Tariff report: Energy costs to rise in New York
ALBANY, N.Y. (NEXSTAR) — State agencies reviewed federal energy tariffs that risk raising New York's utility bills while driving down reliability. Officials from the Department of Public Service, the New York State Energy Research and Development Authority, and the Division of Homeland Security and Emergency Services released a report that looked at costs, supply issues, and energy options in light of President Donald Trump's tariff plans.
On March 10, Gov. Kathy Hochul and Senate Majority Leader Chuck Schumer wrote to DPS, NYSERDA, and DHSES, giving them seven days for an initial analysis on new tariffs set by the White House, followed by a full report. So, in their new report released on Thursday, those agencies examined how a 10% tariff on natural gas, heating oil, propane, diesel, and gasoline, and a potential increase to 25% on electricity could hit wallets.
More Local News
The report—available to read at the bottom of this story—estimated near-term cost hikes based on past import data. For example, the tariffs could raise New Yorkers' electricity costs by anywhere from $42 million to $105 million each year. Heating oil costs could rise by about $57 million a year, diesel by $48 million, gasoline by $26 million, propane by $16 million, and natural gas by $4.4 million.
Despite the large numbers, the agencies said the increases could be relatively modest because New York's own strict policies succeed in slowing down the negative effects. But while state investments in clean energy and transmission projects could soften the blow, more tariffs on other materials used in power projects—like steel and aluminum—would force bills up either way.
NY Senate Republicans propose tax cuts, credits to combat unaffordability
The report found that, while many natural gas providers can switch suppliers, others depend on energy imported from Canada. Liberty Gas—fueling some 15,000 households and businesses in the North Country—and the city of Plattsburgh's 5,400 residents would face major supply issues.
If American tariffs inspire Canada to cut energy shipments to New York, the report said that, in those examples, there's no easy fix. Without alternative pipeline connections to the wider state network, local systems lack the infrastructure, fleet capacity, and personnel necessary to bridge the gap to replace Canadian supply.
Court approves cap on New York legislators' outside income
New York's Energy Affordability Policy aims to cap household energy costs at 6% of income. Ratepayers in New York pay into an earmarked fund for this program, which also uses federal LIHEAP money. This is how the state discounts energy for low-income households, but any rise in energy costs—including from tariffs—would mean that taxpayers have to pay more for those discounts.
The report calls for more transparency so New Yorkers understand what they're paying for and why. Some natural gas suppliers already plan to add a line item to their bills to highlight the impact of federal tariffs. DPS is also creating a public portal online to track the numbers and any extra charges.
New Yorkers float expanded tax credits or voucher programs to address homelessness
In a worst-case service disruption scenario, the costs would balloon further. That's because the state would have to foot the bill for even more mitigation efforts, like warming and cooling centers. So, the report also reviewed state emergency plans, including potential waivers for truck, rail, or water shipments in case fuel delays worsen.
Should Canada retaliate by blocking energy exports—especially during peak hot and cold seasons—New York would need to look elsewhere, and to run local natural gas plants more often. With tariffs sparking so many new direct and indirect costs, the report urged officials to plan for this possibility by examining all backup options and coordinating with other states.
