Issaquah's Costco Wholesale Corp. today became the first nationwide gasoline retailer to agree to install gas pumps at its stores in warm weather states that will automatically adjust quantities of gas delivered during hot weather.

Costco's new pumps will compensate consumers for a physical phenomenon that shorts gas customers of energy content during hot weather.

When the temperature of stored gasoline rises, it expands. Gas pumps are typically calibrated to deliver a gallon of gas at 60 degrees Farenheit. When the gas temperature is warmer, those pumps deliver the same quantity of gas, but the energy content of that gasoline is less because the fuel is less dense.

Costco has agreed to install temperature sensing pumps in its stations over the next five years that will automatically compensate for that reduced energy of "hot fuel" by delivering slightly more gas for the same price as at lower temperatures.

Costco's agreement came in settlement of a lawsuit in U.S. District Court in Kansas City, Kan. That suit named as defendants major gasoline retailers and oil companies.

Those oil companies and retailers have strenuously resisted settling the suit.

“This is fantastic news for consumers,” said Judy Dugan, research director of the nonprofit, consumer Watchdog organization.

“Costco is taking the lead in offering drivers gasoline that has the same amount of energy in every gallon, living up to its reputation as a consumer-friendly place to shop.”

Those temperature-sensing pumps won't be installed in Washington under the settlement agreement.

New car sales fell 43.4 percent in Washington during March, while used car sales also dropped though not nearly as steeply.

Cross-Sell, a company that tracks auto sales nationwide, said used car sales through dealers dropped 16.2 percent last month while private party used car sales fell only 3.2 percent

All car sales figures compare March 2009 sales to March 2008 sales.

The less-expensive end of the business suffered less severely with compact and mid-sized cars and small sport-utility vehicles being the best sellers in this state, Cross-Sell figures showed.

Look for a crowd in downtown Tacoma starting tomorrow as the TV show "America's Got Talent" comes to town with its audition circus.

The initial event will be held at the Greater Tacoma Convention & Trade Center (with the finals next week at the Pantages), and center head David Bobo says he doesn't quite know what to expect.

"It could be 1,500, it could be 15,000," he told me earlier today.

One thing business-related: Never one to forego an opportunity, Bobo says the vacated former UPS Store space near the Commerce Street entrance will be open selling concessions to the hordes expected to be waiting outside.

This also sounds like an opportunity for some other entrepreneurs in town. Maybe a chance to boost the Brown & Haley Roca brand? Perhaps sell some Johnny's seasonings? How about a Nalley's Chili cart?

Compared to a gain of $1.4 million in the first quarter of 2008, Tacoma-based Rainier Pacific Financial Group has announced a first-quarter loss this year of $4.6 million.
Where some banks have reported losses due to investments in Fannie Mae and Freddie Mac, or reversals on loans made on construction projects, Rainier Pacific particularly notes an impairment charge of $8.5 million related to investments in “pooled trust preferred collateralized debt obligations” issued by a group of U.S. banks and insurance companies.
Because the value of these investments continue to drop, bank regulators have increased their scrutiny of Rainier Pacific, said company President and CEO Jon Hall on Thursday.
“It doesn’t mean the bank is in dire straits,” he said. “We take regulatory matters very seriously. The regulators are looking at us more closely than they were a year ago, and it’s predominately because of the quality of these securities. The operation of the bank remains stable. Our credit quality remains stable.”
Hall noted the difficulty in assigning a value to the “CDO” investments. “Regulators expect you to get appraisals. It is difficult if it’s depressed. It’s like falling knives.”
The value of the investments has fallen to 26 cents on-the-dollar and are currently appraised at $28.2 million. This is an increase from the end of the fourth quarter in 2008, when the value came in at 14 cents per $1.00, or $14.9 million.
Rainier Pacific has also altered its accounting standards in recognizing new guidance from the Financial Accounting Standards Board, Hall said. That guidance resulted in an increase to the company’s capital level.
• The company reported that total loan originations during the first quarter totaled $53.3 million, compared to $57.5 million for the fourth quarter of 2008.
• At the end of March, Rainier Pacific’s loan portfolio comprised 40.1 percent commercial real estate loans; 23.4 percent multifamily real estate loans; 10.8 percent land development and constructions loans; and the remainder divided among smaller real estate loans, commercial business, home equity and consumer loans.
• The company charged off $7.2 million in loans for the quarter, compared to $914,000 charged off in the fourth quarter. The first quarter figure includes $6.6 million in loans charged off from loans to three residential builders.
• Total non-performing loans fell during the quarter to $25.4 million, or 2.96 percent of total assets, compared to $31.4 million, or 3.7 percent of total assets, at the end of 2008.
• Core deposits for the quarter increased to $268.7 million, compared to $256.7 million on Dec. 31 2008.
By regulatory standards, with a risk-based capital ratio of 7.45 percent, Rainier Pacific is categorized as “under capitalized.” The threshold for a “well capitalized” ratio is 10 percent, and for “adequately capitalized,” 8 percent.
Being under capitalized, the bank has seen that greater regulatory scrutiny – which has led to a search for increased capital and a requirement that Rainier Pacific give prior notice of any changes in leadership and that it not pay certain types of compensation without approval.
Although pleased with the “continued stabilization in the credit quality of Rainier Pacific’s loan portfolio,” Hall said he continues to see a challenge in the investments made in the CDO securities.
Still, he said, his bank, “continues to operate well and profitably at the core.”
He remains hopeful.
“As the banking industry improves, so too will these securities,” he said.

