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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Michigan GOP approves right to work amid protests

LANSING, Mich. — Republicans slammed right-to-work legislation through the Michigan House and Senate Thursday, drawing raucous protests from throngs of stunned union supporters, whose outnumbered Democratic allies were powerless to stop it.

Just hours after they were introduced, both chambers approved measures prohibiting private unions from requiring that nonunion employees pay fees. The Senate quickly followed by voting to impose the same requirement on most public unions.

Although rumors had circulated for weeks that right-to-work measures might surface during the session's waning days, the speed with which the GOP-dominated Legislature acted Thursday caught many onlookers by surprise. Details of the bills weren't made publicly available until they were read aloud on both floors as debate began.

The chaos drew raucous protests from hundreds of union supporters, some of whom were pepper-sprayed by police when they tried to storm the Senate chamber.

Because of rules requiring a five-day delay between votes in the two chambers on the same legislation, final enactment could not take place until Tuesday at the earliest. Republican Gov. Rick Snyder, who previously had said repeatedly that right-to-work was "not on my agenda," told reporters Thursday he would sign the measures.

Democrats denounced the bills as an attack on worker rights, but the GOP sponsor insisted they would boost the economy and jobs. A House vote on public-sector unions was expected to come later.

A victory in Michigan would give the right-to-work movement its strongest foothold yet in the Rust Belt region, where organized labor already has suffered several body blows. Republicans in Indiana and Wisconsin recently pushed through legislation curbing union rights, sparking massive protests.

Even before the Michigan bills turned up, protesters streamed inside the Capitol preparing for what appeared inevitable after Snyder, House Speaker Jase Bolger and Senate Minority Leader Randy Richardville announced at a news conference they were putting the issue on a fast track.

"This is all about taking care of the hard-working workers in Michigan, being pro-worker and giving them freedom to make choices," Snyder said.

"The goal isn't to divide Michigan, it is to bring Michigan together," Snyder said.

But Democrats said the legislation — and Republicans' tactics — would poison the state's political atmosphere.

Lt. Gov. Brian Calley repeatedly gaveled for order during the Senate debate as Democrats attacked the legislation to applause from protesters in the galley. At one point, a man shouted, "Heil Hitler! Heil Hitler! That's what you people are." He was quickly escorted out. Another later yelled, "We will remember in November."

Eight people were arrested for resisting and obstructing when they tried to push past two troopers guarding the Senate door, state police Inspector Gene Adamczyk said.

Protesters waved placards and chanted slogans such as "Union buster" and "Right-to-work has got to go." Adamczyk said the troopers used pepper spray after the people refused to obey orders to stop.

The Capitol, which was temporarily closed because of safety concerns, reopened Thursday afternoon, sending hundreds of protesters streaming back inside with chants of, "Whose house? Our house!" Adamczyk said a judge ordered the building reopened.

The decision to push forward in the waning days of the Legislature's lame-duck session infuriated outnumbered Democrats, who resorted to parliamentary maneuvers to slow action but were powerless to block the bills.

House Democrats did walk out briefly Thursday in protest of the Capitol being closed.

Adamczyk estimated that about 2,500 visitors were inside the Capitol, where their shouts reverberated off stone halls and frequently could be heard inside the ornate chambers.

After repeatedly insisting during his first two years in office that right-to-work was not on his agenda, Snyder reversed course Thursday, a month after voters defeated a ballot initiative that would have barred such measures under the state constitution.

In an interview with The Associated Press, Snyder said he had kept the issue at arm's length while pursuing other programs to bolster the state economy. But he said circumstances had pushed the matter to the forefront.

"It is a divisive issue," he acknowledged. "But it was already being divisive over the past few weeks, so let's get this resolved. Let's reach a conclusion that's in the best interests of all."

Also influencing his decision, he said, were reports that some 90 companies had decided to locate in Indiana since that state adopted right-to-work legislation. "That's thousands of jobs, and we want to have that kind of success in Michigan," he said.

