day of Summer") -- VICORP
Restaurants, Inc., the owners of Village Inn and Bakers Square, today
announced a first-time offer to provide customers some relief from high gas
prices in time for peak summer driving season. Through July 31, 2007,
participating restaurants are offering "All You Can Eat" pancakes for the
price of one gallon of gas, to customers who present a gas receipt. At this
writing, $3.06 is the national average per gallon of self-serve regular
and, while gas prices have dropped in some cities, the latest numbers are
not expected to portend any dramatic price drops. Gas prices are still up
93 cents since the start of 2007.
    (Photo: http://www.newscom.com/cgi-bin/prnh/20070621/AQTH005)
    As part of the special offer, Village Inn and Bakers Square Restaurants
will also be distributing fuel saving tips to customers through a
partnership with http://www.GasBuddy.com, the internet site that monitors
prices at 900-thousand gas stations nationwide, and inviting them to visit
the website to find gas at the best price in their town.
    "We felt it important for Village Inn, as a family-restaurant, to help
take a bite out of rising gas prices for the many of our customers taking
to the highways with their families this season," said Jeff Guido,
President of Village Inn Restaurants. "Bad news at the gas pump is now good
news for pancake-lovers, as we continue to satisfy our guests' hunger for
life's simple pleasures," added Bakers Square President Tim Casey.
    GasBuddy founder and Web entrepreneur Jason Toews applauded the
innovative offer. "We commend Village Inn and Bakers Square for helping to
educate consumers on how to save fuel as summer travel season gets
underway," said Toews.
    The "Top Ten Fuel Saving Tips" from GasBuddy that Village Inn and
Bakers Square Restaurants will be distributing broadly to consumers,
include:
    1.  Avoid High Speeds
    2.  Do Not Accelerate or Brake Hard
    3.  Keep Tires Properly Inflated
    4.  Use A/C Sparingly
    5.  Keep Windows Closed
    6.  Service Vehicle Regularly
    7.  Use Cruise Control
    8.  Avoid Heavy Loads
    9.  Avoid Long Idles
    10. Purchase a Fuel Efficient Vehicle
    The special "All You Can Eat Pancake" offer harkens back to Village
Inn's heritage, which dates back to 1958, of hearty, wholesome breakfasts
that included famous buttermilk pancakes, as well as lunch and dinner
entrees. In the early 80s, Village Inn Pancake House changed its name to
VICORP Restaurants, Inc. and acquired Bakers Square which also offers a
full menu complimented by award-winning pies. Today, the privately-held
VICORP, headquartered in Denver, has 409 restaurants system wide in 25
states and more than 12,000 employees nationwide.
    For details and updates on the "All You Can Eat Pancakes" priced per
gallon offer, customers are invited to stop in at their local restaurants
or to visit http://www.villageinn.com and http://www.bakerssquare.com.

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Gallon of gas dips below $3
AAA Fuel Gauge data shows the nationwide average retail price for a gallon of regular is $2.998.
By Chris Zappone, CNNMoney.com staff writer
June 20 2007: 1:35 PM EDT


NEW YORK (CNNMoney.com) -- The nationwide average retail price for a gallon of regular gasoline fell to $2.998 Wednesday, according to AAA. Tuesday the price stood at $3.002, according to the motorists' association.

The average price hit a record high of $3.23 a gallon at the end of May and has since fallen roughly 8 percent.

Problems with refinery production levels helped drive the cost of gas up around Memorial Day, even uncoupling it from price of oil that it traditionally tracks, according to Geoff Sundstrom, spokesman for AAA.

"We expect gas numbers to decline as refineries get their act together," Sundstrom said.

"Psychologically, we think it's important for the nation," Sundstrom said of the easing prices that had many households concerned about the record highs in May.

"The fact that we've gone back under $3 is a shot in the arm to the economy," he said, who noted that the instant knowledge of crude and gas futures tends to affect pricing even at the retail level.

"It's a telltale sign that the rally has peaked,"said Stephen Schork, principal of the industry newsletter the Schork Report. "The sell off in crude is impressive and expected. The sell off in gasoline is more impressive."

Shork said the EIA numbers showing refineries running at 87.6 percent capacity should have generated a bullish reaction in gas prices.

"We simply have no ability to make gasoline," Shork said. "If you can't get a bull reaction on a report like this odds are we're in for further weakness in gas prices through the summer."

