By Brian E. Clark
RISING
Electricity costs
We Energies customers are facing a third increase in electricity prices
this year, after the Public Service Commission approved a higher rate
due to rapidly rising natural gas prices and the soaring price of
diesel fuel used by trains bringing coal from Wyoming.
Rising natural gas costs for the rest of the year are projected to add
$74 million to rates, while diesel surcharges are expected to add $19
million, said utility spokesman Brian Manthey.
In addition, the PSC gave Wisconsin Public Service, a Green Bay
subsidiary of Integrys Energy Group Inc., an increase of $18 million.
This follows a rate increase of nearly $30 million in March.
MIXED
Milwaukee economy
A report by the Metropolitan Milwaukee Association of Commerce shows
eight of 20 May indicators of metro area economic activity registered
improvement from year-ago levels while a dozen fell. The number of
improved indicators recorded for May was unchanged from April levels.
Bret Mayborne, economic research director for the MMAC, said area job
declines steepened in a number of major industry sectors pushing the
overall job decrease to its largest decline in the current employment
downturn.
The report shows that job declines in the metro area continued with
non-farm employment falling for the seventh consecutive month. Four of
ten major industry sectors registered May job gains (vs. one year ago),
while six posted declines. The largest percentage increase was posted
in the educational & health services sector (up 1.8 percent over
year-ago levels). Conversely, a 3.6 percent job decline was posted in
the construction, mining & natural resources sector – the largest
decrease registered.
FALLING
Marshall & Ilsley Corp.
The stock of Marshall & Ilsley Corp., the parent company of M&I
Bank, tumbled to a new 52-week low of $12.50 Monday.
This was the first day of trading after the company announced on
Thursday it expects to report a second- quarter net loss of $1.50 to
$1.60 per share as it absorbs up to $900 million in losses in the
deteriorating housing market.
The company’s 52-week high is $48.37. It has been extremely vulnerable
to the national housing meltdown because it decided to expand in
Arizona and Florida, two markets that have been hardest hit by the
bursting of the housing bubble.
M&I will report 2008 second-quarter financial results on July 16.
The corporation has said it expects to return to profitability in the
third quarter of 2008.
