While Hurricane Katrina devastated Louisiana and Mississippi, its effects are being felt in Wisconsin. We do not know what effects Hurricane Katrina will have on the economy, but those of us who drive have already felt the preliminary shockwaves in our wallets. According to AAA, the average price of gasoline in Madison is roughly $3.02 per gallon, an increase of 56 cents over the previous month and $1.12 over the previous year. Natural gas prices, already expected to increase before the storm, are looking bleak.
The Energy Information Administration of the Department of Energy expects a 52 percent increase in natural gas this year, though Madison Gas and Electric, according to the Sept. 9 issue of The Capital Times, does not believe heating bills in Madison will increase as much as the national average. Adding to the bad news, MGE expects double-digit increases next year to electricity bills.
Needless to say, expect to pay significantly more for the electric and heating bills this winter.
President Bush signed the Energy Policy Act Aug. 8, which according to the president, "…will strengthen our economy, and it will improve our environment and make this country more secure," Mr. Bush announced during a speech in Albuquerque, New Mexico. "The Energy Policy Act of 2005 is going to help every American who drives to work, every family that pays a power bill, and every small business owner hoping to expand."
It is difficult to believe the Energy Bill will truly help average Americans who are paying at the pump. Even Republican Senator Pete Domenici stated, "We won't have any answers if the question is 'what are you going to do tomorrow morning about gasoline prices?'"
The energy bill contains $14.5 billion in tax breaks, 58 percent of which go to fossil fuel producers, according to The Washington Post. Only slightly more than one-third will go to renewable sources. More importantly, there are no minimum requirements for clean power production and no mandatory fuel-economy standards on cars.
With the spike in gas prices, Detroit must take a serious look at fuel-efficient cars. Japanese car manufacturers hold a 96 percent share on the hybrid-vehicle market while U.S. manufacturers have focused on building gas-guzzling SUVs (for example, Consumer Reports rates the 2006 Dodge Durango V6 at 16-21 miles per gallon). The hybrid market has increased 960 percent since 2000, and Japanese manufacturers may win out over already sagging U.S. car companies.
The Bush administration has announced plans to mandate some cleaner standards for U.S. manufacturers. In August, Transportation Secretary Norman Mineta announced all automakers will be required to produce more fuel-efficient vehicles, but this plan only requires 21.3 miles per gallon for large vehicles, an unacceptable standard considering we will probably not see $1.889 per gallon in Madison again.
On a local level, however, there are some choices for alternative fuels. MGE is offering wind power to 3,300 homes for an added 3.33 cents per kilowatt-hour. While the costs will increase electric bills, conservation of our finite supply of fossil fuels may pay off in the long run for the city.
The Energy Policy Act does include tax breaks, such as an up-to $2,000 break for residential solar panels and a $2,500 tax credit for 60,000 hybrid vehicles, but the federal government should take the lead from local governments in terms of real energy conservation and alternative fuels.
Hurricane Katrina has hit all of our pocketbooks and will continue to hit our heat and electric bills this winter. Katrina has exposed how dependent we are on fossil fuels, and the federal government needs to look at reworking energy policy so it actually works for the people and the environment. One hurricane caused a 37 percent increase in gasoline in Madison, and may also cause a 40 percent increase in our heating bills (something those of us on a tight budget cannot afford). What will happen to our local economy if a terrorist attack hits an oil refinery in Saudi Arabia? Due to our current energy policy, the effects could be crippling on our economy.
Jeff Carnes ([email protected]) is a senior majoring in linguistics.