Shares trended lower Wednesday for major oil producers BP Plc (Charts), Chevron (Charts, Fortune 500), ExxonMobil (Charts, Fortune 500) and ConocoPhillips (Charts, Fortune 500).

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Oil tumbles on big jump in inventories
Prices fall after crude, gasoline supplies post surprise increase ahead of summer driving season.
By Keisha Lamothe, CNNMoney.com staff writer
June 20 2007: 4:53 PM EDT


NEW YORK (CNNMoney.com) -- Oil prices sank more than $1 Wednesday after a government report said supplies of crude and gasoline jumped more than Wall Street had expected.

U.S. crude for July delivery sank 91 cents to $68.19 a barrel on the New York Mercantile Exchange. Oil had traded down 21 cents just prior to the report's release.

In its weekly inventory report, the federal government's Energy Information Administration said crude stocks jumped 6.9 million barrels versus analysts' forecasts for only a small change.

"Crude was much higher than expected. That was kind of a shock and the market is trading on the shock right now," said Phil Flynn, a Chicago-based senior market analyst at Alaron Trading.

Gasoline supplies, closely watched in the summer driving season, climbed 1.8 million barrels last week. Analysts were looking for a 1-million-barrel rise, according to Reuters.

Distillates, used to make heating oil and diesel fuel, also rose by 100,000 barrels, but was less than the 800,000-barrel increase analysts expected.

A decline in refinery activity also supported prices. EIA said refineries ran at 87.6 percent capacity, down from last week's 89.6 percent.

The report comes as traders have been focused on whether struggling U.S. refiners could lift supplies of gasoline during the peak summer demand season, while also reviving low heating fuels stocks, Reuters reported.

"We are swimming in crude right now and the real problem is that were are not swimming in enough gasoline," Flynn said. "Refineries are also having a hard time, which means we could see higher gasoline prices."

Energy Secretary Samuel Bodman said he's confident refining activity will jump back above 90 percent shortly. He said emergency federal provisions to spur that, like relaxing environmental standards, were probably not needed.

"There's reason to believe some of these refineries will come back online," said Bodman, speaking to reporters at a renewable energy finance conference in New York. "They have enormous incentive to do it," he said, alluding to the high profits currently enjoyed by the refining industry.  

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Senate votes for 35 mpg fuel average
Higher standard would apply to cars, SUVs, pickups
BY H. JOSEF HEBERT AND KEN THOMAS
The Associated Press

   WASHINGTON — The Senate voted Thursday to require average fuel economy of 35 miles per gallon for new cars, pickup trucks and SUVs by 2020, raising efficiency standards that have not changed significantly for nearly two decades.
   The fuel economy measure was added to a broad energy bill without a roll call vote even as senators were holding a news conference announcing the compromise.
   Republicans earlier blocked Democratic efforts to raise oil taxes by $29 billion and use the money to promote renewable fuels and other clean energy programs.
   Democratic leaders hoped to complete the energy bill Thursday night, but senators close to the auto industry began an effort to derail the entire bill.
   “We will be continuing to oppose it,” said Sen. Carl Levin, D-Mich., “This is not over by any stretch.”
   In the House, the issue is not resolved. A draft energy bill does not include provisions on auto fuel economy, although Rep. Edward Markey, D-Mass., is expected to try to add one when the legislation comes to the floor in coming weeks.
   Rep. John Dingell, D-Mich., a longtime protector of auto industry interests, said his House Energy and Commerce Committee will not address the matter until fall as part of global warming legislation.
   The Senate legislation for the fi rst time would establish a single fuel economy standard applicable to not only cars, but also SUVs and pickups. which currently have to meet less stringent requirement.
   Fuel efficiency requirements would vary for different classes of vehicles based on weight and size. But manufacturers would be required to meet an overall fleetwide average of 35 mpg.
   “It closes the SUV loophole,” declared Sen. Dianne Feinstein, D-Calif., referring to current requirements that allow much less stringent fuel efficiency standards for SUVs and pickup trucks than for cars. “This is a victory for the American public.”
   The compromise, approved without floor debate, was crafted over several days behind closed doors with the aim of heading off attempts by senators sympathetic to the auto industry to press a less stringent proposal.
   President Bush, who was in Alabama visiting a nuclear power plant, said Congress must “be realistic” about the energy legislation. The White House opposes having Congress mandate a specific mileage number for auto fuel economy. Bush believes the Transportation Department should be given increased fl exibility to set a standard.
   Automakers are currently required to meet an average of 27.5 mpg for cars and 22.2 mpg for SUVs and small trucks. The car standard has not changed since 1989, though the truck requirements have been increased slightly by the Bush administration.
   The measure tacked onto the energy bill would require a 35 mpg fleet average — including SUVs and pickup trucks — by 2020, and require that automakers make half of their vehicles capable of running on 85 percent ethanol fuel by 2015.
   The compromise removed a requirement that automakers would have had to meet an additional 4 percent increase per year for 10 years after 2020. The ethanol fl exfuel requirement also would have been three years longer.
   Automakers had strongly opposed the 4 percent requirement, saying it was not achievable and would have required them to make vehicles with a fleet-wide average of 52 mpg by 2030.
   “This compromise is a signifi cant step to keeping this legislation moving forward,” said Sen. Ted Stevens, R-Alaska.
   Senate Majority Leader Harry Reid, D-Nev., said it was important that some version of the mileage increase be included in the broader energy bill, even if the requirements on automakers were eased a bit under the compromise.
   Reid said he hoped to have the bill approved by the end of today.
   The auto fuel economy issue has been one of the thorniest facing lawmakers.
   Auto industry leaders came to Capitol Hill several weeks ago saying they could not meet the kind of fuel use increases being contemplated. Industry executives and car dealers visited Senate offices this week in last-minute lobbying and urged senators to approve a less stringent measure.  