Fiscal Policy Institute warns CDPAP plan could force New Yorkers off of better insurance
Take a look at the report below:
B024B095-0000-C014-8501-51B533D15B9DDownload
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
10 minutes ago
- Newsweek
AOC Scrambles New York City Mayoral Race With Endorsement
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Representative Alexandria Ocasio-Cortez made her endorsement in New York City's mayoral race as more progressive Democrats in the city work to consolidate support against front-running former Governor Andrew Cuomo. Why It Matters Ocasio-Cortez remains popular with younger, more progressive voters in New York City, so her support could convince some of those voters to head to the polls for the June 24 primary. Whoever prevails in the primary would become the favorite to win in November, as the city remains a Democratic stronghold. What To Know The progressive congresswoman announced in The New York Times that she is ranking Assemblyman Zohran Mamdani, who has polled second behind Cuomo and emerged as a favorite among many left-leaning voters, first in the Democratic primary. New York City uses ranked choice voting in their local elections. She said she will be ranking New York City Council Speaker Adrienne Adams second, New York City Comptroller Brad Lander third, former Comptroller Scott Stringer fourth and state Senator Zellnor Myrie fifth in her endorsement, the Times reported. Representative Alexandria Ocasio-Cortez of New York speaks during a rally in Denver on March 21, 2025. Representative Alexandria Ocasio-Cortez of New York speaks during a rally in Denver on March 21, 2025. JASON CONNOLLY/AFP via Getty Images "Assemblymember Mamdani has demonstrated a real ability on the ground to put together a coalition of working-class New Yorkers that is strongest to lead the pack," Ocasio-Cortez told the newspaper. "In the final stretch of the race, we need to get very real about that." Newsweek reached out to the Mamdani and Cuomo campaigns, as well as Ocasio-Cortez's office, for comment via email. Cuomo has established a polling lead over other candidates and is viewed as the leader with less than a month until the primary, as progressives seek to rally behind other candidates to prevent him from becoming the party's nominee because of his more moderate policy positions. A recent Emerson College poll found Cuomo and Mamdani as the top two Democratic candidates. On the first round of voting, 35 percent of respondents said they'd vote for Cuomo, while 23 percent would back Mamdani. By the final round, however, Cuomo had support from 54 percent of respondents, while Mamdani had 46 percent. The poll surveyed 1,000 registered voters from May 23-26 with a margin of error of plus or minus 3 percentage points. Cuomo resigned as governor in 2021 after a report from Attorney General Letitia James' office alleged that he sexually harassed multiple female employees and created a toxic working environment, allegations Cuomo has denied. In May, he accused the Trump administration of "election interference" after The New York Times reported it launched a criminal investigation into whether Cuomo lied to Congress about his handling of the COVID-19 pandemic. Mamdani has engaged more progressive voters with a more left-leaning platform, emphasizing issues like a rent freeze to deal with rising rent and housing in the city and the establishment of a network of city-owned grocery stores intended to combat rising grocery costs for New Yorkers. Ocasio-Cortez's endorsement comes just one day after the Democratic candidates faced off in their first debate, during which each sought to portray themselves as the strongest to lead the city of more than 8 million people. "I am Donald Trump's worst nightmare, as a progressive Muslim immigrant who actually fights for the things that I believe in and the difference between myself and Andrew Cuomo," Mamdani said during the debate. What People Are Saying New York City mayoral candidate and Assemblyman Zohran Mamdani, in a post on X, formerly Twitter: "Alexandria Ocasio-Cortez is a once-in-a-generation leader who has led the fight for working people in Congress. In 2018, she shocked the world and transformed our politics. On June 24, with @AOC's support and this movement behind us, we will do the same." Representative Alexandria Ocasio-Cortez told The New York Times: "Even if the entire left coalesced around any one candidate, an ideological coalition is still insufficient for us to win. We have to have a true working-class coalition." What Happens Next The New York City mayoral primary is set for Tuesday June 24. The winner will face off against a Republican, as well as Mayor Eric Adams, who is seeking reelection as an independent, in November.
Fox News
11 minutes ago
- Fox News
Merz says US in 'strong position' to stop Putin, Trump says 'let them fight for a little while'
German Chancellor Friedrich Merz told President Donald Trump he is in a "strong position" to stop Russia's war in Ukraine, to which the president suggested maybe the world needs to "let them fight for a little while." "America is again in a very strong position to do something on this war and ending this war," Merz said, while also referencing the U.S.'s role in ending World War II on the eve of the anniversary of D-Day, which marked the turn of events that led to the defeat of Nazi Germany. "So let's talk about what we can do jointly, and we are ready to do what we can." Merz called for more pressure to be placed on Russia in coordination with European allies. Trump responded by providing an analogy of two kids fighting, and suggested perhaps it was "too early" to break up the fight between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy. "Sometimes you see two young children fighting like crazy – they hate each other, and they're fighting in a park, and you try and pull them apart, they don't want to be pulled," Trump said. "Sometimes you're better off letting them fight for a while and then pulling them apart." Trump said he gave that analogy to Putin in his call with him on Wednesday and said he told the Kremlin chief "maybe you're going to have to keep fighting and suffering a lot." Reporters asked Merz, who has been an ardent supporter of Ukraine and recently lifted Germany's existing strike bans, if he agrees with Trump that "fighting it out" was the way to proceed. "I think we both agree on this war and how terrible this war is. And we are both looking for ways to stop it very soon," Merz said. "I told the president before we came in that he is the key person in the world who can really do that now by putting pressure on Russia, and we will have this debate later on again, how we can proceed jointly between the Europeans and the Americans. "I think we are all… having the duty to do something on that now, to stop it after three and a half years, which is really terrible," he added, making it clear without directly contradicting the president that he did not agree with Trump. "We are on the side of Ukraine, and we are trying to get them stronger and stronger just to make Putin stop this war. This is our approach," Merz added.
