As fuel prices spiraled to new heights this year, the trucking company that Michael Bruns launched and nurtured into one of the nation's leading intermodal carriers became a diesel-powered symbol of the Memphis area's sensitivity to energy issues.
Total expenses at Comtrak Logistics Inc. shot up 30 percent. For the first time since the company began as a three-truck operation in 1983, fuel costs outstripped labor expenses at the 1,400-employee firm.
"I think you're always prepared for the next round of price increases, but when they continually come, week after week, I don't think anyone can be ready for them," said Bruns, Comtrak's president.
With the presidential race winding down , energy policy has emerged as a major point of contention between the Republican nominee, Sen. John McCain, and Democrat Sen. Barack Obama. Each has offered differing plans to attack high fuel costs, wean America from foreign oil, address climate change and develop alternative energy sources.
McCain emphasizes increased domestic production of oil and gas by lifting a moratorium on drilling into the outer continental shelf, while also pushing incentives for more efficient and alternative- fuel vehicles.
Obama favors giving citizens relief from high pump prices with rebates funded by oil companies' record profits and, as a longer- term measure, making investments in clean energy that he believes could generate 5 million jobs.
Few cities have as great a stake in the debate as Memphis - a transportation and distribution hub that's home to the world's largest-volume cargo airport, numerous trucking and barge operations and is served by five Class 1 railroads. It's also the site of the nation's largest manufacturer of solar-energy panels.
Like Comtrak, many firms bore strains as fuel prices soared earlier this year. At the city's largest private employer, FedEx, fuel costs were partially responsible for the first quarterly loss in 11 years.
The way Bruns sees it, both candidates have advanced thoughtful energy plans, but he isn't sure either appreciates the extent to which fuel costs are intertwined with the troubles of the economy.
"I think what is needed is an understanding of the effect the fuel expense has on both the ultimate consumer and those purchasing the fuel," Bruns said. "There's no question we're paying more for a loaf of bread because of what we're charging for fuel."
Both McCain and Obama support measures to crack down on excessive oil speculation, which they say has contributed to high fuel prices. They also offer plans to stimulate greater use of domestic energy supplies.
They urge clean coal development, initiatives encouraging zero- emissions and plug-in vehicles, and improving the nation's electrical grid.
On the subject of climate change, both favor cap-and-trade programs to reduce carbon emissions but differ on nuclear energy, with McCain calling for a more aggressive expansion of reactors.
Stephen A. Smith, executive director of the Knoxville-based Southern Alliance for Clean Energy, said the candidates' plans have major implications for the Mid-South, especially with regard to the Tennessee Valley Authority's nuclear program and area crops used in biofuels.
Just last week, both McCain and Obama voted in favor of the Senate version of a bill containing $18 billion for alternative energy and energy-efficiency measures.
The legislation should benefit the Sharp Manufacturing Co. of America plant in Memphis - the leading producer of solar panels in the U.S.
Ron Kenedi, vice president of Sharp's solar energy solutions group, said the measure will "help the solar industry flourish to its fullest potential." Approximately 230 of the Memphis plant's workforce of 600 are involved in solar production, said T.C. Jones, vice president of human resources. With the expanded credits in the new legislation, that number could grow.
- Tom Charlier: 529-2572
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Highlights of McCain's energy plan
Expand domestic production by lifting the federal moratorium on drilling in the outer continental shelf and promoting increased use of domestic natural gas.
Create a permanent 10 percent tax credit for research and development expenditures by companies.
Eliminate tariffs and "special-interest" subsidies that focus exclusively on corn-based ethanol and let market-based solutions meet the nation's energy needs.
Invest in lower-emission and alternative energy sources, including a commitment of $2 billion annually to advance "clean coal" technology and establishment of a goal to build 45 nuclear power plants by 2030.
Highlights of Obama's energy plan
Provide relief from high pump prices through an emergency energy rebate - $500 for individuals, $1,000 for married couples - funded from oil companies' windfall profits and by releasing oil from the strategic petroleum reserve.
Invest $150 billion over 10 years in clean-energy technology, which could create 5 million jobs.
Employ "use-it-or-lose-it" approach to existing leases to stimulate production on land and offshore areas that energy companies have leased but not drilled on.
Diversify the nation's energy mix by requiring 10 percent of the nation's electricity to come from renewable sources by 2012.
