Energy issue stays in focus amid political reaction to gas price spike

As reports abound of gas prices rocketing upwards overnight in the state, Governor Steve Beshear (D-Lexington) declared a state of emergency this afternoon in an effort to stop price gouging.

"I am outraged by the voracious practices of price gouging we are seeing," said Beshear in a statement. "Today, I have taken an extraordinary step to protect the consumers of the commonwealth from these predators."

Beshear is said to be partnering with Attorney General Jack Conway (D-Louisville) in their effort, which comes in advance of the expected spike in prices following the landfall of Hurricane Ike in Texas.

"We have received an overwhelming influx of reports from across Kentucky regarding gasoline price spikes and even rationing," said Conway. "I felt it was important to get the price gouging protections in place as soon as possible to protect the commonwealth's consumers and businesses."

Following Beshear's order, Conway will be able to investigate and prosecute claims of predatory pricing amid the expected weather emergency in the Gulf Coast.

Beshear and Conway earlier launched an investigation into reports of extraordinarily high gas prices in the Louisville area, when compared to the rest of the state.

Conway told PolitickerKY.com last month that investigation raised some questions as to whether a monopoly on the wholesale side was in place in the area. That investigation has been turned over to federal authorities.

Amid the latest price spikes around the state, other politicians called for consumer relief - some in direct relation to the expected emergency and others not necessarily.

About one hour prior to Beshear's announcement, the campaign of 2nd Congressional District candidate and state Sen. David Boswell (D-Owensboro) released a statement calling on Beshear and Conway to take the same emergency precautions they later did.

"Like many Kentuckians I was alarmed and appalled that gas prices jumped nearly $1 dollar a gallon overnight in many parts of Kentucky," said Boswell in the statement. "I have called upon the Governor to issue an emergency executive order to look into price gouging. I have also asked the Attorney General's office to investigate this matter. It appears to me these so called speculators and big oil companies are using every excuse to take advantage of our citizens."

Earlier, Boswell's opponent in the 2nd District, state Sen. Brett Guthrie (R-Bowling Green), launched his first television ad, blasting Democrats for "doing nothing" about high gas prices and calling for expanded domestic oil drilling and the promotion of alternative energy sources.

Updated, 4:03 pm ET: U.S. Rep. Ed Whitfield (R-Hopkinsville) of the 1st Congressional District added a statement to the response to potential price gouging.

“I am very concerned to hear reports of alleged price gouging taking place in Kentucky as Hurricane Ike threatens oil production in the Gulf Coast. I have worked hard to ensure that consumers are protected against unfair and excessive price spikes and I have supported legislation which has given the Federal Trade Commission (FTC) more authority to investigate alleged price gougers," said Whitfield in a statement.

"My staff and I will be monitoring this situation in the days to come. I will not tolerate price gouging and will take the necessary steps to see that the public is protected, including Federal and State prosecution of those suspected of price gouging,” added Whitfield, who recommended consumers report price gouging to the Department of Energy.