Corporate energy managers in New York, New England and theMid-Atlantic overwhelmingly think that rising energy prices willadversely affect the U.S. economy this year and more than halfexpect the rising costs to hurt their businesses, according to asurvey conducted in late January for PSEG Energy Technologies ofEdison, NJ.

Directed at senior managers responsible for buying energy at 200mid-sized ($1 million to $1 billion revenues) companies, the surveyfound 92% were concerned with energy costs and 77% found it”likely” they would face rising prices and energy shortages likeCalifornia. Another 87% believe that rising energy prices wouldadversely affect the national economy this year, and 63% saidenergy prices would affect their company’s growth. As many as 25%also worried that the energy hikes would cause layoffs.

However, unlike the OPEC-driven crisis in the 1970s, today’sbusinesses are taking a “more measured and systematic” approach toenergy efficiency. For instance, 44% of the respondents said theircompanies were taking steps to conserve energy – with 65% of theNew England respondents saying they were reducing energyconsumption.

“The response shows that smart companies aren’t waiting to seeenergy prices rise further before acting,” said William Tougher,president of PSEG’s Tougher Industries in Albany. He said that”clearly, the California situation” was on the minds of manyrespondents.

Energy conservation options noted by respondents included moreefficient heating and air conditioning systems (63% of those takingconservation steps did this) and installing energy efficientlighting (38% taking conservation steps were doing this). Another13% of those conserving energy had commissioned energy audits todetermine their best conservation strategy and some were planningto build upgrades.

Tougher said the survey was commissioned because PSEG, whichprovides energy conservation services, has seen a “fairly dramaticincrease in interest for our services.” The survey polled managersin Virginia, the Delaware Valley, Philadelphia, New Jersey, upstateNew York and southern New England.

Carolyn Davis, Houston

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