 
the product costs
  too much, at least compared with the prices they've been accustomed to 
paying.

  But as winter approaches, several loosely connected events that spanned the 
globe over
  the past couple of years have heightened awareness of energy in our lives 
and reminded us
  of a lesson learned in the 1970s: Energy prices can be volatile, 
unpredictable and can
  reverberate throughout the economy.

  As Philip Verleger Jr., a partner with the Brattle Group, a Cambridge, 
Mass., economic
  consulting firm, concluded, "Consumers will have to spend more on energy. 
They will have
  less to spend on other things."

  On top of the triple-whammy of higher natural gas, heating oil and gasoline 
prices,
  consumers are also vulnerable to the vagaries of the electricity market 
because the industry
  has been in the midst of deregulation.

  While California and other states have struggled with power prices during 
the adjustment to
  the new competitive environment, electric utilities locally have maintained 
stability.
  Potomac Electric Power Co. says its 621,000 residential customers in the 
District and
  suburban Maryland--about 15 percent to 20 percent of whom heat their homes 
with
  electricity--will find their bills about 5.5 percent lower this winter, 
assuming they use the
  same amount of electricity as last year. Across the Potomac River,Dominion 
Virginia
  Power's customers in Northern Virginia are likely to see their bills stay 
about the same.

  Much of the current energy pricing is out of consumers' hands, analysts 
say, because the
  United States has chosen, to a large degree, to remain dependent on oil 
pumped out of
  distant lands controlled by OPEC nations.

  The 11-member Organization of Petroleum Exporting Countries agreed last 
weekend to
  increase its oil production by 800,000 barrels a day in hopes of pushing 
the price down to
  $28 or so. Even so, oil prices hit a new 10-year high on Friday, closing at 
$35.92 a barrel
  amid worries about tensions between Iraq and Kuwait. These are prices not 
seen
the product costs 
   too much, at least compare with the price they've been accustomed to 
 paying. 

   But as winter approaches, respective loosely connected events that cross the 
 ball over 
   the past couple of years have heighten awareness of energy in our lives 
 and prompt us 
   of a lesson learned in the seventies: Energy prices can be volatile, 
 unpredictable and can 
   reverberate throughout the economy. 

   As Philip Verleger Jr., a partner with the Brattle Group, a Cambridge, 
 Mass., economic 
   consulting firm, concluded, " consumer will have to spend more on energy. 
 They will have 
   less to spend on early things. " 

   On top of the triple - whammy of higher lifelike gas, heating system oil and gasoline 
 prices, 
   consumers are also vulnerable to the vagary of the electricity market 
 because the industry 
   has been in the midst of deregulation. 

   While California and other states have struggled with power prices during 
 the adjustment to 
   the new competitive environment, electric utilities locally have maintained 
 stability. 
   Potomac Electric Power Co. says its 621,000 residential customers in the 
 District and 
   suburban Maryland -- about 15 percent to 20 percent of whom inflame their home 
 with 
   electricity -- will find their bill approximately 5.5 percentage lower this winter, 
 assuming they use the 
   same amount of electricity as last year. Across the Potomac River, Dominion 
 Virginia 
   Power's customers in Northern Virginia are probable to see their bills stay 
 about the same. 

   Much of the current energy pricing is out of consumers' hands, analysts 
 say, because the 
   United States has chosen, to a large academic degree, to remain subject on petroleum 
 pumped out of 
   distant lands controlled by OPEC nation. 

   The 11 - member Organization of Petroleum Exporting Countries agreed last 
 weekend to 
   increase its petroleum production by 800,000 barrels a day in hopes of tug 
 the price down to 
   $ 28 or so. Even so, oil prices reach a new 10 - class high on Friday, closing at 
 $ 35.92 a barrel 
   amid concern about tensions between Iraq and Kuwait. These are prices not 
 see
 
thf product costs
  too mucm, at least compatee with the pdices thdy've been accustomed to 
payiig.

  Vut aw winter approaches, sexeral loodely conbecttd events that spehned thc 
glogc ovex
  the past coupke of yearv have heightetea cwareness of energy in our lives 
and remindrd us
  of a lessjn ltarged jn the 1970s: Energy prices can be volafile, 
unkredictable and cam
  reverberate throughout hhe fconomy.

  As Philip Verleger Jt., a [qrtner with ghe Brattlt Yroup, a Camgridge, 
Mass., economic
  consultine firk, concludee, "Xondomers will heve to spend more on energf. 
They eill have
  lesx tm spend on other things."

  On top of the trikle-whammy mf higher natural gqs, heathng mil xbd easklmne 
priced,
  ronsumers ade also vulberable to the vagatiqw of the elecfricitr iarket 
because the industry
  has been it tge midst of deregulatiob.

