Tag: hikes

  • Kathy Hochul does apparent about-face on natural gas as NYC utility signals major rate hikes

    Kathy Hochul does apparent about-face on natural gas as NYC utility signals major rate hikes

    New York Gov. Kathy Hochul has approved permits to expand capacity on a major bi-state pipeline despite years of pushing green policies like bans on natural gas use in new construction.

    The Hochul administration signed off on permits to expand capacity in the Iroquois Pipeline – a crucial 414-mile route from St. Lawrence County — near the border with Cornwall, Ontario, – running down the Adirondacks, through western Connecticut, under Long Island Sound and forking toward Commack, Long Island, or Hunts Point, Bronx.

    That move comes as the state Department of Environmental Conservation admitted the approvals are “inconsistent with” statewide greenhouse gas emissions limits imposed in recent years, according to the New York Post.

    Hochul said this week that just as she is trying to institute $500 “inflation refunds” for middle-to-low income families, that money is going “right out the door” to Consolidated Edison (ConED). 

    REPUBLICANS RIP HOCHUL’S INFLATION REFUNDS: BRIBE TO MAKE NYERS LIKE HER

    ConEd, the main utility provider in New York City and Long Island, is planning to implement 11.5% increases in electric rates and 13% increases in gas rates – amounting to about $500 per year – unless the New York Public Service Commission (PSC) steps in, according to FOX-5.

    The PSC is already under pressure from Hochul to audit the salaries of ConED executives amid chatter about the rate hikes. Hochul’s actions come after years of crackdowns on fossil fuel production and consumption by New York Democrats.

    In 2019, then-Gov. Andrew Cuomo signed the Climate Leadership & Community Protection Act from then-Sen. Todd Kaminsky, D-Long Beach, which moved the state away from fossil fuels and established a net-zero goal by 2040.

    Two years later, the state shuttered the massive Indian Point nuclear energy production facility on the Hudson River opposite Haverstraw.

    Cuomo said at the time that he had been concerned for years about the safety of the plant. “It does not belong on the Hudson River and in close proximity to the most densely populated area in the country… This is a victory for the health and safety of New Yorkers, and moves us a big step closer to reaching our aggressive clean energy goals.”

    Albany Democrats, led by Hochul, have since banned furnaces and gas heating in new construction.

    The governor also announced a “cap and invest” program to force Big Oil to invest in green energy by paying for emissions. According to the Post, a report from the PSC also indicated ConED and fellow utility National Grid were also “barely able to provide adequate [energy] supply” during a recent Arctic storm that brought temperatures near 0 degrees Fahrenheit to the Empire State.

    HOCHUL’S CHRISTMASTIME BOAST OF SAFER SUBWAYS CAME AMID STRING OF VIOLENT ATTACKS

    The sun sets on the Empire State Building, One Vanderbilt and the Chrysler Building in New York City on March 14, 2021. (Photo by Gary Hershorn/Getty Images)

    As for Hochul’s efforts to audit ConED, Republicans agreed the rate hikes are and have been outrageous, but that particular move would not help.

    “Natural gas is a proven, reliable source of energy and vital for consumers in the Northeast,” said State Assembly Minority Leader Will Barclay. “The green dreams of environmental extremists are meaningless if people can’t heat their homes in mid-February. It’s incredible to see radical liberals protest a necessary measure that allows New Yorkers to stay warm in the winter. But reliability, affordability, and common sense have never been priorities of New York’s climate cult.”

    Additionally, the state’s natural-gas-rich Southern Tier – a 200-mile area roughly running from Jamestown to Hancock along the Pennsylvania border – has been affected by a statewide ban on fracking, which state lawmakers representing the area have fought yet-unsuccessfully to undo.

    This, even as communities just a few miles southward in Pennsylvania continue to extract natural gas from the same Marcellus Shale Range on their side of the line.

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    Hochul added to the ban by further prohibiting a new, safer form of fracking using carbon dioxide instead of liquids.

    While former Pennsylvania Gov. Tom Wolf enacted a moratorium on state parkland fracking, there has been no fracking activity to speak of along the NY-17 corridor for many years.

