Fuel pricing update

Staff -- Purchasing, 11/3/2005

• AMR Corp., parent of American Airlines, increased its fuel surcharge on international and domestic freight shipments after the company's fuel costs topped a preset trigger point. The American Airlines Cargo fuel index reached 225.2 in October, surpassing for the second week in a row the company's trigger point of 198. The cargo division raised its surcharge by 5¢ to 55¢/kg on international shipments originating in the U.S. and by 2¢ to 22¢/lb on domestic cargo, effective Oct. 19. The company said it would adjust its surcharge on most shipments originating outside the U.S., as well.
• Reliant Energy has asked the Texas Public Utility Commission for permission to raise the fuel portion of its bills to Houston-area residential and small-business customers. The rising cost of natural gas prompted the request, Reliant said. Based on the market price of natural gas, Reliant's price per kilowatt hour would be about 16¢, compared to the current price of 12.9¢ per kilowatt hour.