Governor Rendell Calls on President Bush to Prevent Profiteering by Oil Companies:Outlines Steps State is Taking to Protect Consumers, Conserve Fuel..
GOVERNOR RENDELL CALLS ON PRESIDENT BUSH TO PREVENT PROFITEERING BY OIL COMPANIES: OUTLINES STEPS STATE IS TAKING TO PROTECT CONSUMERS, CONSERVE FUEL AND ASSIST KATRINA VICTIMS
Governor Edward G. Rendell today joined with the Governor Richard J. Codey of New Jersey; Governor Ruth Ann Minner of Delaware; Governor Jennifer M. Granholm of Michigan; and Governor Jim Doyle of Wisconsin in asking President Bush to make sure that oil companies are not profiting at the expense of Americans during the devastating crisis that has struck the Gulf region and is further increasing gasoline prices.
At a news conference, Governor Rendell discussed the letter to the President and outlined a second set of emergency actions the commonwealth is taking to protect consumers, conserve fuel and assist victims of the hurricane in Louisiana, Mississippi and Alabama. Additionally, the Governor listed action the commonwealth is taking to help mitigate the impact of spiraling gasoline prices on school districts as they continue to transport students to and from school.
In the joint letter, the governors call on the president "to move swiftly to cap corporate oil profits and strictly prosecute any violation of federal anti-trust laws - and take all possible actions to protect Americans against profiteering."
"Oil profits in the last year have been astronomical. From April to June Exxon Mobile's net income rose 32 percent to 7.64 billion dollars, Royal Dutch Shell announced 34 percent increase in second quarter profits alone, and the list goes on. Prior to the hurricane, American citizens were paying too much for gasoline, and afterward, we are paying more. The American people deserve better."
The five governors added that, "The full impact of the hurricane is only beginning to be realized. It would be unconscionable to permit any leeway to those who would pocket extra profit while so many Americans are sacrificing abroad and at home. The American people must hear -- from you and the Congressional leadership - that any oil company profiteering will simply not be tolerated."
Governor Rendell has signed a separate letter to retail gasoline dealers directing them to immediately begin retaining fuel terminal price quotes and delivery invoices until further notice in an effort to prevent retailers from engaging in price gouging. The Governor said any retailer with an excessive price margin will be subject to investigation for price gouging and other unfair trade practices. The Governor recognized the efforts that Attorney General Tom Corbett is already taking to prevent price gouging.
"We are taking steps to make sure that Pennsylvania consumers are protected as gas prices continue to rise," Governor Rendell said. "We are making sure that retailers do not gouge Pennsylvania motorists on prices at the pump."
Additionally, Governor Rendell said, "Not only are we sending National Guard troops to assist with the recovery efforts in New Orleans, we are opening our doors here to help those displaced by this disaster recover and rebuild their lives," Governor Rendell said.
For example, the Governor noted that after talking with Kenneth M. Jarin, chairman of the Board of Governors of the Pennsylvania State System of Higher Education (PASSHE) universities "We are opening the doors at our 14 state universities to Pennsylvania students studying at colleges and universities in the New Orleans area. We want to make certain that college and university students can continue their education and continue their lives."
The Governor added that Penn State University is offering emergency financial aid and loans to Penn State students who have homes that have been destroyed by the hurricane or whose family members have lost their jobs. Penn State also is opening its doors to students displaced by college and university closings in New Orleans.
Schools in the commonwealth are beginning to see students from families affected by the storm seeking to enroll their children. Governor Rendell said the Department of Education and Department of Health are informing school districts that these children should be immediately enrolled and placed in schools.
Concerning school districts, the Governor said districts will be able to use an existing commonwealth fuel contract that will guarantee prices on a day-to-day basis. The commonwealth has an existing contract for fuel with numerous vendors across the state and LEAs will be able to piggyback on the contract.
The Governor also said he will ask the General Assembly to pass emergency legislation to increase school district transportation reimbursement.
At the same time, the Governor added, "While Pennsylvania is not facing a gas shortage, we are also taking steps to be efficient users and cost-efficient buyers of gas and fuel."