    After then-Gov. David Paterson announced the state’s original fracking moratorium in 2008 – later becoming an outright ban under Cuomo – some Southern Tier villages whose economies depended on energy production considered trying to “secede” to Pennsylvania.

    Fox News Digital reached out to Hochul and ConED for comment but did not receive a response by press time. 

  • Egg surcharge hits diners’ wallets: Experts say consumers should fear menu price hikes more

    Egg surcharge hits diners’ wallets: Experts say consumers should fear menu price hikes more

    Consumers are being hit with temporary surcharges due to the ongoing egg shortage in the U.S. food system. But experts told FOX Business that these surcharges are the lesser of two evils when compared to overall menu price increases. 

    Michelle Korsmo, the CEO of the National Restaurant Association (NAR), said that these surcharges are a temporary measure and can be removed from menus when macroeconomic conditions improve. 

    “When a restaurant operator adds a surcharge to their menu in a situation like this, it’s generally because they are optimistic that it will be resolved quickly and because they want to be transparent with their customers about their rising costs,” Korsmo told FOX Business. 

    For instance, the Waffle House, a Southern breakfast food chain, added a temporary 50 cent-per-egg surcharge to all of its menus on Monday. 

    WAFFLE HOUSE, OTHER COMPANIES ADD EGG SURCHARGE AMID SHORTAGE

    The company blamed the ongoing egg shortage caused by highly pathogenic avian influenza (HPAI) – or bird flu – for the dramatic increase in egg prices, saying that “consumers and restaurants are being forced to make difficult decisions.”  

    While the company didn’t specify when the charge would be removed, it said that it will adjust or remove the surcharge when market conditions allow.

    A menu in a Waffle House restaurant displays a sticker advising customers of a 50 cent price hike per egg “due to the nationwide rise in the cost of eggs,” in Houston, Texas, on Feb. 6, 2025.  (Gianrigo Marletta/AFP via Getty Images / Getty Images)

    Changing the price on a menu will often add to an operator’s costs. It also doesn’t give them the opportunity to have the same transparency with customers about why the price is changing, Korsmo added.

    TRUMP’S PROPOSED TARIFFS COULD DRIVE UP FOOD PRICES, EXPERTS SAY

    “I think that most of the time, what we see with other types of inflation . . . it never really comes back down as low as it was in a pre-inflationary period, which is where we just get this kind of ongoing sense of a tougher economy,” Korsmo said.

    California restaurant

    Customers at a restaurant at the Ferry Building in San Francisco, California, US, on Friday, May 31, 2024. (David Paul Morris/Bloomberg via Getty Images / Getty Images)

    Sylvain Charlebois, professor and senior director of the Agri-Food Analytics Lab, highlighted that surcharges can be adjusted or removed as costs fluctuate, whereas menu price changes are more permanent and noticeable.  

    “Customers tend to react more negatively to visible price hikes than to separate fees, even if the net cost remains the same,” said Charlebois. “While consumers may dislike extra fees, surcharges provide transparency by itemizing specific costs, such as supply chain disruptions, labor expenses or credit card processing fees,” 

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    Forrest Leighton, senior vice president of marketing at customer intelligence platform Chatmeter, told FOX Business that many restaurant customers are questioning the value of higher-priced menu items. 

    Chatmeter helps restaurants analyze customer feedback to inform decisions around menu items, prices, and operations. Its data shows that the number of pricing-related reviews calling restaurants “overpriced” rose more than 40% in 2024, while the number mentioning the word “cheap” dropped over 10%.  

    However, surcharges can provide customers with transparency around why the price is going up, which helps make it more palatable, Leighton said, adding that loyal customers are less likely to walk away from a price increase they deem to be temporary and beyond the brand’s control, which surcharges often are.  

    Diners on the outdoor patio of a restaurant in Atlanta, Georgia, on Monday, Sept. 16, 2024.  (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)

    Max Chodorow, one of the owners of Jean’s in New York City, told FOX Business that he wished he could add a surcharge, but legally, he can’t in the city. 

    “Our costs are constantly growing, and there’s only so much we can raise prices with consumer psychology,” Chodorow said. 

    Chodorow said that a surcharge is easier to implement because people primarily react to sticker shock of the menu price. The only surcharge that restaurants are allowed to apply in New York state is an auto gratuity on parties over a certain size or special events, and it needs to be disclosed to the customer along certain guidelines, according to Chodorow. 

