Ray Hanania
Gas execs need to feel the chill
By Ray Hanania
You would think that record low temperatures might save you money. But not in Illinois and not at Nicor gas, the company that has a monopoly on how we heat our homes.
You can’t switch your utility companies. They are determined by geographic location.
Originally an Illinois company gobbled up by AGL, a Georgia conglomerate in 2011, Nicor was then gobbled up again by Southern Gas Company in 2015, also based in Georgia.
Nicor is the perfect example of how a shell game works.
In 2018, the average monthly cost to heat my home comfortably with Nicor was about $50 a month. In 2020, when the pandemic began, it dropped slightly. Then it started to go back up.
The pandemic was a factor. The weather was warmer and many major companies were having employees work from home, which was great for reducing office costs and getting employees to be more productive by working twice as much for the same amount of money. And that kept gas prices down.
Nicor does not profit off the cost of the gas supply. Under Illinois law, Nicor must pass on the costs of natural gas to consumers, with no markup.
However, they make up for it in other ways. Nicor profits off the rates they charge to deliver gas to our homes. You know, through that underground pipeline connected to every home through which little elves work hard and sweat 24 hours a day, lugging that heavy gas to each home and business.
It’s really hard work. Fortunately, the elves do it for free.
That’s why the Illinois Commerce Commission, without protest from Gov. JB Pritzker, gave Nicor a $240 million rate hike last November, the third increase it has gotten in the past four years or more than $501 million in rate hikes since 2017.
I wish “JB” would care about homeowners the way he does his buddies who run Nicor. Did I ever ask out loud why a guy named “Jay Robert” would use the initials “JB” instead of “J.R.”? I digress.
As a consequence, Nicor more than doubled the cost of providing natural gas to customers, not because natural gas prices increased so dramatically, but because their profits dipped and they need the cash to pay for infrastructure improvements and the higher costs of delivery.
Damn elves. Always asking for more cash!
One of the driving forces of the price hikes are surcharges that AGL has imposed on customers through Nicor.
Every government uses the excuse that the pipes are made of lead and installed in the 1800s, or our equipment is eroding and needs to be repaired.
Yet Nicor doesn’t impose a surcharge or price hikes on everyone. They do it just on the customers.
Nicor is a public utility and yet it acts like it is “Gordon Gecko’s” private corporation.
How much do Nicor executives make each year in salaries, bonuses and benefits?
In 2010, Russ Strobel made $3,312,213 in total compensation as chairman of the board, chief executive officer and president of Nicor and Nicor Gas at Nicor Inc. in 2010. $1,540,031 was received as total cash; $1,543,916 was received as equity and $228,266 was received as pension and other forms of compensation.
Not too shabby for the 33rd highest paid executive in the country, according to S&P Capital IQ.
John O. Hudson III was named Nicor president and CEO in June 2020. He also is a senior vice president at Southern Company Gas, which owns four natural gas companies, including Nicor. I guess Hudson has a lot of time on his hands.
But go to Google and type in the query “What is the salary of John O. Hudson III?” and you get zip. Nada. Nothing. So, we can only guess at how much he makes.
The Citizen Utility Board, which monitors utility companies for the public, does a lot of screaming but honestly, they need to get their act together.
So, we are left with Nicor’s suggestion on how to save money. Reduce the heat you use.
Sure, lower the temperature in your home. Wrap yourself in a blanket. Nothing expensive, of course. Something cheap. Put people together in a small room and use body heat to generate warmth.
I have a better idea. How about asking Nicor to reduce their executive salaries and make them wrap themselves in blankets?
Check out Ray Hanania’s columns and political podcasts at hanania.com.
