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Food prices shot higher across the country last year, but one grocery list mainstay could see a little relief in 2008.

The U.S. Department of Agriculture is predicting that milk prices won't come close to the 12 percent surge in 2007. A 1.1 percent increase in the cow population and 1.7 percent growth in the average output per cow are expected to help keep wholesale prices under control this year.

The USDA expects milk production to increase 2.7 percent in 2008, faster than last year's 2.1 percent growth get a free credit report.

Milk at $4 a gallon is already a reality in some U.S. cities. But the average price nationwide is still holding under that lofty mark.

The production increase also should help moderate retail prices for other dairy products such as butter, cheese and ice cream.

For more: www.usda.gov.

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Fidelity Investments said on Wednesday it agreed to pay an $8 million penalty after the Securities and Exchange Commission accused the mutual fund giant’s employees, including former star Magellan fund manager Peter Lynch, of taking jet trips and sporting event tickets from outside brokers vying for business.

“The broker selection process on Fidelity’s equity trading desk was compromised when gifts and lavish entertainment swayed the flow of brokerage business,” said Walter Ricciardi, an SEC official.

Lynch, a Fidelity icon and vice chairman, got numerous tickets to concerts, theater and sporting events paid for by outside brokers through his requests to two traders on Fidelity’s equity trading desk.

In all, the SEC accused Fidelity and 13 current and former employees of accepting more than $1.6 million in gifts from outside brokers. Outside brokers are keen to court Fidelity because of its massive trading volume on the behalf of its mutual funds.

Fidelity did not admit or deny any wrongdoing as part of the civil settlement.

The SEC’s order against Lynch required him to pay $15,948 for his gifts and $4,183 in pre-judgment interest payday advance. Lynch also did not admit or deny any wrongdoing.

Bart Grenier, a Fidelity senior vice who supervised the equity trading desk, is accused of accepting $38,500 worth of tickets from brokers to 21 concerts and sporting events. He did not admit or deny any wrongdoing.

Fidelity employees got private jet trips to Bermuda, tickets to the Super Bowl and the Ryder Cup golf tournament, for example.

The mutual fund said in a statement the SEC settlement concludes regulatory investigations into events that took place more than three years ago.

Since then, Fidelity said it has taken actions to prevent the misconduct from happening again. Individuals involved have been disciplined by Fidelity, the company said.

None of the individuals cited by the SEC remain on the trading desk and most are no longer with the company, Fidelity said.

In 2006, Fidelity paid $42 million to its funds and an additional payment to other accounts Fidelity advises as a penalty for this same misconduct.

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Carrizo Oil & Gas Inc. has priced a public offering of about 2.3 million shares at $54.50 per share.

The per share price is 1 percent lower than the Houston-based energy company's Feb. 13 closing price of $55.14. The company's stock opened Thursday at $54.95 per share.

Underwriters have the option of purchasing up to 337,500 additional shares to cover over-allotments 500 fast cash.

If all of the shares sell, proceeds will total $1.2 billion.

Carrizo (NASDAQ: CRZO) said proceeds from the sale will be used to fund its leasing and drilling program as well as to pay down debt.

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State Comptroller Thomas P. DiNapoli said Sunday the Thruway Authority should call off its next round of toll increases and added, the agency "could manage its finances a whole lot better."

DiNapoli made his recommendation in a highly anticipated audit saying the agency should postpone future hikes until it has conducted a thorough analysis of its expenses and operations and prioritized capital projects.

The audit examined whether the calculations used in justifying four proposed toll increases along the highway in July 2008, January 2009, July 2009 and January 2010 were accurate and reasonable.

"It's easy to raise tolls, but the Thruway Authority should take a hard look in the mirror before it pushes another toll hike on New Yorkers," DiNapoli said. "Toll hikes are not warranted until the Thruway Authority examines its own spending. The Thruway is too important to the upstate economy to unnecessarily raise tolls and drive up the cost of everything from milk to heating oil, not to mention the impact on commuters."

Tolls on the thruway were also raised earlier this month, which sparked an outcry from motorists and elected officials.

"Comptroller DiNapoli is to be commended for investigating and bringing to light Thruway Authority mismanagement that many of us have long suspected to be true," said Rep. Brian Higgins, D-Buffalo. "Travelers along the Thruway are forced to pay for maintenance and improvements twice, once in the federal gas tax, which is paid by consumers and passed down to the Authority, and again through tolls.

Higgins, a former state Assemblyman, said the audit should be used to make sweeping reforms within the Thruway Authority.

In a response, the Thruway Authority generally agreed with the facts of the audit but disagreed with many of the conclusions, according to the comptroller creditreports.

The Thruway Authority board is considering a series of toll increases that would take effect from July 2008 through January 2010. The board will be holding hearings on the proposed hikes. These proposed toll increases are expected to generate a total of $520 million in additional revenue.

Tolls account for more than 90 percent of the Thruway Authority's operating revenue. The comptroller's report said in 2006, $554.4 million was collected at toll booths.

Thruway Authority officials say the revenue is needed to cover cash shortfalls projected over the next five years caused by a reduction in traffic growth and an increase in the use of E-ZPass discounts. Part of the revenue is also needed for the agency's $2.7 billion capital plan, which extends through 2011.

The comptroller's audit noted the agency significantly underestimated federal funding and has not taken aggressive cost-cutting measures. DiNapoli also said the Thruway Authority failed to collect $27.5 million in unpaid tolls and penalties over a six-year period, pointing out that one out-of-state trucking company was cited for 2,226 violations and owes $59,159 in unpaid tolls.

As he released the audit, DiNapoli also recommended that the state's canal system be removed from the Thruway Authority's operations and that a feasible, long-term solution for financing, managing and planning the future of the canal system be developed. The Thruway Authority took control of the canal system in the 1990s.

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