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New-age autos may use less, different fuel
BY H. JOSEF HEBERT The Associated Press

   WASHINGTON — The cars, SUVs and pickups people will buy in the years ahead are likely to use less fuel, and many will rely on ethanol or household electricity instead of gasoline.
   The energy legislation pushed through the Senate this week provides a road map to the future, demanding higher automobile fuel economy, mandating huge increases in ethanol as a motor fuel and supporting more research into building “plug-in” hybrid-electric vehicles.
   While Senate Republicans complained that the bill does nothing to increase domestic oil production, Democrats said that’s because the nation must move energy policy away from its heavy reliance on oil.
   The House is preparing its own version.
   The Senate bill requires automakers to increase fuel economy to 35 miles per gallon, about a 40 percent increase over what cars, SUVs and small trucks are required to achieve now. It would lump all the vehicles under a single regulation, but also give manufacturers flexibility so large SUVs wouldn’t have to meet the same requirements as smaller cars.
   It requires a yearly increase of ethanol production to 36 billion gallons a year by 2022, a sevenfold increase from today. By 2015, half of the new vehicles offered to buyers — as many as 10 million — will have to be capable of running on 85 percent ethanol, biodiesel or some other alternative energy source.
   And for the first time, the president must find ways to cut oil demand by 20 percent of what it is expected to be in 2017 — a target President Bush has embraced — and attain further reductions after that. Gasoline demand is expected to grow 13 percent to 261 billion gallons a year by 2017 without some fuel-saving measures.
   But will auto showrooms provide the same selection of vehicles? Will they be as big, as powerful, as safe?
   “I would expect them to look a lot like they do today, the same size, the same acceleration and the same or even better safety,” says David Friedman, director of the clean vehicles program at the Union of Concerned Scientists.
   He maintains they will have better technology, better engines, more efficient transmissions and stronger aluminum bodies. They’ll cost a little more but use much less gasoline.
   “The goal is to replace fossil fuels with alternative fuels and use conservation,” said Sen. Maria Cantwell, D-Wash., who was involved in the discussions on many of the auto fuel economy and motor fuel issues that ended up in the bill.
   What has changed from a few years ago, she said, is there no longer is “a fear factor that you’re going to be in itty-bitty cars” if the government requires automakers to make more fuel-efficient vehicles.
   In addition to making conventional cars more fuel-efficient, the bill seeks to boost research into use of lithium-ion batteries — like those used in laptop computers and cameras — in vehicles.
   Should ways be found to make them more durable in a vehicle environment, cars could be plugged into an electric socket at home, relying only rarely on gasoline, says Friedman. Some studies have estimated the fuel cost — mostly the cost of electricity and a small amount of gasoline — would be equivalent to about $1 a gallon, said Cantwell.
   Automakers, lobbying hard against the fuel economy provision in the Senate bill, expressed continued concern Friday about their ability to meet the new requirements without changing the mix of cars they will be able to provide in the showrooms of 2020.
   “There’s no way you can get those numbers without a dramatic shift in consumer choice,” insisted Mark LaNeve, General Motors’ vice president of North America sales, service and marketing.
   “We don’t know how it’s attainable.”
   Eric Ridenour, chief operating officer at Chrysler Group, where three of every four vehicles are built on truck frames, said the company will have to decide whether to keep selling some of its larger vehicles.
   “Clearly, the larger family-sized vehicles will be the ones that will be most at risk,” said Ridenour. “The end result will be lighter, smaller vehicles in general.”
   He envisioned generally smaller cars and more of them running on diesel.  

