Sen. John Celona
State Sen. John Celona is running unopposed this November – but not without an issue. That luxury of being unchallenged should allow the North Providence Democrat to step up his campaign to bring attention to an impending crisis he fears could derail what has been a robust economy – a dramatic rise in the cost of heating oil and natural gas.
Since early this spring Celona has called for energy conservation in city and state buildings. He has lobbied at the local level for weatherization and energy efficiency programs, and for other issues such as the dredging of the Port of Providence so that tankers can load and unload more efficiently.
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Celona also supports inventory tax assistance programs to combat the reduction in oil storage facilities in Rhode Island and has encouraged the use of alternative sources of fuel.
Now, the senator is planning to hold an “Emergency Energy Summit,” bringing federal and state officials, business and leaders, truckers, representatives of the oil and natural gas industry, and the general public. Details of the summit have yet to be announced.
Celona’s goal is to establish specific strategic plans so that the rising energy prices that arrived last winter do not return to do the same damage.
“I’ve been a small business owner,” he said. “I’ve seen good times and I’ve seen bad times. I like the good times. I do not want to see people and businesses suffer.”
It frustrates Celona that the campaigns waged during the primary season seemed to focus so closely on issues that historically capture voters’ attention – with no better example than the issue of abortion that marked the Democratic Senate primary. Energy costs may not make for sexy headlines, but Celona sees it as the single most important issue facing Rhode Islanders.
“No one is talking about this,” he said. “This is the issue that is not only going to impact children and seniors, but business ownersIf nothing is done, this winter will be devastating to our citizens – and our economy.”
Leonard Lardaro, an economist at the University of Rhode Island, said he believes that Celona is on the right track – that in fact, Rhode Islanders should be worried.
Lardaro predicted that the next round of statistics released by the state Department of Labor and Training would open some eyes, as unemployment numbers climb for the first time in many months. Lardaro added that while Rhode Island and its neighbors in the Northeast have enjoyed the benefits of a robust national economy, this region “hasn’t exactly been setting the world on fire.”
“The Northeast should be scared,” he said.
In addition to oil, gas and natural gas prices rising, Lardaro expects electricity costs to rise by about 14 percent come winter.
“All of that slows down the economy,” he said.
In an economy that may have already reached its peak. Lardaro, offers this advice to small business owners.
“I don’t think it is going to be one, but you have to almost act like we are going into a recession,” he said. “Just make sure you have defined and redefined your niche, so that if you have to raise prices you can do so without losing market share. You do not want to be a commodity – you do not want to be like everyone else.”
That many businesses will have to raise prices to combat energy costs seems to be a foregone conclusion.
The State Energy Office released a report two weeks ago that had oil prices averaging close to $1.50 per gallon, an increase of .50 cents per gallon compared to the same time last year. Last year, by mid-winter, those costs had risen to at and above $2.00 per gallon.
Matt Guglielmetti, program manager at the State Energy Office, said the watch is on – at least two or three times per week.
“We look closely at pricing,” he said. “We’re going to stay on top of fuel supply. The inventories are down, but they’re saying there should be enough supply.”
But there are factors, said Guglielmetti, that the state and federal government cannot control.
“The weather is out of our hands,” he said. “If we hit a cold spell, the oil may be out there but there could be difficulties in getting it to the terminals.”
It is the things that can be controlled, he said, that homeowners and business owners must not ignore.
“Turn the thermostat down a couple of degrees,” he said. “Get your oil burners tuned up – and weather-strip your windows.”
To Celona, it’s simple. He ran a small business for many years, fixing and selling lawn mowers and other equipment. He knows about tight margins. He knows a few dollars here or there make a big difference to a small business. And he knows that the folks in his neighborhoods can’t dig any deeper – and that North Providence neighborhoods are representative of those throughout the state.
“The people of this state cannot afford another winter that costs them $2 a gallon to heat their homes,” he said. “Everything in this state and country revolves around petroleum and as such, our now robust economy could begin to spiral downward”
Lardaro likes the idea of a campaign to prepare for a possible energy crisis. Better to know what the future may hold.
“It may not kill us, but it is going to hurt,” Lardaro said