Governor Rendell has signed an Executive Order instructing all commonwealth agencies, boards and commissions under his jurisdiction to establish and follow a fuel conservation program.
"The devastation caused by Hurricane Katrina has made energy conservation a top priority across the country," Governor Rendell said. "The commonwealth is a significant consumer of gas and fuel for transportation, heating, cooling and other needs. Reducing our consumption will help reduce the overall demand for fuels, and thus help reduce the risk of fuel shortages and alleviate price increases."
Governor Rendell has ordered the head of each commonwealth agency, board and commission to either refine its existing fuel conservation program or establish a new one. The programs will take effect immediately and be in effect for at least the next 30 days. At that time, the situation will be reviewed, the Governor said.
"Depending on what happens with energy use, needs and pricing nationwide in the next month, our commonwealth fuel conservation program may be in effect for an extended period of time," the Governor said.
"As far as energy use and conservation are concerned, the days, weeks and months ahead promise to be challenging ones for our entire country," Governor Rendell said. "I hope and expect that the commonwealth's fuel conservation program will serve as a model of how we can all learn to think and act differently regarding our use of energy."
As part of this order, Governor Rendell has asked the commonwealth's Department of Environmental Protection (DEP) to closely monitor the fuel situation across the country and provide him with a daily status briefing. The Governor has also asked DEP to work with the public and local governments on their own fuel conservation programs.
EDITORS' NOTE: Attached are two letters. The first is from the governors to the president. The second is from Governor Rendell to the retail gas dealers associations, both the Pennsylvania Convenience Store Council and the Pennsylvania Petroleum Marketers and Convenience Store Association.
September 2, 2005
The President
The White House
Washington, DC 20500
Dear Mr. President:
As the nation begins its recovery from the deep and broad devastation caused by Hurricane Katrina, we are aware of the extraordinary challenge of providing the federal resources to care for millions of citizens and assure the rebuilding of an entire region. Our offices have been and will continue to provide assistance to FEMA and the affected Gulf States, as Katrina's impacts are felt in each of our states and throughout the nation.
The full impact of the Hurricane Katrina is only beginning to he realized. It would be unconscionable to permit any leeway to those who would pocket extra profit while so many Americans are sacrificing abroad and at home. The American people must hear from you and the Congressional leadership - that any oil company profiteering will simply not be tolerated.
Oil profits in the last year have been astronomical. From April to June, Exxon-Mobil's net income rose 32% to 7.64 billion dollars, Royal Dutch Shell announced a 34% increase in second quarter profits alone, and the list goes on. Prior to the hurricane, American citizens were paying too much for gasoline, and afterward, we are paying more. The American people deserve better.
As the citizens of our nation band together to assist those in need, oil companies should be our partners as the nation tries to recover, not profit at the expense of the nation. We urge you to move swiftly to cap corporate oil profits and strictly prosecute any violation of federal anti-trust laws - and take all other possible actions to protect Americans against profiteering.
Sincerely,
Edward G. Rendell
Pennsylvania
Richard J. Codey
New Jersey
Ruth Ann Minner
Delaware
Jennifer M. Granholm
Michigan
Jim Doyle
Wisconsin
September 2, 2005
Mr. John Kulik
Executive Vice President
Pennsylvania Petroleum Marketers and Convenience Store Association
P.O. Box 68
Highspire, PA 17034-0068
Dear Mr. Kulik:
I am writing to you because of growing public concern regarding escalating retail gasoline prices in the Commonwealth. The following requirements are being implemented to address this situation in the wake of Hurricane Katrina.
Effective immediately, all retail sellers of gasoline must retain fuel terminal price quotes, delivery invoices and records of retail prices with associated date and time until further notice. These documents are subject to subpoena and audit by state authorities for the purpose of determining if any retailer(s) are engaging in price gouging. Any retailer with an excessive price margin will be subject to possible audit and/or investigation for price gouging or other unfair trade practice.
I ask that you please ensure this communication reaches your membership. Thank you.
Sincerely,
Edward G. Rendell
Governor
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