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It would lump all the vehicles under a single regulation, but also give manufacturers flexibility so large SUVs wouldn’t have to meet the same requirements as smaller cars.

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Boycotting gas stations may help cut prices

   The gas boycott of May 15 did not work! So how about trying to boycott a brand of gas? Start with Exxon/Mobil the week of July 1-7. If they’re unable to sell gas, they may have to cut prices. On July 8-14, boycott Citgo; on the July 15-21 week, boycott Sunoco; and on July 22-28, boycott Gulf.
   Gas stations will need to get rid of the gas to keep their allotment. Reducing demand for gas can help. Do it by keeping vehicles tuned, tires properly inflated, not racing from one red light to the next, turning it off at the coffee shop; walking inside a place instead of waiting at the drive-up.
   TAD BONIEWSKI
   Scotia

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Froma Harrop Say no to NOPEC, impose gas tax
Froma Harrop is a nationally syndicated columnist.

   There’s a bill floating around that would let our government sue OPEC members for driving up the price of oil. Surprise, surprise, it passed both houses of Congress. President Bush has vowed to quash the brilliantly named “NOPEC” (the No Oil Producing and Exporting Cartels Act), but the appearance of sticking it in OPEC’s eye has such bipartisan appeal that the measure may enjoy a veto-proof majority.
   This could be an emotionally satisfying way to lash out at $3-a-gallon gasoline, but it’s not energy policy. NOPEC would accomplish nothing except perhaps ignite a trade war. America’s relationship with foreign oil producers is fundamentally sick. Time to move out of the house, once and for all.
   The way to get OPEC out of our lives is to stop buying so much oil, and the way to do that is to force its price up, up, up. At a certain pain point, Americans will choose fuel-efficient cars, houses and appliances — and they will turn to wind, solar and other clean-energy sources. High oil prices make these alternatives more competitive.
   That’s not to dismiss the legal arguments behind NOPEC. The Organization of Petroleum Exporting Countries is indeed a conspiracy to fix prices. U.S. antitrust laws have been used to break up other international cartels for such products as computer chips and vitamins. Why couldn’t we do the same with oil?
   OPEC claims, and American courts have ruled, that its members are acting as sovereign governments (rather than companies) and therefore not subject to our antitrust laws. NOPEC, however, would empower the Justice Department to sue OPEC members under the Sherman Antitrust Act — and seize their U.S. assets to pay for damages.
   One thing Americans don’t need right now is a ratcheting up of international tensions. Furthermore, OPEC members could retaliate by removing their investments from the United States. And they could replace oil sales to the United States with increased business in energy-hungry China and India.
   But Americans truly don’t need more babying by their politicians over the price of gas. Their devotion to low gas prices is responsible for our current humiliating role as supplicant to countries that pay terrorists to attack us. Rather than wait for the sheiks to raise the price, we should be doing it ourselves through gas taxes. That way, we could keep the extra revenues while providing the incentives to unhook ourselves from foreign oil.
   This is hardly a new idea. The third party presidential candidate H. Ross Perot proposed a 50-cent-a-gallon tax way back in 1992. Last fall, N. Gregory Mankiw, former chairman of Bush’s Council of Economic Advisers, called for a $1-a-gallon hike in gas taxes for reasons enumerated.
   The new revenue could be used for health care, cutting the national debt or whatever. Actually, the government could throw the money into the Potomac, and the tax would still make sense because it would push Americans to use less gas and develop other energy sources. It could even end the need to raise mileage standards in vehicles. The higher cost of filling up would automatically create a bigger market for fuel-efficient cars.
   In the past, when oil prices approached levels that would encourage conservation and a move to alternatives, the Saudis would ramp up production to lower the cost and thus keep us addicted. And so why does Congress now want to do this for them?
   OPEC is not our friend or partner, and so let’s end this bad marriage. Trying to make it behave more to our short-term liking hurts America’s long-term interests. We need a divorce, and only an intelligent energy policy will get it rolling.  

