Peoples Gas parent to be acquired in $9.1 billion deal
Trending: Utilities are consolidating and getting bigger.
Peoples and North Shore, already part of a utility holding company headquartered in Chicago, are being bought by a Wisconsin-based utility holding company.
NICOR is owned by a utility holding company with its headquarters in Atlanta.
The acquisition of Peoples is following a trend of consolidation of regional utilities. The leading argument for consolidation is that redundant “overhead” costs can be consolidated. What consolidation usually means is that the local utility is no longer local. Remember that Peoples, NICOR, and ComEd are not competitive companies eking out an unknown profit. They have a monopoly (much like the game!) where they get to recover their set profit margin on expenses incurred in providing their essential service. That is to say, the more they spend on providing their service, the more profit they make which is why regulators approve their costs.
So consolidation means what? Typically, regionalized services by utilities means a loss of stable local jobs accompanied by higher costs. Remember it’s not a competitive industry. They get a regulated return for delivering energy. That’s why reducing costs does not translate to lower energy costs (note; if they spend less, they make less profit). Consolidating accounting, customer service, and management typically results in longer wait times, longer outage times, and higher returns to corporate shareholders.
The good news is that you do have competition for your energy services. Realgy Energy Services offer electric and natural gas service that is consistently below the utility. We compete for your business, by saving you money. And we do enjoy competing with bigger utilities!
Read the full Chicago Sun-Times article: “Wisconsin Energy buying Peoples Gas parent Integrys for $9.1 billion”.
Peoples/North Shore Gas Rate-Hike Request
Following on the heels of the highest gas bills in 10 years, the utility adds insult to injury with an increase in rates for delivery. Realgy agrees with CUB that the timing of this increase is insensitive at best and discouraging for many struggling with current bills.
This increase would cover the delivery service and doesn’t even address the coming increase that will be necessary by the utility for this winter’s costs.
Realgy joins CUB in challenging Peoples Gas and North Shore in order to understand the need and the reasons for the proposed increase.
We understand that investments are needed to ensure delivery and maintenance. However this winter has shown that expansion for storage facilities to provide some relief from short-term price increases would be prudent.
Peoples Gas/North Shore operates a regulated monopoly (with no competition) as opposed to your natural gas service competition; therefore the only supervision to what they charge comes from the ICCC and from interested parties (such as CUB, Realgy, and every customer).
Realgy will post messages as this rate increase unfolds and provide help in offering comments to the ICC as they review the rate increase request.
Check out the whole Citizens Utility Board Article “Statement by Citizens Utility Board (CUB) Executive Director David Kolata on the Peoples/North Shore Gas Rate-Hike Request”
Storage Season is here!
The natural gas you have stored starting April 1st running through October 31st will begin to be added into your monthly natural gas usage from November 1st through March 31st.
You have probably noticed your summer bills were a little higher than normal, this is because Realgy Energy Services has been storing 20% of your natural gas annual usage at the lower summer rates, to be used during the winter months when the demand and more importantly the pricing for natural gas historically increase.
You may be asking do I have natural gas in storage, and if so how much?
If you are a customer of Realgy Energy Services and you live in Indiana or Illinois and are services by one of the following Utilities: Nicor, Nipsco, North Shore and Peoples Gas.
You most likely have natural gas in storage.
To find out how much natural gas you have in storage you can either:
Log into your account and view your account summary
Call one of our customer services representatives at (877) 300 6747
Enjoy the saving that the Realgy Energy Services Storage Program provides and have a wonderful toasty warm winter!
Realgy Energy Services Now Offering Natural Gas Services to Residential Illinois Customers
PRESS RELEASE 21 SEPTEMBER 2012 | By: Realgy, LLC
At their customers’ request Realgy Energy Services is now serving Illinois residential natural gas customers.
The president of Realgy, Michael Vrtis has announced that the Illinois Commerce Commission has given authorization to extend service to residential customers in the North Shore, Peoples, and Nicor service territories. Realgy was previously authorized to service only retail commercial natural gas accounts in Illinois.
“Our expansion into the residential natural gas market is the next logical step in Realgy’s plans to expand service to our customers in the Illinois energy market,” said Vrtis. “It’s the perfect complement to extend our existing Illinois electric service. This expansion will give all residential and commercial customers in Illinois a chance to save money on both their natural gas and electricity.”
Realgy Energy Services is an energy marketer serving retail and residential customers in Indiana, Illinois and Michigan. They have been serving Illinois customers beginning in 2004; since that time they have had a perfect record (certified A+) with the Better Business Bureau; and have been recognized as an Inc 500 company in 2011 and 2012.
Contact:
Realgy, LLC
Michael Vrtis
675 Oakwood Avenue
West Hartford, CT
860-233-2270
www.realgyenergyservices.com