ERMU Misc. 11-09-2005 - Laserfiche WebLink

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16BUSINESS Budget for big hikes in 2006 electricity rates. . . 10% on average, COSTS much more in some parts of the country. In New England, Florida, Texas, California and the Upper Midwest, greater reliance on natural gas ' for power generation will push rates up by at least 15%. In fact. . . Some commercial customers will pay up to one-third more for power next year. Electricity rates have lagged the surge in other energy costs in the past year, in part because of states' regulatory requirements. ' But no longer. Electricity buyers will soon feel the heat as utilities pass along the soaring prices they pay for natural gas and coal. ' Have an underfunded pension plan? Consider freezing benefits. It buys time for employers that are up against the wall, especially now that Congress is eyeing a bill to tighten funding rules. When a company opts to terminate its pension plan altogether, ' it must buy annuities for plan participants. . .an expensive proposition. Freezing offers two advantages: It halts the accrual of additional benefit liabilities and allows the company to wait ' until interest rates rise and annuity prices fall before termination. Converting to a cash-balance plan isn't an option for now. A bill to clarify the status of such plans is bottled up in Congress. ' TRAVEL Travelers can expect to find few bargains this holiday season. Airfares, in particular, will jump significantly over last year because of a mix of higher fuel costs and especially high holiday prices. But with fewer flights, seats will sell out faster than last season. Longer term, flights to Europe may be cheaper and more plentiful. The U.S. and European Union are close to reaching an open skies agreement that will allow U.S. and European carriers more access to more airports. ;i1Pr Remember,your subscription includes The Kiplinger Letter online 1