Snyder and the GOP leaders insisted the legislation was not meant to weaken unions or collective bargaining, saying it would make unions more responsive to their members.

Senate Democratic leader Gretchen Whitmer said she was "livid."

"These guys have lied to us all along the way," she said. "They are pushing through the most divisive legislation they could come up with in the dark of night, at the end of a lame-duck session and then they're going to hightail it out of town. It's cowardly."

Republicans have commanding majorities in both chambers — 64-46 in the House and 26-12 in the Senate. Under their rules, only a simple majority of members elected and serving must be present to have a quorum and conduct business. For that reason, Democrats acknowledged that boycotting sessions and going into hiding, as some lawmakers in neighboring Indiana and Wisconsin have done in recent years to stall legislation unpopular with unions, would be futile in Michigan.

Throngs of protesters spent weeks outside capitol buildings in those states, clashing over union rights.

"We will not have another Wisconsin in Michigan," Adamczyk said. "People are allowed to protest, but they need to do in a peaceful manner."

Associated Press

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Firm says first BlackBerry 10 phone to debut in March, QWERTY phone won’t launch until June

Research In Motion (RIMM) is gearing up for a series of make-or-break releases that could be considered the most important device launches in the company’s history. Everything is riding on the success of the RIM’s BlackBerry 10 platform, which will be unveiled in its finished state on January 30th next year. RIM CEO Thorsten Heins is on record confirming that BlackBerry 10 will launch in the first quarter and company COO Kristian Tear previously stated new BlackBerry devices will be available “not too long after” the platform is unveiled late next month, but exact timing is still a mystery. According to Boston-based brokerage firm Detwiler Fenton, however, RIM’s first two BlackBerry 10 handsets won’t launch until March and June, respectively.

“RIM’s stock has been on a tear recently thanks to a number of upgrades and optimism surrounding its upcoming BB10 platform,” Detwiler analysts wrote in a note to clients picked up by Forbes. “However, as we dig a little deeper, there appears to be a few issues that could set up for some disappointing numbers in the 2013 first half.”

The firm goes on state that AT&T (T) and T-Mobile will launch the first BlackBerry 10 smartphone some time in March, while Verizon Wireless (VZ) and Sprint (S) are targeting May launches. Detwiler also states that the second BlackBerry 10 smartphone, which will feature a touchscreen and a full QWERTY keyboard, might not launch until June.

“Therefore, it is possible RIMM’s February quarter may only see a very small number of BB10 sales with the May quarter also coming in light due to limited QWERTY keyboard shipments and limited shipments to Sprint and Verizon,” the firm continued. “It’s our opinion RIM will ship approximately 400,000 BB10 units in the February quarter and 2.2 million to 2.5 million units in the May quarter. While this is clearly a North American / developed market view, we think this is the right way to look at the 2013 first half because the initial BB10 handsets are higher end and not targeted for emerging markets.”

When asked to comment on the Detwiler note, RIM spokesman Nick Manning reiterated the company’s earlier position. ”Details of the commercial availability for BlackBerry 10 will be announced at the global launch events on January 30,” Manning said in a comment provided to BGR via email. “Our executives have made it clear that the touch screen device will be available shortly after launch with the physical keyboard version to follow shortly after that.”

BGR’s own sources were not able to provide details regarding the exact timing of RIM’s upcoming launches, however we are hearing from reliable sources that RIM’s QWERTY-equipped BlackBerry 10 smartphone will launch well ahead of the June timeframe mentioned by Detwiler.

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“Dancing with the Stars” Burke says voice fine after thyroid surgery

LOS ANGELES (Reuters) – “Dancing with the Stars” co-host Brooke Burke said on Thursday that her surgery for thyroid cancer had gone well and that she had not lost her voice.

“Thank God it’s over. I’m clean, surgery went well & I can talk. Losing my voice was my biggest fear. Thx for all your prayers & light,” Burke said in a Twitter posting.

