Integrys Energy Services tapped to supply Chicago's electricity

The same company that heats homes in Chicago has been picked to provide the electricity that powers them.

Integrys Energy Services, a sister company to Peoples Gas, on Friday was named the city's choice to supply electricity to about 1 million Chicagoans. It's the largest such deal negotiated by a city on behalf of its residents.

The City Council is to vote on the contract Wednesday after a Monday public hearing.

Chicagoans should see discounts of 20 to 25 percent from March through June. Afterward, savings are expected to drop. Overall, the average household is expected to save $130 to $150 through May 2015, when the contract ends, according to the mayor's office.

Mayor Rahm Emanuel said Friday the deal "will put money back into the pockets of Chicago families and small businesses."

The contract calls for the elimination of power produced from coal, the largest source of greenhouse gases. About 40 percent of Chicago's electricity is from coal.

"That's a giant step toward healthier air and clean, renewable energy that supports good paying jobs in the technologies of tomorrow," said Jack Darin, executive director of the Sierra Club's Illinois chapter and a member of the advisory committee that worked on the deal.

However, the no-coal provision is largely symbolic since there is no way to know the precise origin of electricity flowing into Chicago homes.

Integrys Energy Services, a subsidiary of Chicago-based Integrys Energy Group, was chosen from eight bidders and was the only company other than Exelon-owned Constellation NewEnergy that made it to the final round.

Integrys Energy Group's board includes William Brodsky, head of the Chicago Board Options Exchange and a member of World Business Chicago, which Emanuel chairs.

The Integrys unit won the electrical aggregation contract despite Emanuel's connection to Constellation through its parent company, Exelon, which also owns Commonwealth Edison. While working at investment banking firm Wasserstein Perella & Co. after leaving the Clinton White House in 1998, Emanuel helped set up the merger that created Exelon.

Price was the determining factor, the mayor's office said.

Bidding documents, including pricing and how the contract would be structured, were not made public Friday.

In picking a price, Integrys must account for a large number of customers that will come and go. If electricity prices rise, Integrys risks losing money. Still, Integrys stands to become a dominant player in the retail electricity business and gain about $300 million in yearly revenue.

"Scale is important in this business," said Travis Miller, a utilities analyst with Chicago-based Morningstar. "The winner is immediately going to gain a huge scale advantage within the retail market."

ComEd still will be responsible for delivering electricity and fixing outages. ComEd makes its money delivering electricity, not supplying it. Customers' new bills will look like the old bills, except that the portion titled "electricity supply services" will have a new rate and include the new supplier's name.

Chicagoans can opt out and stick with ComEd or choose their own supplier like thousands of people already have.

Tribune reporter John Byrne contributed.

jwernau@tribune.com

Twitter @littlewern

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Ex-Dixon official's home: Pool, baby grand, chandelier with pistols

Disgraced former Dixon comptroller Rita Crundwell's home has an in-ground pool, six-stall horse barn and baby grand piano in the living room.

U.S. Marshals offered tours to prospective buyers and media Friday as the items go up for an auction that ends Saturday. Crundwell pleaded guilty last month to stealing $53 million from the northern Illinois city's coffers to fund a lavish lifestyle.

That lifestyle included her home on 6 acres with a seven-stall dog kennel with heating and air conditioning. The Western-themed home is filled with custom leather and cowhide furniture. A chandelier in the dining room is made from revolvers and spurs. All of the items in the home were tagged and catalogued.

So far, the government has raised about $7.4 million from the sale of Crundwell's belongings.

Jason Wojdylo, a chief inspector with the Marshal Service's forfeiture division, said liquidating Crundwell's assets into cash will bring authorities “closer to easing our responsibility.” Crundwell's plea agreement requires her to pay full restitution.

Next year authorities plan an online auction of Crundwell's jewelry with an estimated value of about $500,000.

So far, the government has raised about $7.4 million from the sale of Crundwell's horses, luxury motor home, vehicles and other equipment.

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Exclusive: Google to replace M&A chief

SAN FRANCISCO (Reuters) - Google Inc is replacing the head of its in-house mergers and acquisitions group, David Lawee, with one of its top lawyers, according to a person familiar with the matter.

Don Harrison, a high-ranking lawyer at Google, will replace Lawee as head of the Internet search company's corporate development group, which oversees mergers and acquisitions, said the source, who spoke anonymously because he was not authorized to speak publicly.