Yahoo
14 minutes ago
- Yahoo
Is Official US Economic Data Getting Less Reliable?
President Donald Trump's federal hiring freeze has forced the Bureau of Labor Statistics to cut back on collecting consumer price information. Economists have raised concerns that key data on inflation and other important measures of the economy will become less accurate because of Trump's policies. Earlier, the Trump administration disbanded expert panels that advised the BLS, raising further concerns about the quality of economic data.A key government agency has cut back on the amount of data it collects, raising concerns among experts about the accuracy of the information used to track inflation, unemployment, and other facets of the Bureau of Labor Statistics said this week it had cut back on the price surveys it uses to determine the Consumer Price Index (CPI). The agency said it cut back sample collection across the country and stopped data collection entirely in Buffalo, New York, Lincoln, Nebraska, and Provo, Utah. "These actions have minimal impact on the overall all-items CPI, but they may increase the volatility of subnational or item-specific indexes," the BLS said in a statement. "BLS makes reductions when current resources can no longer support the collection effort." Any problems with the inflation data could be widely felt across the economy. The inflation rate is closely watched by policymakers at the Federal Reserve who set the nation's monetary policy; by bond traders who determine the price of 10-year treasurys; and by major companies who use the information to make business decisions. Many federal benefits, including SNAP food aid and Social Security payments, are directly tied to the Consumer Price BLS is one of the federal agencies affected by President Donald Trump's freeze on hiring federal employees, which was instituted shortly after he took office. An internal BLS report said staffing shortages were the reason for cutting back data collection, the Wall Street Journal reported Thursday, citing an email the agency sent to economists. Trump has requested further cuts to the agency. His budget proposal would cut the BLS budget by 8% in 2026 from 2025 levels, if approved by Congress. 'The CPI temporarily reduced the number of outlets and quotes it attempted to collect due to a staffing shortage in certain CPI cities,' beginning in April, the email read, according to the Journal. 'These procedures will be kept in place until the hiring freeze is lifted, and additional staff can be hired and trained.'The cutbacks forced the BLS to use less hard data and more guesswork to produce the inflation data for April, the Journal reported. To measure the inflation rate, the BLS collects about 100,000 prices each month, with employees across the country visiting stores, making phone calls, or going online to check prices. About two-thirds of the data in the survey comes from in-person visits. Experts look to the BLS's massive surveys as the "gold standard" of economic addition to cutting back on its consumer price survey, the BLS said it will stop monitoring wholesale prices in 34 different industries including cookware, greeting cards, toys, and power tools. That data is used to create the Producer Price cutbacks raised alarms about the reliability of BLS data, according to a report by Bloomberg.'The reduced number of price quotes will likely reduce the reliability of the CPI as a measure of inflation and increase the volatility in the monthly CPI prints,' UBS economists led by Alan Detmeister said in a report obtained by Bloomberg. The cutback on data collection is just the latest red flag about the accuracy of the Trump administration's economic statistics. Jed Kolko, former Under Secretary for Economic Affairs at the Department of Commerce, wrote a blog post in April detailing several major threats to public trust in government statistics, including budget cuts. In March, Trump disbanded two outside advisory panels that helped the BLS produce its statistics. Kolko noted that expertise will be hard to replace.A survey of academic economists in March by the Chicago Booth School of Business showed that experts overwhelmingly believed the staff cutbacks at statistical agencies and the elimination of the advisory panels would lead to a "substantial reduction in the reliability of government economic data." Read the original article on Investopedia