Burke, 41, a former winner of ABC-TV’s popular celebrity ballroom dancing competition, announced in November that she had been diagnosed with thyroid cancer.

The surgery took place just over a week after the season finale of “Dancing with the Stars” on November 27. The mother of four has said it will leave her with a large scar across her neck.

The thyroid is a gland in the neck that produces hormones that regulate vital body functions, such as heart rate and blood pressure.

(Reporting By Jill Serjeant; editing by Philip Barbara)

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Lurie Children's Hospital sees surge in patients at new Chicago building

Executives at the Ann & Robert H. Lurie Children's Hospital of Chicago expected a "bump" in patients when the $855 million hospital opened in June.

They weren't prepared for a mountain.

Since the former Children's Memorial traded its patchwork of aging buildings in Lincoln Park for a new high-rise in Streeterville on June 9, patient volume has surged, more than doubling hospital projections.

The number of patients is up about 16 percent in the first five months, according to hospital data, an increase driven by an influx of children with more acute health problems, including transplant patients, kids with heart problems and others in need of specialized care.

Revenue over that five-month period increased 12.9 percent to $222 million.

"We expected to have a new-hospital bump in (patients). We had a new-hospital mountain," said Michelle Stephenson, Lurie Children's chief patient care services officer and chief nurse executive. "We've had some months where the (number of inpatients) was 24 percent over what we expected. "

To meet the demand, the hospital hired 151 nurses to ensure full coverage, she said.

Those new hires came on top of about three dozen pediatric specialists and department heads Lurie Children's recruited in the run-up to the hospital opening.

Stephenson said the hospital has yet to determine the specific reasons behind the jump in patients, but said data shows it is drawing more children from the collar counties and downstate.

She also cited the location, adjacent to Northwestern Memorial Hospital, Northwestern University's Feinberg School of Medicine and Prentice Women's Hospital, which is connected to Lurie via an enclosed skyway.

Moving 31/2 miles south next to Prentice, which sends Lurie about a quarter of its patients, is likely a significant factor in the patient boom, said Jay Warden, a senior vice president at The Camden Group, a consulting firm.

"It used to be a challenge for moms to have a baby transferred to Children's while they had to stay at Prentice until they're discharged," Warden said. "Now it's the best of both worlds for both hospitals."

Warden said hospitals typically get a burst of new patients when they open facilities, in part because of the accompanying marketing and publicity blitz. That's not always the case with children's hospitals, which tend to serve the sickest and smallest of patients who have few other options.

He said limitations at the old hospital likely kept some patients away.

Indeed, Children's Memorial had a listed capacity of 247 beds, but with shared rooms and other factors, executives considered the hospital full at 220 patients, Stephenson said. The Lurie hospital has a capacity of 288 beds in all-private rooms, which it has come close to filling on a few occasions.

One ward that's consistently bursting at the seams is the neonatal intensive care unit, which was built to handle 44 patients but is averaging about 50. Some of the children have been bumped into shared space in the hospital's cardiac care unit, Stephenson said.

As for patients, the new facility has been a hit, with satisfaction scores up an average of 10 percent, hospital officials said.

Tina Sneed, whose 18-year-old daughter Whitney Ballard recently underwent a liver transplant at the hospital, said she's happy with the expanded rooms and new areas for parents.

She and her daughter have made several 7-hour trips from Kentucky in the last 18 months to see specialists, including overnight stays at both facilities.

Her only complaint?

"The waiting room was kind of crowded," she said. "It was nothing too bad, they just have so many (surgeries) going on at the same time we barely had room to move in there."

pfrost@tribune.com

Twitter @peterfrost

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Burglars hit Jimmy Choo store in Gold Coast

Broken glass from a display case lays shattered on the floor of the Jimmy Choo store on Oak Street in Chicago. (Heather Charles, Chicago Tribune / December 6, 2012)

By Peter Nickeas




Tribune reporter

9:33 a.m. CST, December 6, 2012

Three men forced their way through the front door of a Jimmy Choo store on Oak Street overnight and walked out with a "large amount" of shoes and handbags, police said.

