Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.energy From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: energy Thu, May 7 1992 Date: Thu, 7 May 92 05:31:39 EDT Message-ID: 05-07 0000 DECISIONLINE: Energy USA TODAY Update May 7, 1992 Source: USA TODAY:Gannett National Information Network SENATE HEARS ABOUT PRICE FIXING: Independent gas station operators and officials from major U.S. oil companies lined up on opposite sides Wednesday before a Senate panel probing possible price fixing by large companies. Small and medium-sized businesses are "threatened by abusive wholesale and retail marketing practices of the major oil companies," said Brent Crosby, director of the Service Station Dealers of Arizona. (For more, see special Fixing package below.) OIL PRICES FALL: Oil futures prices fell Wednesday at the New York Mercantile Exchange. Light sweet crude oil for delivery in June settled at $20.77 a barrel, down 3 cents. The market initially moved higher on a report out Tuesday indicating U.S. supplies of gasoline and home heating oil fell last week, but it was unable to sustain the rally and prices eased throughout the day. REFINED PRODUCTS MIXED: Refined petroleum products were mixed Wednesday at the New York Mercantile Exchange. Unleaded gasoline for delivery in June settled at 65.25 cents a gallon, down .32 cent. Home heating oil for delivery in June settled at 57.07 cents a gallon, up .47 cent. Natural gas prices were mostly lower, with contracts for delivery in June settling at $1.496 per 1,000 cubic feet, down 3.3 cents. RUNYON BACKS WATERS TO HEAD TVA: TVA Chairman Marvin Runyon, headed to a new job as postmaster general, says he will support fellow board member John Waters to succeed him as head of the three-member board. Runyon also suggested that TVA executive Bill Willis occupy the third seat on the board, joining Waters and William Kennoy. TVA board members are appointed by the president and have to be confirmed by the Senate. IOWA FARMERS PROMOTE ETHANOL: Iowa farmers are circulating petitions asking the federal government to keep corn-based ethanol in mind as it begins considering regulations for clean-burning motor fuels. The Environmental Protection Agency is looking at methyl tertiary butyl ether (MTBE) and a natural gas compound as the additives of choice over ethanol. EPA says ethanol aggravates ozone problems. SAFETY ALERT CONTINUES: A safety alert at the Palo Verde Nuclear Generating Station in Wintersburg, Ariz., was in its third day Wednesday. Operators couldn't figure out what caused monitoring system to fail Monday. No radiation was released. Tuesday, engineers worked to repair lights and chimes that warn operators of potentially dangerous changes in the way the plant is running. RATE HEARINGS IN UTAH SET: Rate hearings will begin Monday on allegations by Utah that Mountain Fuel Supply Co. overcharged natural gas customers $80 million over the past 18 months. The company contests the state's claim that it could buy cheaper gas on the spot market. VALERO ACQUIRES NGL ASSETS: Valero Energy Corp. said Wednesday it has completed the purchase of certain South Texas natural gas liquids assets from Oryx Energy Co. for $83 million. The assets include two natural gas processing plants in Starr and Dimmit counties which can extract a total of over 11,000 barrels per day of NGLs, 450 miles of associated natural gas gathering lines and a 59-mile liquids pipeline. NSP WANTS TO RAISE RATES: Northern States Power Co. has asked North Dakota for a 9.7% residential electricity rate increase for 1993. The increase would boost an average customer's bill $3.79 per month. The utility said the hike was needed to meet increasing costs, especially new power purchases. SPECIAL PACKAGE ON FIXING: SENATOR BACKS INDEPENDENTS: "The oil companies charge less for a gallon of gasoline at the stations they own and operate than the wholesale price they charge to independent service stations," said Sen. Dennis DeConcini, D-Ariz., who chaired the hearing of the Senate Judiciary Subcommittee on Antitrust, Monopolies and Business Rights. "Consumers are being hurt by gasoline prices that are not truly competitive." AMOCO EXEC CITES OTHER FORCES: Amoco Oil Co. marketing Vice President Robert Rauscher rebutted DeConcini's statements saying, "independent gasoline marketers are growing." Some dealers have fared less well, Rauscher said, because of the "rise in self-service dispensing of gasoline, competition from other outlets in automobile parts and service, rising costs and stagnant gasoline sales." NUMBERS DON'T ADD UP: Rauscher said that as a whole independent gasoline marketers' numbers are on the rise. But DeConcini cited an Energy Department report showing the number of dealer-operated outlets declined from 91,000 in 1981 to 42,000 in 1990. Crosby cited statistics showing a rise in gas prices. Rauscher contradicted that with studies showing that gasoline prices had fallen over the past five years. TWO BILLS PENDING IN SENATE: DeConcini has proposed a bill that would prevent oil companies from operating their own gas stations and prohibiting them from requiring independent dealers to buy more than 70% of their monthly supplies from a single company. Sen. Paul Simon, D-Ill., and Sen. Charles Grassley, R-Iowa, have similar bills pending to ensure fair gasoline prices across the country. (End of package.) Energy Editor: William Snoddy. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM