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October 27, 2005

Sen. Reed to energy company CEOs: give back some profits

Reed 2 KB.JPG

With both energy prices and energy profits at record highs, Sen. Jack Reed wants energy companies to help low-income households pay their heating bills.

Reed sent a letter today to the chief executive officers of nine large oil companies, asking them to donate 10 percent of their record profits to programs that provide low-income heating assistance.

The letter was sent to Lee R. Raymond, ExxonMobil Corp.; David J. O'Reilly, Chevron Corp; James J. Mulva, ConocoPhillips; John G. Drosdick, Sunoco Inc.; William Greehey, Valero Energy Corp.; Clarence P. Cazalot Jr., Marathon Oil Corp.; John B. Hess, Amerada Hess Corp.; Bruce A. Smith, Tesoro Corp.; and Felix Rodriguez, CITGO Petroleum Corp.

According to a copy of the letter provided by Reed's office, the senator wrote:

Energy companies are earning record profits this quarter, therefore, we urge you to act as good corporate citizens and invest earning profits into programs, such as fuel funds, that will provide energy assistance to low-income Americans.

Rising energy prices threaten to financially overwhelm low-income families and seniors this winter. These households will face impossible choices this winter: to heat or to eat. A study by the RAND Corporation found that low-income households reduced food expenditures by roughly the same amount as their increase in fuel expenditures. The Mortgage Bankers Association expects steep energy costs could increase the number of missed payments and lost homes beginning later this year.

Posted by Tim Barmann at October 27, 2005 10:34 AM

Comments

I love it when someone living off of tax dollars received from CEO's and corporate profits tells business owners to give back money. I have a better idea...each senator and representative cuts his/her staff and overhead by 25%, Congress lays off 25% of its aides, attorneys and flunkies. Then have the Senator tell each union member from his home state to begin a 50% co-pay for their medical, give up longevity (what a joke) pay. Tally up all of that wasted money and give businesses a break.

Posted by: George at October 27, 2005 12:29 PM

Way to go, Reed. I wish all senators had your class. I live in Illinois, but was born and lived mostly in R.I. Though Rhode Islanders love to bash their politicians, I think Rhode Island has some of the best public servants in the country when you reach the higher levels, such as U.S. Congressman, etc. Too bad a Rhode Islander will never be president, because they tend to have the best judgement and humanity amongst their peers.

Posted by: Chris Eidam at October 27, 2005 01:25 PM

HOORAY for you Sen. Reed. Perhaps you can set an example for your fellow senators around the country to do the same to encourage CEO"s to give up some of those hugh profits and help the needy. To HEAT or to EAT really hits you where it hurts. I am a transplanted Rhode Islander in SC and when I read about what you did, I was so impressed. Keep up the good work. Sincerely, PATRICIA ERIKSEN

Posted by: Patricia Eriksen at October 27, 2005 01:49 PM

They should lower the artificially inflated prices period, across the boared. If they weren't price gouging to begin with this wouldn't be an issue!

Posted by: Mike at October 27, 2005 01:49 PM

The problem with energy prices is that we don't have enough supply. With the profits they are making, the energy companies should and will increase both production and refining capacity. Hey, prices are high, they'll make more so they can sell more.

Reed has never worked for a real company - he was a white shoe lawyer for a while - and has no clue how companies run.

If we take away the incentive to produce more as Reed suggests, we will have even greater shortages and even higher prices.

Posted by: alex palazzo at October 27, 2005 03:37 PM

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