The burglary happened about 1:45 a.m., Police News Affairs Officer John Mirabelli said.

"Two offenders pried open the front door. . .and all three remained in the store, removing various items," Mirabelli said.

The trio fled in a four-door vehicle with bags and shoes.

Most handbags at the store sell for between about $1,000 and $3,000, according to its website. Shoes range from around $300 to as high as $3,000.

No one was in custody.

pnickeas@tribune.com
Twitter: @peternickeas

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Apple to return some Mac production to U.S. in 2013: report

(Reuters) – Apple Inc is planning to bring back some of its production of Mac computers to the United States from China next year, Chief Executive Tim Cook said, according to a report published Thursday.

The company will spend more than $ 100 million to build the computers in the United States, Cook was cited as saying in an interview with Bloomberg Businessweek.

“This doesn’t mean that Apple will do it ourselves, but we’ll be working with people and we’ll be investing our money,” Cook said.

He told NBC in an interview to be aired late Thursday that only one of the existing Mac lines would be manufactured exclusively in the United States.

Higher-tech products are largely made overseas, often in subcontracted factories not owned by the brands whose products they are making.

Cheaper labor costs have been key in encouraging U.S. manufacturers to have move production to China, but with Chinese wage and transport costs increasing, the advantage against the U.S. has narrowed in recent years.

(Reporting by Nicola Leske; Editing by Bernadette Baum)

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“Community”: Jason Alexander filming “Crazy” guest spot

LOS ANGELES (TheWrap.com) – “Community” might be losing a Chevy Chase, but it’s gaining a Jason Alexander.

Former “Seinfeld” star Alexander, who played neurotic bumbler George Costanza on the series, will guest-star on the beleaguered NBC comedy, and while the actor is tight-lipped on the details, he promises that the episode will be a doozy.

“Filming a crazy episode of ‘Community’ this week,” the actor tweeted early Tuesday. “Can’t say much about it but it’s a fun one.”

It is not known what role Alexander, who guest-starred on “Two and a Half Men” earlier this year, will play on the series, or if he will appear on more than one episode. A spokeswoman for the NBC series has not yet responded to TheWrap’s request for comment.

Last month, news broke that Chevy Chase – who plays Pierce Hawthorne on the series – is leaving “Community,” following an ugly standoff with the show’s creator and former showrunner, Dan Harmon, and an incident when he reportedly tossed out the N-word, after complaining about his character’s racism. Chase will appear in most of the episodes of the upcoming fourth season.

“Community” returns to the air February 7.

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Antismoking Outlays Drop Despite Tobacco Revenue

Faced with tight budgets, states have spent less on tobacco prevention over the past two years than in any period since the national tobacco settlement in 1998, despite record high revenues from the settlement and tobacco taxes, according to a report to be released on Thursday.

Paul J. Richards/Agence France-Presse — Getty Images

State antismoking spending is the lowest since the 1998 national tobacco settlement.

States are on track to collect a record $25.7 billion in tobacco taxes and settlement money in the current fiscal year, but they are set to spend less than 2 percent of that on prevention, according to the report, by the Campaign for Tobacco-Free Kids, which compiles the revenue data annually. The figures come from state appropriations for the fiscal year ending in June.

The settlement awarded states an estimated $246 billion over its first 25 years. It gave states complete discretion over the money, and many use it for programs unrelated to tobacco or to plug budget holes. Public health experts say it lacks a mechanism for ensuring that some portion of the money is set aside for tobacco prevention and cessation programs.

“There weren’t even gums, let alone teeth,” Timothy McAfee, the director of the Office on Smoking and Health at the Centers for Disease Control and Prevention, said, referring to the allocation of funds for tobacco prevention and cessation in the terms of the settlement.

Spending on tobacco prevention peaked in 2002 at $749 million, 63 percent above the level this year. After six years of declines, spending ticked up again in 2008, only to fall by 36 percent during the recession, the report said.

