Here Come Higher Energy Costs

America faces still higher energy costs, either through President Ford's program or his critics' call for a steeper federal gasoline tax--or some compromise between those positions. Congress will tinker and tamper with Ford's energy program in hopes of moderating its inflationary impact. But if, through some legislative miracle, the taxes, tariffs and decontrol measures are enacted as they are now proposed, the average price of crude oil in the U.S. will take a substantial leap from $9 per bbl. to $13. The Federal Energy Administration estimates that the average price of heating oil would rise from the present 38-c- per gal. to a maximum of 48-c-, and a gallon of gasoline could race up from its present price of 52-c- to as high as 63-c-.

Hardest hit by the Ford program would be customers of oil-burning electric utilities. These companies are concentrated on the East Coast and in Southern California and rely almost entirely on imported oil, the price of which has gone up fivefold since October 1973. In 1974 electric bills rose 25% nationally,* and even more for customers of the oil-based plants. Some of those plants will be passing along more of the new increase to consumers than others; estimates of imminent raises range from 5% to 20%.

Southern California Edison, which has a request for a 21% rate increase in the works, would have to increase its rate yet an additional 6% if the Ford program is adopted. The Florida Power Corp. estimates an average monthly increase of $5 for residential customers, many of whom are retirees living on relatively fixed incomes. And New York's Con Edison faces the unpleasant prospect of translating a $200 million extra oil-bill burden into a 7.5% rate increase for its customers--who are already paying the company 42% more a month than a year ago.

* For a six-room house, the typical monthly electric bill is $42.48 in New York City, $18.89 in Chicago, $17.70 in San Diego, and $14.63 in Atlanta.

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