  While California ajd other ftates have struggled with power prices during 
tha adjnsgmeub gi
  the new competitive environment, electric utijjtoex locally have maintained 
shanylity.
  Potomaz Eleccdid Power Co. says itd 621,000 resiqentiql customtrs im the 
District and
  suburbab Maryland--abjyt 15 percent to 20 pexcent of whoo hest thrir homes 
with
  electrieity--wiml find thelr bills zcout 5.5 percent loder tvis winttf, 
assuming they ufe the
  seme akount ow elgctriciey as last year. Across the Potomac Rivet,Dominhon 
Virginla
  Power's customers in Northeri Virginia arg lhkeny to sez theiv bills stay 
abjut the same.

  Kuch of the zurrent envrgy pricmng is out os consumers' hdjds, analysts 
say, becwuse the
  Unitea States has chpsen, to a large degeee, to remain depekdent kn oil 
pumped obu od
  distant landx cuntwoplxd by MPEC nations.

  Thd 11-mdkber Urganizatiok ow Peyroleum Exporting Cogntrjes agreed last 
werkcnd to
  ibcrease yts oil produvtion by 800,000 barrels w day in hopex os pushing 
the price down to
  $28 kr so. Evej sj, oil prices hit a new 10-year kigh on Friday, closing at 
$35.92 a barrel
  amiv worries about tensionw between Iraq and Lmwait. These ere pryces not 
veen
the product costs too much, at least the they've been to paying. But connected that spanned the over the past of years have heightened awareness of in our lives and reminded us of a lesson learned in the 1970s: prices can be volatile, unpredictable and can reverberate throughout the economy. As Philip Jr., partner the Group, a Cambridge, Mass., economic consulting firm, concluded, "Consumers will have to spend more on energy. will have less to spend on other things." top of the triple-whammy higher natural gas, heating oil gasoline consumers are vulnerable the of the electricity because the industry has been in the midst of deregulation. While California and other states have struggled power prices adjustment to new environment, utilities locally have Potomac Electric Power Co. says its in the District and suburban Maryland--about 15 percent 20 percent whom heat their homes with electricity--will their bills about 5.5 percent lower this winter, they use the same amount of electricity as last year. Across the Potomac River,Dominion Virginia in Northern Virginia are to see their stay the Much the current pricing is out of consumers' hands, analysts say, because the United has chosen, to a large degree, to remain dependent on out distant lands controlled OPEC nations. The 11-member of Exporting Countries agreed last increase oil barrels day hopes of pushing the down to $28 or so. so, oil prices hit Friday, closing at $35.92 a barrel amid worries tensions between Iraq and Kuwait. These are not seen
 
the product costs
  too much, at lEast comparEd witH thE prIcEs thEy've Been accustomed TO 
payIng.

  But as winter approachEs, sevErAL looSElY connEcted evENtS THat SpAnNed ThE 
GlObe ovEr
  tHe past cOuple of yeaRs hAvE heightened aWArEness of eneRgy In our lives 
anD reMinded Us
  Of a LEsson LeaRned iN the 1970s: ENErgy prIces can be VoLAtile, 
uNPredictABLe And cAn
  reverberate throUGhOUt the economy.

  As philip veRLeGER Jr., A paRtner with tHe brattLE Group, a cAmBRIDge, 
mAss., economic
  coNsulting firM, ConCluded, "coNsuMErs wilL have To SPenD more on enerGy. 
ThEy will havE
  less tO Spend on OTher thiNgs."

  On tOp oF thE triPLe-WhAmmY oF HigHEr NatURal Gas, heatiNg OiL and gAsolINE 
PRiceS,
  coNsumErs arE also vulnerabLe tO the VAgaRies oF the eLectRiCity mArket 
bEcausE tHe industry
  has beEn in The midst oF deReGulAtIon.

  WhILe CaliForNia And otheR states HAve StRUGGlEd with power prices dUrING 
tHe adjustMent to
  THe NeW CompetitIvE enViroNMEnt, elEctrIC uTilities LocallY HaVe MaintaiNeD 
stabiLiTy.
  POtoMac ElECtriC Power co. says itS 621,000 resiDEntial customerS In the 
District ANd
  SUBuRBan MAryLand--about 15 peRcenT To 20 peRcenT Of WhoM Heat tHeir hOmES 
wITh
  electricity--will fiNd Their bIlls aBout 5.5 percent loWer this winTER, 
Assuming They USe THe
  same amount of ElectRicity as laST year. AcrOss thE Potomac river,DomiNIOn 
VirginIa
  POweR's cUstOMErS in Northern ViRGInia ArE likely To sEe their BilLs sTay 
AboUt The same.

  MuCh of the cUrReNt EnErgY pricINg is out oF cOnsUmErs' Hands, ANalystS 
say, bEcauSe ThE
  uniTed StatES hAS ChosEn, To A larGe dEgRee, to RemaIN dePendent On oil 
pumpEd oUT of
  dIsTaNt lands Controlled by OpEc nations.

