Blunt Reintroduces Bill to Help Lower Price of Gas
WASHINGTON DC, (SLFP.com), May 27, 2007 - House Republican Whip Roy Blunt (Mo.) reintroduced legislation, May 24, that would simplify our nation's increasingly complex gasoline supply, and ultimately lead to lower prices at the pump for American consumers.
"The simpler and more uniform our gasoline supply is, the easier it is to get to market and the cheaper it is for consumers," said Blunt, who has introduced similar legislation the past two Congresses. "This legislation would reduce the number of 'boutique' fuels currently in the system, benefiting consumers by preventing these specialty blends from driving up the price."
The current gasoline supply stock used by U.S. motorists includes "boutique," or specially formulated fuels, which are required by law in certain communities. When supplies are limited, prices tend to rise quickly, substantially, and sometimes with very little prior notice.
Legislation offered by Blunt last Congress, parts of which were included in the Energy Policy Act of 2005, began the process of capping the number of specialty fuel blends, while allowing communities faced with unforeseen shortages a waiver to use conventional gasoline. The bill introduced by Blunt builds on that progress by mandating sharper reductions in the number of specialty fuels, and allowing communities more regulatory flexibility in times of temporary shortage or displacement.
"Getting gas prices back under control will require building new refineries, increasing our domestic supply, and simplifying the types of fuel available for purchase," added Blunt. "This bill will put us on a path toward accomplishing one of those goals, and as the summer driving season gets into full swing, I will call on my colleagues to help us accomplish the rest."
The legislation, numbered H.R. 2493, attracted the support of 18 original co-sponsors upon its introduction. It will now be sent to the House Energy and Commerce Committee for further consideration.
Tighter Lending Standards Affect April Existing-Home Sales
ST. LOUIS, (SLFP.com), May 27, 2007 - Sales of existing homes declined in April, largely the result of tighter lending standards and a drop in the number of subprime mortgage products, according to the National Association of Realtors(R).
Total existing-home sales - including single-family, townhomes, condominiums and co-ops - fell 2.6 percent to a seasonally adjusted annual rate(1) of 5.99 million units in April from an upwardly revised level of 6.15 million in March, and are 10.7 percent lower than the 6.71 million-unit pace in April 2006.
Lawrence Yun, NAR senior economist, isn't surprised. "We've been anticipating slower home sales because many subprime loan products are no longer available," he said. "In addition, increased scrutiny by lenders is stopping risky mortgage origination, which is good for both consumers and the lending community. Fortunately, a wide availability of conventional mortgage products and the 4.5 million jobs created over the past 24 months will help to stabilize the market going forward."
The national median existing-home price(2) for all housing types was $220,900 in April, down 0.8 percent from April 2006 when the median was $222,600. The median is a typical market price where half of the homes sold for more and half sold for less, but there is a downward skew in the current national comparison because sales have shifted away from many high-cost areas during the last year.
NAR President Pat V. Combs, from Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt, said historically low mortgage interest rates continue to support the housing market. "Long-term financing remains favorable, but interest rates are rising," she said. "Although some buyers have a wait-and-see attitude regarding home prices, they should consider that rising interest rates later this year could offset a lower sales price when you get down to the monthly payments.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.18 percent in April, up from 6.16 percent in March; the rate was 6.51 percent in April 2006. This week, Freddie Mac reported the fixed rate jumped to 6.37 percent.
Total housing inventory rose 10.4 percent at the end of April to 4.20 million existing homes available for sale, which represents a 8.4-month supply at the current sales pace, up from a 7.4-month supply in March.
Single-family home sales declined 2.4 percent to a seasonally adjusted annual rate of 5.22 million in April from an upwardly revised 5.35 million in March, and are 11.2 percent below the 5.88 million-unit level in April 2006. The median existing single-family home price was $220,500 in April, which is 0.9 percent below a year ago.
Existing condominium and co-op sales fell 3.8 percent to a seasonally adjusted annual rate of 770,000 units in April from a level of 800,000 in March, and are 7.7 percent lower than the 834,000-unit pace in March 2006.
The median existing condo price(3) was $223,700 in April, up 1.0 percent from a year earlier.
Regionally, existing-home sales in the Midwest eased by 0.7 percent in April to a level of 1.38 million, and are 11.5 percent below a year ago. The median price in the Midwest was $166,600, which rose 1.9 percent from April 2006.
Rate Increase Awarded to Ameren Corporation Unwarranted Says Nixon
JEFFERSON CITY, (SLFP.com), May 27, 2007 - the $45 million rate increase awarded to St. Louis utility Ameren Corporation by the Missouri Public Service Commission (PSC) is groundless and would be a needless drain on ratepayers. Nixon's office plans to file an appeal of the PSC order, which was passed May 22.
The ruling would mean electric rates for an average residential customer will increase by about $2.33 a month. With this increase, a residential customer using approximately 1,000 kilowatthours of electricity monthly will still be paying about $7 less a month than in December 1987-when the last electric rate increase for AmerenUE took effect.
"Missouri's families should have received the rate cut that my office requested of the PSC," Nixon said. "We will appeal this decision to keep fighting for more affordability and accountability."
After Ameren filed its initial rate increase of $360 million, Nixon's office conducted an extensive audit of the company's books and records to determine the accuracy of its claims that increased costs necessitated such a massive rate increase. The audit revealed a number of areas where Ameren made omissions, improper accounting proposals or overstated costs in the company's request for the rate increase, which would have been a state record. Though Ameren received an increase for far less than it requested, Nixon says it is still unacceptable to consumers.
"We have completed an exhaustive examination of Ameren's books, with the clear conclusion that the company is not entitled to any rate increase," Nixon said. "They are overcharging for services that would make their shareholders happy while socking it to Missouri's taxpayers."
Nixon's office will file a motion for rehearing of the decision with the PSC before the operation of law date in the case. By law, the PSC then has 30 days to rule on the Attorney General's motion.
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