While small increases in energy prices are expected, spikes to last year’s record high levels are unlikely, according to a new survey of treasury and finance professionals conducted Monday at the Association for Financial Professionals (AFP) annual conference.

The survey found that while 12% expect significant increases in the price of electricity, more than half (52%) only expect a “slight” increase over the next year. Similarly, 48% expect only a slight increase in oil prices in the next 12 months. Of even more interest is that 35% of the respondents believe that petroleum prices will remain stable or even drop over the next year.

Despite the record energy price levels seen last year in the wake of Hurricane Katrina, only 14% of the organizations responding to the AFP survey experienced a “significant drop” in profitability resulting from the volatility in energy costs. Further, 70% reported no impact on the demand for their goods or services as energy prices increased.

“With responsibilities ranging from strategic planning to managing the flow of trillions of dollars financial markets each day, AFP members are in a position to monitor the direct impact that increased energy prices have had on their organizations,” said AFP CEO Jim Kaitz. “The survey results show that recent energy price volatility has not had a major impact on business.”

Of the respondents, 22% indicated that their organization raised prices of their goods and services to deal with the elevated prices. More than 20% cited risk management techniques, including hedging and options strategies, while 18% stepped up their use of energy efficient processes and 16% reduced employee travel.

The survey of 735 finance professionals was conducted on Monday at the AFP annual conference in Las Vegas.

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