Google is also planning to create a new late-stage investment group that Lawee will oversee, the source said.

Google declined to comment.

Harrison, Google's deputy general counsel, has been involved in Google's regulatory issues and many of Google's acquisitions. He joined Google more than five years ago and has completed more than 70 deals at the company, according to biographical information on the Google Ventures website. Harrison is an advisor to Google Ventures.

The planned late-stage investment group has not been finalized, the source said. The fund might operate separately from Google Ventures, the company's nearly four-year old venture division which provides funding for start-up companies, according to the source.

(Reporting By Alexei Oreskovic)

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MLB average salary up 3.8 percent to $3.2 million

NEW YORK (AP) — Baseball's average salary increased 3.8 percent this year to a record $3.2 million.

According to final figures released Friday by the Major League Baseball Players Association, the rise was the steepest since 2007. The boost was helped by an increase in the minimum salary from $414,000 to $480,000.

The New York Yankees had the highest average for the 14th consecutive season at $6.88 million, rising after consecutive declines from a peak of $7.66 million when they won the World Series in 2009.

The Los Angeles Dodgers rose from 13th to second at $5.55 million and Texas from 15th to fifth at $4.89 million.

At nearly $685,000 Houston had the lowest average since the 2006 Florida Marlins.

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UK’s Kate and William “saddened” by nurse’s death

LONDON (Reuters) – Britain’s Prince William and his wife Kate said on Friday they were “deeply saddened” by the death of a nurse who fell victim to a prank call from an Australian radio station seeking details of the duchess’s condition while she was in hospital for morning sickness.

The King Edward VII hospital earlier confirmed the death of the nurse, Jacinda Saldanha.

“Their Royal Highnesses were looked after so wonderfully well at all times by everybody at King Edward VII Hospital, and their thoughts and prayers are with Jacintha Saldanha‘s family, friends and colleagues at this very sad time,” said a statement from William’s office.

(Reporting by Tim Castle; editing by Stephen Addison)

Celebrity News Headlines – Yahoo! News

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Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Long-sealed Notorious B.I.G. autopsy released

LOS ANGELES (AP) — An attorney for the family of Notorious B.I.G. said Friday it's ridiculous that Los Angeles police have not arrested anyone for the rapper's 1997 killing, which has returned to the spotlight after coroner's officials released a long-sealed autopsy report.

The report revealed that injuries cause by a single bullet killed the rapper, whose real name was Christopher Wallace, during a drive-by shooting in March 1997. Wallace was hit by four bullets after leaving a music industry event, but one that hit his heart, left lung and colon caused his death, the 23-page report states.

Perry Sanders Jr. said he was not given any notice that the report would be released, and he criticized police for not closing one of Los Angeles' highest-profile unsolved murders, especially since he had been told that police had identified those responsible.

"I've been advised by the homicide detective that was in charge of the investigation and is no longer with the department that the crime has been solved for several years now," Sanders told The Associated Press. "This was confirmed by at least one other person who is currently on the force, and it is ridiculous that an arrest has not been made for a crime that's allegedly been solved for several years."

A 2011 book by former Los Angeles police detective Greg Kading claimed both murders had been solved, although no arrests have been made and federal prosecutors in 2005 declined to file charges after a lengthy, bi-coastal investigation.

Police spokesman Richard French declined to comment, saying Wallace's killing remained an open investigation.

The coroner's report had been sealed for more than 15 years until police lifted a hold on it last week, Chief Coroner Investigator Craig Harvey said. The report details the trajectory of each of the shots that hit the rapper from Brooklyn, N.Y., and states there were no signs of alcohol or blood in his system when he died.

Sanders, who dropped a federal civil lawsuit against the city in 2010 in order to give investigators an opportunity to investigate further, said solving the case was more important than any lawsuit.

"In no way shape or form is this about civil litigation," he said. "This is about the criminal justice system and it functioning properly."

The lawsuit Sanders filed on behalf of Wallace's family and widow Faith Evans ended in a mistrial in 2005 after attorneys discovered the city withheld a trove of LAPD documents.

The civil case could be refiled, although that has not yet occurred.

Both Los Angeles police and the FBI investigated Wallace's killing, which came just months after another rap superstar, Tupac Shakur, was gunned down in Las Vegas. The FBI looked into whether any Los Angeles police officers were involved in Wallace's shooting.