Local News
Swanson scores, assists in Red Stars’ win over Reign
Spread the loveThe Red Stars improved to 3-1-1 by beating the Seattle Reign, 2-1, on the road on April 21. Mallory Swanson had an assist on an Ali Schlegel goal in the fourth minute and added a goal of her own in the 31st minute. Swanson missed last season after sustaining a knee injury on…
Red Stars’ Tatumn Milazzo has top Save of the Week
Spread the loveBy Jeff Vorva Correspondent Tatumn Milazzo called her achievement “funny.” The Chicago Red Stars defender and Orland Park native was awarded the NWSL’s Save of the Week after chasing down a ball in a loss to Angel City on April 13. The Save of the Week usually goes to a goalie. Milazzo laughed…
Men’s College Volleyball | Saint Xavier captures fifth straight conference tourney title
Spread the loveBy Jeff Vorva Correspondent The SXU men’s volleyball team won its fifth straight Chicagoland Christian Athletic Conference tournament championship after a 25-16, 25-17, 25-22 sweep of Calumet College of St. Joseph on April 20 at the Shannon Center. Jan Lopuch had 10 kills and nine digs for the Cougars. With the win, the…
College Baseball | Saint Xavier upsets Eastern Illinois
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier baseball team picked up a win that its players are going to remember for a long time. The Cougars stunned Eastern Illinois, 4-2, on April 17 in Charleston. It was the Cougars’ first win over the Panthers, a Division I program, since 2005. Lyons grad Troy…
St. Laurence hoops teams top honor roll
Spread the loveBy Jeff Vorva Correspondent Area basketball teams proved to be strong on the court and in the classroom this season, and St. Laurence was the leader of the pack. The Illinois Basketball Coaches Association compiled a list of the top academic teams, and the area did well. In Division 3 girls, St. Laurence…
Chicago Bears recognize St. Rita senior with All-Star award
Spread the loveBy Jeff Vorva Correspondent Chances are good that few outside of St. Rita football circles know who David Lyle is. With good reason. Lyle missed his senior season for the Mustangs last fall after sustaining a serious knee injury. He even postponed having knee surgery so that he could take care of his…
Pols want 63rd St. armory for new police HQ
Spread the love. Porfirio, Guerrero-Cuellar push plan in Springfield . By Tim Hadac Any plans the Chicago Department of Aviation may have had for the vacant Army National Guard Midway Armory, 5400 W. 63rd St., may be grounded, at least for now. Several elected officials are eyeing the parcel as the headquarters of a new…
Her back against the wall, Stacy needs help
Spread the love. By Tim Hadac Editor Clear-Ridge Reporter & NewsHound (708)-496-0265 . Clearing and Garfield Ridge have earned a reputation as a place where people look out for each other—and that sometimes means caring for each other in times of need. Today, I want to talk about one such person, who sure could use…
Neighbors
Capacity crowd speaks out against Evergreen Park dispensary
Spread the loveBy Joe Boyle Additional chairs had to be brought out to seat an overflow crowd of Evergreen Park residents who attended a meeting April 15 regarding a proposed cannabis dispensary for the village. And many who were in attendance voiced their opposition to having a dispensary in Evergreen Park. Most of the people cited…
Countryside puts dog park on hold, will require leashes in two parks
Spread the loveBy Steve Metsch The city of Countryside has put on hold building a dog park, but canines and their owners are still in store for a treat. The city council has unanimously approved a plan to permit dogs in City Park and Countryside Park this year. Previously, they were not allowed in the…
Bridgeview approves auto repair shop
Spread the loveMoves up time for May 1 village board meeting By Steve Metsch Bridgeview is getting a new automotive repair shop. The village board at its April 17 matinee meeting approved a special use permit that will allow a repair shop at 9010 S. Beloit Ave. There was no discussion among trustees. The board…
Summit Fire Department blood drive draws a crowd
Spread the loveBy Carol McGowan The Summit Fire Department, along with the Village of Summit, and the Argo Summit Lions Club held a blood drive this past Saturday, and it drew a crowd that even impressed the American Red Cross. It took place from 9 a.m. until 2 p.m. with non-stop donors walking through the…
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…