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Drivers set gas
consumption record
   WASHINGTON — Record-high prices for gasoline this year haven’t dampened U.S. drivers’ demand for fuel, an industry trade group said Wednesday.
   Drivers consumed a record 9.2 million barrels, or 388 million gallons, of gasoline on average every day during the first half of the year, up 1.5 percent from last year’s levels, the American Petroleum Institute said in its midyear review of fuel statistics.
   While daily domestic gasoline production rose 3.4 percent to a first-half high of 8.9 million barrels, that wasn’t enough to meet demand.
   Gasoline imports rose to a record of more than 1.3 million barrels per day in the second quarter after stalling in the first quarter, the trade group said.
   The industry was plagued with a series of unplanned refinery outages this year that have caused gasoline inventories to run below year-ago levels. But the API said capacity expansions at existing refineries helped the industry boost production levels.
   Earlier this week, a draft report by the National Petroleum Council, an industry advisory group to the federal government, said conventional crude oil supplies won’t keep up with growing global demand in the next 25 years.

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ALBANY
Electric cost hike puts NY near top of list
BY JASON SUBIK Gazette Reporter

   New data from the federal government shows that the cost of electricity in New York state increased by 12 percent between March 2006 and March 2007, a rate a little more than twice the national average.
   The Energy Information Administration, which tabulates energy statistics for the U.S. Dept. of Energy, is reporting that the average cost per kilowatt hour in New York has gone from 12.99 cents in March 2006 to 14.54 cents in March 2007, while the national average rose from 8.39 cents per kwh, to 8.77 cents.
   The New York Business Council, a lobbying organization for businesses throughout the state, blames the high cost on lack of in-state electricity generation capacity and an overreliance on natural gas, as opposed to cheaper coal energy.
   “New York state does not have enough generating capacity to sustain a supply of reliable, affordable and secure electricity,” Business Council Communications Director Matthew Maguire said. “We’ve been on the wrong end of this [list] for quite some time.”
   New York’s residential electricity costs were even higher — 16.59 cents per kwh in March, a 5 percent increase from the previous year and 62 percent above the national average. Commercial users paid 14.77 per kwh and industrial users paid the wholesale price of 8.47 cents per kwh.
   The New York Independent System Operator, which manages New York’s deregulated electricity transmission grid, estimated in June that New York should have 16.5 percent reserve electricity capacity this summer, due in part to a peak demand drop from a cool summer.
   The NYISO expects that the total availability of electricity to the bulk electricity grid will be 43,771 megawatts: in-state generation of 39,770 MWs, 2,921 MWs of out-ofstate supply committed to New York and 1,080 MWs of special case resources. The NYISO forecasts summer 2007 peak electricity usage to reach 33,447 MW, almost 500 MW lower than last year due to cooler anticipated weather.
   Officials with the New York State Energy Research and Development Authority estimate that prior to New York’s deregulation of its electricity grid in 1996, the state had about 28 percent reserve capacity. After deregulation, Gov. George Pataki and the state legislature authorized legislation to fast track the siting of power plants throughout the state. That program expired in 2003.
   “There were a number of projects that were approved under the old law that were never built,” NYSERDA President Paul Tonko said.
   NYSERDA estimates that power plants capable of producing 4,000 MWs of additional electricity capacity were approved under the “Article 10” fast track program that have not been constructed.
   Business Council President Kenneth Adams has argued that Gov. Eliot Spitzer should ease carbon dioxide emissions standards and the Republican-led Senate should loosen its stance on more nuclear power in order to facilitate a compromise to reauthorize Article 10.
   “Obviously as we encourage new production that should be in keeping with the environmental goals of the state, so as to produce clean energy — I think they go hand in hand — and the incentives in a reauthorized outcome should encourage that,” Tonko said.
   The states with more expensive power included water-isolated Hawai