Tuesday, August 30, 2005

KATRINA'S CONSEQUENCES FELT IN POLK COUNTY

While Hurricane Katrina did not directly affect Central Florida with winds and rain, she is certainly having an effect in other ways.

The Lakeland Ledger reports this morning that the city-owned electric utility is low on the natrual gas burned in many of it's generators, and that the two natrual gas pipelines into Florida which run from Mobile Bay, Alabama are stingy with supplies. Lakeland Electric has reportedly purchased gas from Texas which should arrive today, but customers are being asked to conserve electricity.

The utility has 11 large volume customers who receive a discount for their willingness to purchase expensive power or to be shut down during power shortages. Those 11 customers received a scare Monday when they were informed that their service would be shut down, but were spared with Lakeland Electric was able to purchase power for them from Florida Power & Light...at nearly four times the normal cost. Those 11 customers will bear the cost of nearly $400 per killowatt hour.

Lakeland Electric is already one of the highest priced utilities in Florida, and that issue is promising to be the centre of the municipal races here this year.

Meanwhile, some people interviewed by the Ledger are predicting higher prices at the gas pump as early as this weekend due to Gulf of Mexico oil drilling being halted as a result of the storm. One person interviewed predicted $3.00 per gallon by this weekend. It may not be quite that significant a hike, but it's coming regardless.

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