Return to Transcripts main page

American Morning

Government Investigates Regional Differences in Energy Prices

Aired April 26, 2001 - 10:01   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: One of life's trade-offs, a beautiful view in San Francisco, got to pay those gas prices, though. But these price increases often usher in the travel, the summer travel season, but keep in mind that is still weeks away and the analysts are warning you'd better buckle up for even more bad news. All of which offers the promise of political mileage to be made of all this. So some leaders in Washington are taking a broader look at energy issues and initiatives.

CNN's Jeanne Meserve is in Washington. We say good morning to her now. She's got more for us -- hi, Jeanne.

JEANNE MESERVE, CNN CORRESPONDENT: Good morning, Leon.

You know, consumers are feeling the pinch. Those consumers are voters and so Congress is paying attention. Three committees and two subcommittees are busy here in Washington today trying to get a handle on the causes of the current energy crunch and discover why there are such variants in prices from one area of the country to another.

The Senate Energy and Natural Resources Committee chaired by Republican Frank Murkowski of Alaska has a hearing already underway. It is looking at the infrastructure of the energy system, electric power transmission networks, for instance, and oil refineries. The oil refineries of particular interest right now because of the current spike in gas prices. One explanation for the rise in prices, as the refineries switch over to making summer formula gas designed to meet federal pollution standards, supply weakness but demand does not.

But even the president of the United States is wondering if the current barrage of price increases is justified.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: We don't want price gouging and I think we need to make sure that that doesn't occur. But I haven't changed my opinion about the need for an energy policy in America. We need one. And we need to do two things. We need to increase supply of product and we need to do a better job of conservation.

(END VIDEO CLIP)

MESERVE: Where you live has a bearing on how much you're paying, with some areas of the country significantly worse off than others. "The Oregonian" newspaper reports refinery policies, including redlining, are behind the high price of fuel on the west coast and that drew a response from Senator Barbara Boxer of California.

(BEGIN VIDEO CLIP)

SEN. BARBARA BOXER (D), CALIFORNIA: This is what it looks like in San Francisco. This was yesterday. Today who knows if it's higher. If you're lucky enough to take the lowest grade of gasoline, it's $2.19. This is on Franklin Street in San Francisco yesterday. It's higher elsewhere. If you have to take the special super duper kind, it's $2.39. This is an outrage.

(END VIDEO CLIP)

MESERVE: Don't think for a minute the outrage and the hearings will ease prices immediately. Also coming up on the Hill this afternoon, Senators Schumer and Collins release a report which says if supplies aren't increased and demand reduced, in 10 years consumers will see an increase in their annual energy bill of $2,000 -- Linda, back to you.

LINDA STOUFFER, CNN ANCHOR: A lot of money. Thanks a lot, Jeanne.

Well, meanwhile in the State of California, a power crisis is fueling some federal action. Members of the Federal Energy Regulatory Commission last night ordered price caps to be put in place during critical emergency periods. Now, specifically, the price controls kick in when reserves dip below 7 percent. Now, the measure is intended to prevent severer price hikes this summer when shortages are expected to prompt some rolling blackouts.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com