Federal Reserve Bank Puts a Price Tag on The Energy Crisis (KFWB) --

The Federal Reserve Bank of San Francisco says Californians will pay roughly $1,200 more a year because of higher utility rates and increased prices for gasoline. The bank says about $700 will go towards keeping the lights on and $500 will be spent at the pump every year. Los Angeles economic forecaster Jack Kyser says it will have a rippling effect throughout California's economy. He believes economic growth will slow and unemployment will rise. Kyser is projecting an increase of only 59,000 new jobs this year, compared to 88,000 news jobs in 2000.

Kyser says small businesses will be hit the hardest because consumer purchases are likely to decline while the cost of doing business rises. Aside from higher electric rates, businesses are also facing increasing labor and insurance costs.

-- PHO (owennos@bigfoot.com), May 17, 2001