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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Crosby mulling options as NHL lockout drags on

CANONSBURG, Pa. (AP) — Sidney Crosby just wants to get back to work. At this point, where he takes the ice hardly matters.

The Pittsburgh Penguins star said Friday the prospect of lacing up his skates in Europe is growing more appealing as the NHL lockout nears the three-month mark. The latest round of talks between owners and players broke down Thursday night, leaving Crosby "disappointed" and considering other opportunities.

"I just want to play hockey," Crosby told reporters after an informal workout with some of his teammates on Friday morning. "As far as whatever option is best there, I'll start thinking of it a lot more because this stuff is getting ridiculous."

Crosby spent three days in New York this week as part of the negotiations and felt progress was being made until NHL commissioner Gary Bettman shot down any growing optimism during an emotionally charged press conference in which the commissioner scoffed at the idea the sides were close to a deal.

With no deal in the works, Crosby ended up taking a late-night flight back to Pittsburgh wondering what else the players could have done to move things along.

"I think we knew what the issues were and we moved on those," Crosby said. "I think if it's the case there like Gary said in his press conference, where they're going to draw a line in the sand, just say that, don't waste guys' times there."

The lockout has become another setback in a maddening two years for the game's most popular player. The 2007 NHL MVP and 2010 Olympic gold medalist has been limited to just 28 games since January 2011 due to a series of debilitating concussions. He's healthy now and signed a 12-year contract extension last summer that would keep him in Pittsburgh until his late-30s.

Yet instead of focusing on getting the Penguins back to the Stanley Cup, Crosby has spent the last three months trying to help salvage at least part of the season. All games through Dec. 14, along with the New Year's Day Winter Classic and the All-Star game, have been canceled. The last NHL lockout resulted in the 2004-05 season getting wiped out.

"The foundation (for a deal) is there and I don't think we can move any more," Crosby said. "We've done everything from our side to make this work"

Though any foreign team that signs Crosby would also have to take out an expensive insurance policy, Crosby maintains playing overseas — where dozens of NHL players are keeping sharp, including Penguins teammate Evgeni Malkin — is a "practical" alternative.

"I think I've tried to be optimistic and things like that and given it every chance possible," Crosby said. "But I've got make sure I keep playing hockey. I haven't played for awhile."

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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 drugs 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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Preckwinkle rips Emanuel, McCarthy's handling of violence

Cook County Board President Toni Preckwinkle today publicly blasted Mayor Rahm Emanuel’s crime-fighting strategy and the quality of the public schools he controls, then quickly walked back the remarks.

The Democratic leader said her criticism was targeted at society as a whole and not the mayor personally, much as she did last summer when she harshly criticized former President Ronald Reagan for his role in the war on drugs.

The comments about Emanuel came during a question-and-answer session during a luncheon at the Union League Club. Preckwinkle was asked how to address Chicago violence.

“Clearly, this mayor and this police chief have decided the way in which they are going to deal with the terrible violence that faces our community is just arrest everybody,” Preckwinkle said. “I don’t think in the long term that’s going to be successful.

“We’re going to have to figure out how to have interventions that are more comprehensive than just police interventions in the communities where we have the highest rates of crime. And they’re almost all in African-American and Latino communities.”

Homicides and shootings in Chicago have attracted national attention this year following a spike in the city’s murder rate and brazen incidents such as the shooting of a young man at a funeral for a gang member.

Preckwinkle said much of the problem results from a school system that has a low high school graduation rate.

“We have contented ourselves with a miserable education system that has failed many of our children,” Preckwinkle said, saying more after-school enrichment and job-training programs are needed. “I’m talking about the kids who don’t graduate, let alone the kids who graduate don’t get a very good education, even with a high school diploma.”

At a news conference after her speech and question session, Preckwinkle said her criticism of schools wasn’t aimed at Emanuel, who as mayor appoints the Chicago Public Schools board and picks the system’s CEO.

“This was a critique of all of us, it wasn’t aimed at the mayor,” said Preckwinkle, a former CPS high school history teacher.

Preckwinkle also acknowledged that Emanuel is putting more city money into early childhood education, after-school programs and youth job programs — in part through programs coordinated with the county.

Her point, she said, was that education over the long run will do more to quell violence than arresting people and locking them up.

“You know unfortunately we live in a country in which we are much more willing to spend money on keeping people in prison than we are on educating them in our public schools,” she said. “And that’s disgraceful. It reflects badly on all of us.”

She added, “I don’t think we are going to arrest our way out of our violence problems.”

Mayor Emanuel's aides said they just learned of the remarks and are preparing a response.

Preckwinkle is a liberal who has been consistently critical of a justice system that locks up African-American and Latino men in far greater numbers than their white counterparts, particularly for drug crimes when studies show drugs are used in equal numbers across ethnic and racial boundaries

It wasn’t the first time that, while speaking without a script, she made comments that ruffled some feathers.

In August, she said former President Ronald Reagan deserved “a special place in hell” for his role in the War on Drugs, later saying she regretted the “inflammatory” remark.

hdardick@tribune.com

Twitter @ReporterHal

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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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Roethlisberger to start against Chargers

PITTSBURGH (AP) — Pittsburgh Steelers quarterback Ben Roethlisberger will start on Sunday against the San Diego Chargers.

Roethlisberger missed the last three weeks with a sprained right shoulder and dislocated rib but practiced for the second straight day on Thursday without incident. Roethlisberger said he felt "good" but declined to go into details. Offensive coordinator Todd Haley said he believes Roethlisberger can make all the necessary throws.

The Steelers (7-5) went 1-2 in Roethlisberger's absence, including a 23-20 victory over Baltimore last week behind backup Charlie Batch. Tight end Heath Miller said he hasn't noticed any drop off in velocity from Roethlisberger, who took "90 percent" of the snaps with the first team on Thursday.

Pittsburgh is tied with Cincinnati for the AFC's final wild card spot.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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