Feb. 11, 2001-- Skyrocketing energy prices aren't just putting a pinch on Utah families. They've also caught some of Utah's biggest companies off-guard, and many are scrambling to stay afloat.

A couple of examples: Kennecott Copper is facing tough decisions in coming weeks about how to cut costs.

And one of Southern Utah's biggest employers is threatening to leave the state.

Environment Specialist John Hollenhorst has more.

The rise in utility bills is astronomical in some cases. Utah homeowners have been complaining about their utility bills jumping from say, $100 a month to maybe $140.

Imagine getting a monthly electric bill of nearly $1 million. That actually happened to the WECCO company near Cedar City.

Big companies like Kennecott are getting hit from three directions.

Huge mine trucks the size of small buildings consume massive amounts of deisel fuel. The price per gallon has tripled.

Same with Natural Gas to heat buildings and fuel industrial processes.

And Kennecott's enormous appetite for electricity faces a higher price tag when a new power contract kicks in this fall.

Energy consultant Scott Gutting has been tracking the exploding cost of energy. He says most big industries in Utah face tremendous challenges.

SCOTT GUTTING/ENERGY STRATEGIES, INC.: "THOSE TYPES OF PRICE INCREASES OFTEN CAN'T BE PASSED ON TO THEIR CUSTOMERS. SO IT DOES HURT. IT HURTS A LOT."

Rumors have been making the rounds that Kennecott might have to shut down temporarily. A company spokesman denies it; says that option isn't even being considered. But cutbacks of some sort are coming. Supervisors have been told it's urgent to cut costs. Decisions in coming weeks may include cuts to the payroll. Big industry is being buffeted all over the map.

SCOTT GUTTING/ENERGY STRATEGIES, INC.: "A TYPICAL BUSINESS CUSTOMER IN UTAH, IN THE LAST YEAR, A YEAR AGO JANUARY, WOULD HAVE BEEN SPENDING MAYBE A HUNDRED THOUSAND DOLLARS A MONTH FOR NATURAL GAS. THIS YEAR THEY WOULD HAVE SPENT 300,000 A MONTH."

It's worse than that for the WECCO rocket fuel plant near Cedar City. December electric bill: nearly a million dollars, up 600 percent. A spokesman says with rates like that WECCO can't stay in business.

DAVE MEAD/WECCO SPOKESMAN: "NOT VERY LONG. IT'S A VERY, VERY SERIOUS PROPOSITION AND SOMETHING HAS TO BE DONE VERY QUICKLY."

WECCO wants rate relief from Utah Power or the Public Service Commission... or else.

DAVE MEAD/WECCO SPOKESMAN: "IT'S POSSIBLE THAT WECCO MAY HAVE TO LEAVE THE STATE, WHICH WOULD BE A VERY, VERY SERIOUS SITUATION FOR SOUTHERN UTAH, WHERE THERE ARE 200 HIGH-PAYING JOBS."

WECCO and Utah Power have a disagreement about the terms of their contract. Negotiations are on-going; Utah Power officials say they are hopeful of an amicable agreement.

Meanwhile, there's a bit of good news. Prices began sliding downward in the last month. They may have peaked in December.