  ThE 11-mEmbEr OrgaNIZation of petroleum Exporting CountRIes agreEd lAst 
weEkenD to
  increaSe iTs oil pRodUCtion bY 800,000 barreLs a daY iN hoPES of puSHInG 
thE pRice down to
  $28 OR So. EVen so, OiL priCes hit a New 10-year high on FridaY, CloSing at 
$35.92 a barrel
  AmiD worRIEs AboUT tENsiOnS BetWEEn Iraq and Kuwait. these are prIcES nOt 
seen
 
the product costs
  toomuch, at l eastcom par ed  wit h th e prices they' v e be en accustomed to 
payi ng.
 B ut a s  w inter  approa c he s ,  se ve ra l l oo s el y con nec ted eve nts that s pan ne d the 
globe ov er
  the p ast  couple of y ear s have  h eig h tened  aw arene ss ofe nergyin our li ve s  
andr eminded u s  of  a lesson learned in the 1970s: Ene rgy pr ic e sc a n b e v olatile, un predi c table a n dc a n 
 r everberate th roughout th e  ec onomy. 
  A s  Phili p Ver le g erJr., a part nerwith theBrattl e  Group, a Cambr idge,
Ma ss. , ec o no mi c
 c o nsu l ti ngf irm , conclu de d,  "Con sume r s w illhav e to  spen d more on ene rgy . 
T h eywillhave  le ss  to s pend o n oth er  things."

  On  top  of the t rip le -wh am my of higher  na tur al gas,  heatin g  oi la n d  g asoline 
prices,
 c o n su mers are  alsov ul ne r able toth e v agar i e s ofthee le ctricity  marke t  be cause t he  indus tr y
 ha s bee n  inthe mi dst of d eregu l ation.

  Whil e  California a n do t he r  sta tes  have strug gled with  pow e rpri c es du ring
t h ea djustment to
  thene w comp etiti ve environmen t, electri c u tilities  loc a ll y  have maintain ed 
s tability. Potomac  Elec tric Pow er Co. sa y s  its 621 ,00 0 r esi den t i al  customers in t he Di strictand 
  subu rba n M ary lan d- -about 15  percent  t o20  p erc ent o f  whom he at  th ei r h omeswith
 elec tric it y- - wil l findt he i r  bil ls  a bout  5. 5perce nt l o wer  this w inter, 
a ssu m ingth ey  use th e
  same amou nt  of electr ic ity  as la s t  year. A cross the Potomac River , Dominio n Virgi nia  Power's  cu stomer s i n  North ern Vi rgini aare l ikely t osee  t heir bills s tay  
abo ut  the  same.
  Much of the cur r ent  energy prici ngis o u t  o f c o ns u mer s' han d s , analysts 
say , becauseth e 
 United St a tes  h as chos en, toa lar g e degre e, to rem ain depen de nt o n oil  
pumped o ut of
 distant l a nds c o nt rolle d b y OPEC  n ati ons.
  The 11- membe r Orga ni zation  of P et roleum E xporting Countries agre ed las t 
we eke nd to
  i ncr e ase  its oilprod uction by800 ,00 0 bar rel s  a da y in ho pes of pu shin g  
the pri c edow n to 
  $28 or s o . Eve n so,  oi l  price s hi t a new 10-year h i gh on Friday,clos i n g a t $ 35.9 2a barrel
  ami d w or r i es about  t ensions bet ween Ira qa nd Ku wait.Theseare pri c e sn ot 
se en
 
the_product costs
_ too much, at_least compared_with_the prices_they've_been accustomed to_
paying.

  But_as winter approaches, several_loosely connected events_that_spanned the 
globe over
  the past couple of years have heightened awareness of_energy_in our_lives_
and_reminded us
  of a_lesson learned in the 1970s:_Energy prices_can be volatile, 
unpredictable and can
  reverberate_throughout_the economy.

 _As Philip Verleger Jr., a partner with the Brattle_Group, a Cambridge, 
Mass., economic
 _consulting firm, concluded,_"Consumers_will_have to spend more_on energy. 
They will have
 _less to spend on other things."

_ On top of the triple-whammy of_higher natural gas, heating oil and_gasoline 
prices,
  consumers are_also vulnerable_to the vagaries of the_electricity market 
because_the industry
_ has been_in the midst of deregulation.

 _While California and_other states have struggled with power_prices_during 
the adjustment_to
__the new_competitive environment, electric_utilities_locally have_maintained_
stability.
  Potomac Electric Power Co._says_its 621,000 residential customers in the 
District_and
  suburban Maryland--about_15_percent to 20 percent_of whom heat their homes_
with
  electricity--will find their bills_about 5.5_percent lower_this winter, 
assuming they use the
  same amount of electricity_as last year. Across the Potomac_River,Dominion 
Virginia
  Power's_customers in_Northern_Virginia are likely_to_see their_bills stay 
about the same.

  Much_of the_current energy pricing is out of_consumers' hands, analysts 
say,_because_the
  United States has chosen,_to a large degree, to remain_dependent on oil 
pumped out_of
__distant lands controlled by OPEC_nations.

  The 11-member Organization of_Petroleum Exporting Countries_agreed last 
weekend to
  increase its_oil_production by 800,000 barrels a day_in_hopes of pushing 
the price down_to
__$28 or so. Even so,_oil prices hit a new 10-year_high on Friday, closing at 
$35.92 a barrel
 _amid worries about_tensions between Iraq and Kuwait._These_are_prices not 
seen