CONCORD - Gov. John Lynch today directed state agencies to immediately undertake a comprehensive assessment of the impact higher energy costs will have on the state budget. He also directed agencies to take additional steps to lower their energy use.

"The recent and dramatic increases in energy costs will no doubt impact our state' s finances. That is why I am asking each of you to assess and prepare a report on the impact of increased energy prices on your department's fiscal year 06 budget," Gov. Lynch wrote in a letter to agency heads today.

Gov. Lynch directed agencies to submit the estimates by Friday, September 30, and consider any administrative, service or contract costs that may be affected by increased energy prices, such as:

* Costs for heating buildings
* Costs for operating vehicles and mileage reimbursements
* Direct service costs
* Potential increased program costs
* Potential increased provider costs

Gov. Lynch also asked agencies to report on any potential revenue losses as a result of energy costs.

In July, Gov. Lynch issued an Executive Order directing state agencies to reduce energy use by 10 percent. In light of the recent increases in fuel costs, Gov. Lynch asked agency heads to take additional steps, including:

* Encouraging tele-conferencing to reduce the need for travel
* Encouraging employees to car pool to meetings on state business
* Restricting discretionary travel to the extent possible
* Reducing energy use in state facilities by turning off unused appliances and lights, and lowering the thermostat
* Accelerating your efforts to comply with the Energy Efficiency Executive Order issued in July