US Airways, the airline that brought its customers $2 on-board sodas, $1 coffee and blankets and pillows charges, has announced yet another inventive revenue-producing fee.

The Tempe, Ariz.,-based carrier today announced it will charge its passengers $5 to accept payment for checked bags at its counters. That's in addition to the $15 each-way charges for the first checked bag and $25 for the second.

Passengers can avoid the extra, extra charge by paying the bag fees online before arriving at the airport. The airline hopes to generate an additional $500 million this year from fees beyond the ticket charges.

The company dropped its soda and coffee charges March 1 because the fees put it at a competitive disadvantage to its rivals.

US Airways' latest fee is also part of an industry-wide attempt to cut costs by charging travelers who use costly services. Most airlines already charge extra for buying tickets by phone or at the airport counters.

In Europe, Ireland's Ryanair, Europe's largest discount airline, is eliminating check-in counters entirely, requiring its customers to check-in from home on their computers or at automated kiosks at the airport.

SeaTac's Alaska Airlines will join the flock of airlines imposing a fee for the first checked bag, the airline announced today.

That announcement came as Alaska revealed a $19.2 million loss for the first quarter. That loss, however, was an improvement over the first quarter of 2008 when the airline lost $37.3 million

The new baggage fee at $15 matches the fee charged by most major airlines with the notable exception of rival Southwest for the first checked bag.

The airline included a guarantee, however, in return for that new fee: passengers will receive 2,500 Alaska miles or $25 off their next Alaska flight if their bags don't appear at the baggage claim within 25 minutes of their plane parking at the gate.

"We're adapting to a marketplace in which customers increasingly want the lowest fare possible, with the option to pay extra for other services," said Alaska Chairman Bill Ayer. "We want to continue matching the lowest fare in the market without being at a revenue disadvantage to our competitors."

Exempt from the bag fees will be MVP and MVP Gold Mileage Plan members, unaccompanied minors, military personnel on active duty and passengers traveling to and from Mexico City or Guadalajara, Mexico. Travelers within the state of Alaska will pay nothing for the first three checked bags.

The new first bag fee will be effective for tickets bought beginning May 1 for flights beginning July 7 or later.

The airline meanwhile decreased fees for the third checked bag from $100 to $50 and kept the second checked bag fee at $25.

The bag charges came against a backdrop of first quarter losses.

Even so, those losses were an improvement over last year's first quarter. That reduction in loss came in part courtesy of lower fuel costs this year and the airline's efforts to refine its schedule.

The global recession has taken a bite of Alaska's traffic, which was down 7.7 percent in the first quarter. But the airline cut capacity more, 9.3 percent, resulting in its aircraft operating closer to capacity, 75.7 percent, up 1.3 percentage points over the same time last year.

Meanwhile at sister regional carrier Horizon Air, first quarter traffic dropped 20.4 percent on a capacity decrease of 16.5 percent. The airline's revenue per available passenger mile decreased by .7 percent while expenses increased 5.8 percent.