ERMUSR MISC ISSUES 07-06-2004 - Laserfiche WebLink

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POWER The risk of a big power blackout in your area this summer? SUPPLY Moderate but rising. Power producers will have a difficult time meeting demand in U.S. cities, especially when temperatures sizzle. Facing the most strain: The Northeast, Midwest, Texas and Calif. But don't feel smug if you live elsewhere. . .outages can happen anywhere. The national power grid is still shaky. Improvements promised after last August's massive blackout in the Northeast, Midwest and parts of Canada haven't been made yet. Shoring up the grid will take years. And rising costs for utilities won't help. Coal and other fuels are pricier, forcing some utilities to scrimp, limiting their output. That'll drive up prices for users by about 5% over last summer. THE Borrowing by businesses is poised to accelerate soon as firms ECONOMY raise funds to buy new equipment and rebuild their inventories. Business investment is likely to gain 10% this year and 9% in 2005. Corporate bonds will experience a revival after a lengthy pause triggered by higher interest rates that ended a debt-refinancing wave. Most companies still regard debt as an efficient way to raise capital. Top-rated corporate bonds will yield 6.5% on average by year end and probably increase to about 7.5% by the end of 2005, from 5.8% now. Bank lending will pick up in the second half after a 6% drop in loan volume in the first quarter and a 7% decline last year. But heavy competition among banks will keep a lid on rates. SECURITY Identity theft by employees is a growing headache for managers. Inside jobs make up over HALF of all ID thefts, a study shows. Companies found negligent in employee theft of consumers' personal data can be held liable for damages, so it's critical to have safeguards. Outside hacker attacks are also on the rise. ILL-GOTTEN GAINS More than 80% of executives surveyed this year Where Stolen IDs Are Used: reported that their IT systems were compromised si last year. That's double the number in 2002. Phone/<Utd,ty ; Credit Card <Ghar9es Char yes New technical solutions offer more protection. For small firms, OmniTrust Security Systems offers software that lets workers input info, lef but blocks them from saving or e-mailing it. other Vericept has developed a monitoring system Benefits/ that logs any suspicious employee activity. Govt.Documents soe.ce:Fre And for larger firms, systems from Authentica, Liquid Machines and SealedMedia can provide broader management fixes. To thwart outside hackers, Microsoft and others will tighten up the default settings on Windows XP and other programs. And by 2007, new PCs will have chips to protect e-commerce transactions. RETIREE Businesses will continue to whittle away at retirees' benefits BENEFITS to cut shortfalls on future pension and health care liabilities. Although pension shortfalls are shrinking as the economy strengthens, they're still a concern for many employers. Topping the list of companies with still-sizable gaps: Ford, GM, Delta Air Lines, Delphi and Visteon. The new edition of Kiplinger's Retirement Planning can help you with sound strategies for your own retirement, whether that's imminent or several years away. The 128-page publication costs just $5.95 plus shipping. Order online at www.kiplinger.com/annuals/retire.html, or call our toll-free number at 888-547-5464 and ask for operator 28. jir Remember,your subscription includes The Kiplinger Letter online