Tobacco use is the No. 1 cause of preventable death in the United States, killing more than 400,000 Americans every year, according to the C.D.C.

The report did not count federal money for smoking prevention, which Vince Willmore, the vice president for communications at the Campaign for Tobacco-Free Kids, estimated to be about $522 million for the past four fiscal years. The sum — about $130 million a year — was not enough to bring spending back to earlier levels.

The $500 million a year that states spend on tobacco prevention is a tiny fraction of the $8 billion a year that tobacco companies spend to market their products, according to a Federal Trade Commission report in September.

Nationally, 19 percent of adults smoke, down from over 40 percent in 1965. But rates remain high for less-educated Americans. Twenty-seven percent of Americans with only a high school diploma smoke, compared with just 8 percent of those with a college degree or higher, according to C.D.C. data from 2010. The highest rate — 34 percent — was among black men who did not graduate from high school.

“Smoking used to be the rich man’s habit,” said Danny McGoldrick, the vice president for research at the Campaign for Tobacco-Free Kids, “and now it’s decidedly a poor person’s behavior.”

Aggressive antismoking programs are the main tools that cities and states have to reach the demographic groups in which smoking rates are the highest, making money to finance them even more critical, Mr. McGoldrick said.

The decline in spending comes amid growing certainty among public health officials that antismoking programs, like help lines and counseling, actually work. California went from having a smoking rate above the national average 20 years ago to having the second-lowest rate in the country after modest but consistent spending on programs that help people quit and prevent children from starting, Dr. McAfee said.

An analysis by Washington State, cited in the report, found that it saved $5 in tobacco-related hospitalization costs for every $1 spent during the first 10 years of its program.

Budget cuts have eviscerated some of the most effective tobacco prevention programs, the report said. This year, state financing for North Carolina’s program has been eliminated. Washington State’s program has been cut by about 90 percent in recent years, and for the third year in a row, Ohio has not allocated any state money for what was once a successful program, the report said.

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Clock running out for owners of prime parcels near McCormick Place

The development team behind a long-stalled plan to build hotels and restaurants just north of McCormick Place suffered a serious setback in federal bankruptcy court on Wednesday afternoon.

Judge Jack Schmetterer granted a motion by lender CenterPoint Properties Trust to reject the latest development plan of property owner Olde Prairie Block Owner LLC, which is led by developers Pamela Gleichman, Karl Norberg and Gunnar Falk.

Schmetterer said Olde Prairie failed to show its plans were financially plausible, noting its pledges from investors were highly conditional.

"It's a maybe situation," he said. He gave them 10 days to produce a more solid plan.

"I urge them to take their best shot, because it is the last one they will get," he said. The next hearing is Dec. 17.

Gleichman said she is confident she can get more iron-clad commitments from her team's investment partners within that time frame.

If Schmetterer dismisses the bankruptcy case at the next hearing, it would open the door for a foreclosure auction of the property. This would make it possible for the Metropolitan Pier and Exposition Authority, the state-city agency that owns McCormick Place, or other parties, to bid for the properties located on the north side of Cermak Road, across the street from the authority's administrative offices and the West Building of McCormick Place.

McCormick Place officials are aiming to vastly expand the amenities surrounding the convention complex to include more hotels, restaurants, entertainment venues and an arena that could host large-scale corporate assemblies and potentially collegiate sports such as DePaul Blue Demons basketball.

DePaul University, which would like to bring its men's basketball back to the city from its current home at the Allstate Arena in Rosemont, is weighing a number of sites. McCormick Place and United Center officials have acknowledged talks with the university.

Opposition to an arena on the Olde Prairie blocks surfaced this week, with the Prairie District Neighborhood Alliance writing a letter stating an arena would be out of character in the historic residential area and would create traffic problems. Ald. Robert Fioretti, whose 2nd ward includes McCormick Place, has expressed opposition to an arena on that site as well.

kbergen@tribune.com | Twitter @kathy_bergen

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