The deaths of Wallace and Shakur have been the subject of rampant speculation about the motives. The one-time friends became rivals and instigators in an East Coast-West Coast rap rivalry during the mid-1990s.

In March 2011, the FBI electronically released files on its investigation, which were heavily redacted but shed new light on the efforts that investigators took to try to find those responsible for the rapper's death. Agents conducted surveillance and interviews in Los Angeles, San Diego and New York, the files showed.

The agency did not have an immediate comment Friday on the release of the coroner's report or whether it was still investigating Wallace's death.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP .

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O'Hare affected by United's latest computer glitch

United Airlines experienced more computer problems Friday, causing systems to slow down.

"We have been experiencing short-term, intermittent Internet connectivity issues, causing some systems to run more slowly than normal," United spokesman Rahsaan Johnson said.

However, the airline is continuing to operate flights and "take care of customers," he said, adding that interruptions last for about five minutes.

The problem is only at some locations, including Chicago O'Hare International Airport, he said.

The glitch has not harmed the airline's on-time performance, which was running at 91.5 percent for United Airlines flights and about 85 percent for United Express flights, he said. Those rates are higher than normal for United, which has been running closer to 80 percent on time.

Computer problems have plagued the airline this year, starting in March when it switched to a new reservations system. During the summer its operations were especially poor, with rampant flight delays and cancellations.

gkarp@tribune.com

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Mother and son charged in drug overdose death

Carol Stedronsky, left, and her son Brian Stedronsky are charged with drug-induced homicide. Lake County Sheriff's Department photo (handout / December 6, 2012)

By Deanese Williams-Harris




Tribune reporter

2:35 p.m. CST, December 6, 2012

A mother and a son have been charged in the death of an Ingleside man, who died after using patches containing a strong pain killer that he had bought from them. 

Authorities launched an investigation in September after the death of Jeffrey Ferris, 30, who had been dropped off by Brian Stedronsky and his aunt,  police said. The two had dropped Ferris off about 1 a.m. on Sept. 18 after a night of partying, police said. It was not clear from police information if Ferris was dropped off at home or a hospital.

Brian Stedronsky told detectives he sold Ferris two patches containing fentanyl that he had purchased from his mother Carolyn Stedronsky. Ferris cut the patches open and sucked out the medication, police said.

Brian later admitted the patches were the second and third that he had sold Ferris, police said.

Carolyn Stedronsky told investigators she took the patches from her husband, who was prescribed the medication for an injury, police said.

The mother and son, both from Ingleside, were charged with a Class X felony of drug-induced homicide. The mother has been ordered held on $250,000 bail, the son on $300,000 bail, police said.

Brian and Carolyn Stedronsky are both being held at the Lake County Jail. Their next court dates are  Dec. 11.

dawilliams@tribune.com

Twitter: @neacynewslady

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Facebook in talks to buy Microsoft ad technology: reports

SAN FRANCISCO (Reuters) - Facebook Inc is in negotiations with Microsoft Corp about acquiring advertising technology that could allow the social network displays ads on other websites, broadly expanding its advertising business, according to media reports on Thursday.

Facebook is in "serious" discussions with Microsoft about a deal to purchase Atlas Solutions, an ad-serving product that Microsoft acquired through its $6 billion acquisition of aQuantive in 2007, according to reports in the technology blogs Business Insider and AllThingsDigital on Thursday.

The deal could allow Facebook to significantly expand its advertising business by showing ads on third-party websites, mounting a challenge to Google Inc's DoubleClick ad network, said the reports, which cited anonymous sources.

The potential price for the acquisition was unclear, though Business Insider said the highest bid for Atlas in Microsoft's previous attempts to sell the business was $30 million.

Facebook and Microsoft representatives declined to comment.

Facebook, the world's No. 1 online social network with roughly 1 billion users, has been moving aggressively to bolster its advertising business with new capabilities, including ads on mobile devices and features that demonstrate the effectiveness of its ads to marketers.

Facebook currently generates 86 percent of its revenue, which totaled roughly $1.3 billion in the third quarter, from ads that appear on its own website.

Shares of Facebook were off 1.2 percent, or 33 cents, at $27.38 in midday trading on Thursday. Microsoft shares were up 7 cents at $26.73.

(Reporting By Alexei Oreskovic; Editing by Neil Stempleman)

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