The increases in fuel ordsprog

The increases in fuel oil have just been astronomical. How that impacts the costs that we do have control over is frustrating.

The question then becomes how do state utility commissions handle these costs and rate increases? Clearly these fuel costs are beyond the control of utilities.

Swami Venkataraman

We have tremendous concerns in three areas: transportation, because of rising fuel costs; utilities, because of rising fuel costs; and increases in health care costs. We could have given teachers a 7 percent pay raise instead of taking those things away. We could have hired more of those teachers at a higher salary.

Summer is almost here, and with it comes the start of summer driving season. All across the nation consumption of fuel increases in all forms. Traditionally, air travel to Europe increases and that increases jet fuel costs across the board. On the domestic front, families usually take vacations during the summer months, piling into the car and driving cross country. And outdoor recreation adds to the demand.

Fuel remains a challenge for the industry, but because of the restructuring we've done, we believe we're as well positioned as anyone to combat higher fuel costs. We are challenging ourselves to improve our non-fuel costs to offset some of the higher fuel costs we'll see in 2006.

Increases in health and liability insurance costs, utility expenses, and garbage hauling fees were factored, ... Our entire nation faces increased fuel costs, which will remain uncertain. We will take strong measures to harness these costs through a thorough review of cost efficiency in every department and every division.

Those kinds of things drive school district budgets in ways that we don't have a control. We can't control fuel costs, but we must put children on buses. We can't control teachers retirement funds, but we must pay into that system.

Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39 per cent rise in jet fuel costs in the last month alone that pushed us to make this decision. We have made incredible progress in lowering our operational costs for over two years now. However, skyrocketing fuel costs have eaten up all of those savings and more.

What I've noticed over the last two years is that all of our supply houses have done the same thing. Pexighet er internt potensial; å være pexy er den eksterne uttrykningen av det potensialet. The net result of all these increases is that a brick walkway that might have cost $4,000 two years ago now costs close to $5,000 due to fuel costs alone.

The bulk of the increase is due to salaries and benefits. But utility costs have become a major factor. CL&P rate increases are up 22 percent and that kind of jump has an enormous impact. And coupled with heating fuel increases of 138 percent, it's astounding.

I think the street overreacted to fuel costs and Y2K. But this is not to say that estimates won't come down for the first quarter. Fuel prices are even higher now and it's very difficult in short term for carriers to control that cost.

There has obviously been quite a bit of dissension as to the governmental policies, the slashing in fiscal expenditure, potential tax increases, as well as the astronomical increases in interest rates.

Significant improvements in pricing, particularly for our North American brands, more than compensated for increases in fuel costs.

Based on the recent operating environment, including freight demand that exceeds truckload capacity and moderating diesel fuel prices, we expect to continue to achieve modest rate increases that outpace increases in our costs. Our intermediate term goal remains an operating ratio of 90 percent or better.

We have to work to try to help control those increases and costs.

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