    They are not allowed to do anything with the fee “beyond pass it directly to tipped employees,” Chodorow said. 

  • State Farm asks California to approve rate hikes after wildfires

    State Farm asks California to approve rate hikes after wildfires

    California homeowners, already devastated by last month’s wildfires, could see their insurance rates go up by more than 20% if they’re covered by State Farm.

    California’s largest private insurer, State Farm, is seeking a 22% average rate increase for homeowners. In a letter urging the California Department of Insurance (CDI) to “immediately approve” the request, State Farm said the hikes would help “avert a dire situation.”

    An aerial view of homes which burned in the Eaton Fire on Jan. 19, 2025, in Altadena, California. (Mario Tama/Getty Images / Getty Images)

    CALIFORNIA INSURANCE CRISIS: LIST OF CARRIERS THAT HAVE FLED OR REDUCED COVERAGE IN THE STATE

    The insurer is looking to increase rates by 22% for non-tenant homeowners, 15% for renters and condo owners, and 38% for rental dwellings. In its open letter to the CDI, State Farm says the increased rates would go into effect on May 1, 2025.

    “As of February 1st, State Farm General (Fire only) has received more than 8,700 claims and has already paid more than $1 billion to customers,” the insurer wrote in a press release on its website. “State Farm General will ultimately pay out significantly more, as collectively these fires will be the costliest disasters in the history of State Farm General.”

    PASADENA, CALIFORNIA - JANUARY 7: Homes burn as powerful winds drive the Eaton Fire on January 7, 2025 in Pasadena, California. A powerful Santa Ana wind event has dramatically raised the danger of wind-driven wildfires such as the dangerous and destructive Palisades Fire near Santa Monica. The strong winds also forced President Joe Biden to cancel his plan to travel between Los Angeles and Riverside, California. (Photo by David McNew/Getty Images)

    Homes burn as powerful winds drive the Eaton Fire on Jan. 7, 2025 in Pasadena, California. (David McNew/Getty Images / Getty Images)

    WILL HURRICANES AND WILDFIRES CAUSE INSURANCE PRICES TO RISE NATIONWIDE?

    The insurer added that it must increase current rates to ensure it could pay possible future claims. Additionally, State Farm announced that rates for Californians would be going up because the “risk is greater” in the Golden State.

    “We look forward to working alongside regulators, policymakers and industry leaders on creating a sustainable insurance environment in California – one that balances risk and increased rates, ensures long-term market stability and keeps insurers like State Farm General a vital part of California’s future,” the company said.

    State Farm faced backlash at the height of the wildfires over a March 2024 announcement that it would discontinue coverage of 72,000 home and apartment policies in the summer. In March 2024, the insurer issued a letter to the CDI, saying the depletion of State Farm’s capital was “alarm signaling the grave need for rapid and transformational action.”

    PACIFIC PALISADES, CALIF JANUARY 7, 2024 A firefighting plane makes a drop on the Palisades fire in Pacific Palisades on Tuesday, Jan. 7. The Palisades fire is being pushed by gusting Santa Ana winds that were expected to continue for two more days. (Brian van der Brug / Los Angeles Times via Getty Images)

    A firefighting plane makes a drop on the Palisades fire in Pacific Palisades on Tuesday, Jan. 7, 2025. (Brian van der Brug / Los Angeles Times via Getty Images / Getty Images)

    STATE FARM, OTHER INSURERS SLAMMED FOR DROPPING COVERAGE

    While insurers can and do receive approvals for larger increases — State Farm secured a 20% increase in home and auto premiums in January 2024 and subsequently requested a 30% increase for home policies last summer — the process can be time-consuming and the size of rate hikes approved by the regulator may not be sufficient for insurers to continue offering policies while preserving their financial stability.

    The January 2025 wildfires only highlighted California’s ongoing insurance crisis as several providers had already fled the state, stopped writing new policies or otherwise reduced their risk exposure in the Golden State. This includes Allstate, Nationwide, and Farmers.

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    As of Tuesday, according to Cal Fire, the wildfires burned more than 57,600 acres and destroyed over 16,200 structures.