For Immediate Release: September 19, 2001

Contact: Gino DiCaro 916-498-3347

Manufacturers Release 3rd Energy Casualty Report
Deeper Recession and high energy costs
are threatening state’s economic security and job base

Sacramento, CA - The California Manufacturers & Technology Association (CMTA) today released the third edition of its growing Energy Casualty Report.

“I wish I could say that businesses are finding ways to absorb the higher energy costs without any additional production cuts or job losses,” said CMTA President Jack M. Stewart. “But I continue to receive stories from nervous CEO’s and plant managers that they are in trouble.”

The Casualty Report, which details testimonials from California businesses, lists recent employment casualties as a direct result of the CPUC’s rate increase and allocation - including four plant closures, four hiring freezes, 10 production and cite losses and 18 companies implementing layoffs. It also highlights many companies that could potentially scale back operations and/or send jobs out of California if the state fails to relieve this unfair financial burden.

Parter Medical Products in Carson, California is looking at a 400% increase after the Economic Development rate they once received and has been forced to layoff more than 50 employees, losing 40 percent of its workforce and operating on “bare bones”, according to company President Pat Hassanzadah.

“As the Governor and Legislature negotiate an Edison financial fix, I hope they take into account that California Manufacturers are already paying high prices for power and that they and their 2 million employees can ill afford the negative impact of any additional rate increases,” concluded Stewart.

CMTA will continue to update the Energy Casualty Report. The report can be found on the CMTA website at:

/casualty_report

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