energy Archives - Skyline Newspaper

By Skyline Newspaper February 16, 2015 9 years 309 words

Nicor Gas to Spearhead $2 Billion Chicago Gas Line Replacement Project

Nicor Gas will soon undertake a massive $2 billion, nine-year pipe replacement project that will give a much-needed upgrade to about 1,000 miles of aging gas lines throughout suburban Chicago. According …


Nicor Gas will soon undertake a massive $2 billion, nine-year pipe replacement project that will give a much-needed upgrade to about 1,000 miles of aging gas lines throughout suburban Chicago. According to a February 11 Crain’s Chicago Business article, the program will be funded through surcharges placed on natural gas utility users’ monthly bills. For the average residential consumer, this surcharge will amount to about a dollar per month. Nicor’s announcement arrives at a time when skepticism continues to mount over a similar project. The estimated cost of Peoples Gas’s program to replace 1,700 miles of gas mains within the city of Chicago has more than doubled in the last five years. This has led Mayor Rahm Emanuel and Illinois Attorney General Lisa Madigan to cite Peoples Gas for mismanagement, and an audit of the company’s program has been commissioned. Because of Peoples Gas’s gaffe, Nicor President Beth Reese says there is more pressure for her company to finish its project within budget. If Nicor succeeds at staying within budget, the average natural gas consumer will see monthly bills about $10 higher than they are now when the project is finished in 2023. In 2015, Nicor will work to replace about 125 miles of suburban Chicago’s old cast-iron and bare steel pipes with polyethylene and treated steel. Work will take place throughout the municipalities of Aurora, Evanston and Oak Park. Additionally, about 90% of the gas mains in Elmwood Park are slated for replacement this year. The oil and natural gas industry is one of the U.S. economy’s largest, employing about 9.8 million people and representing 8% of the overall economy. Nicor expects to hire an additional 500 internal and contract workers this year, with the number projected to grow in later years as the project continues, Crain’s Chicago Business reports. “We’re not at our peak by any stretch,” Reese explained.

Nicor Gas will soon undertake a massive $2 billion, nine-year pipe replacement project that will give a much-needed upgrade to about 1,000 miles of aging gas lines throughout suburban Chicago.

According to a February 11 Crain’s Chicago Business article, the program will be funded through surcharges placed on natural gas utility users’ monthly bills. For the average residential consumer, this surcharge will amount to about a dollar per month.

Nicor’s announcement arrives at a time when skepticism continues to mount over a similar project. The estimated cost of Peoples Gas’s program to replace 1,700 miles of gas mains within the city of Chicago has more than doubled in the last five years. This has led Mayor Rahm Emanuel and Illinois Attorney General Lisa Madigan to cite Peoples Gas for mismanagement, and an audit of the company’s program has been commissioned.

Because of Peoples Gas’s gaffe, Nicor President Beth Reese says there is more pressure for her company to finish its project within budget. If Nicor succeeds at staying within budget, the average natural gas consumer will see monthly bills about $10 higher than they are now when the project is finished in 2023.

In 2015, Nicor will work to replace about 125 miles of suburban Chicago’s old cast-iron and bare steel pipes with polyethylene and treated steel. Work will take place throughout the municipalities of Aurora, Evanston and Oak Park. Additionally, about 90% of the gas mains in Elmwood Park are slated for replacement this year.

The oil and natural gas industry is one of the U.S. economy’s largest, employing about 9.8 million people and representing 8% of the overall economy. Nicor expects to hire an additional 500 internal and contract workers this year, with the number projected to grow in later years as the project continues, Crain’s Chicago Business reports.

“We’re not at our peak by any stretch,” Reese explained.

By Skyline Newspaper January 6, 2015 10 years 523 words

Spurred by New Policies and Opportunities, Illinois’ Energy Landscape May Change in 2015

Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production …


Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production and wind energy. “By year-end, the state could see an oil boom downstate, nuclear plants on the chopping block and forward momentum for a wind-power superhighway to carry wind-generated electricity from Iowa into Illinois,” Wernau reported. Oil and Gas Drilling There have been nearly two years of debates and legal battles over horizontal hydraulic fracturing — better known as fracking — in the state, but Illinois lawmakers have succeeded in codifying regulations for the industry in the hopes that tax revenues will mitigate budgetary woes statewide. The fracking process, which involves violently fracturing shale in order to extract oil and natural gas, is controversial among environmental activists. But each well could result in $725,508 in taxes over 10 years, assuming an oil price of $85 per barrel. Currently, oil prices are sitting at a much lower rate of $55 per barrel. It’s unclear exactly how many rigs will pop up in the next year, but it’s likely that Southern Illinois will see at least some new permits issued. Nuclear Power The fate of nuclear power in Illinois is unclear, and Wenau predicts that “All eyes will be on Chicago-based Exelon as it decides what to do about its financially troubled fleet of nuclear power plants.” The energy giant has struggled to compete at the prices set by wind- and natural gas-generated power. Exelon is putting pressure on policymakers to reward its ability to produce electricity without carbon emissions, especially as the Environmental Protection Agency has set the ambitious goal to reduce greenhouse gases 30% (measured from 2005 levels) by 2030. Closing even one Exelon plant would put Illinois behind its goals. The company has said that three — half — of its plants may be closed for financial reasons. That hasn’t stopped Exelon from planning for the future, however; starting early this year, the company will begin to roll out an app to help employees manage their careers. It was developed, a company spokesperson said, in response to employee uncertainty about advancement and promotion pathways. Wind Power Distribution 2015 will likely see progress on a 500-mile “wind-power superhighway” that would transmit wind-generated electricity from Iowa into Grundy County, IL. The $2 billion line, called the Rock Island Clean Line, was approved last year. It could lead to a drop in electricity prices across the state, as well as helping Illinois to meet its goal to derive 25% of its energy from renewable sources by 2025. Because Illinois has had a deregulated energy market since the late 1990s, consumers can already choose their electricity suppliers and use only sustainably created power if they so desire. Energy deregulation breaks up the monopolies held by utility companies by dividing energy production from energy distribution; Illinois residents can choose from a wide range of energy suppliers, though electricity is delivered through the public utility company regardless of where it comes from. According to data from Power 2 Switch, only 0.8% of Illinois homeowners currently choose a “completely green” electricity supplier. About 16.4% choose a “partially green” supplier, while 82.8% use traditional suppliers.

Illinois may see “dramatic” changes in its energy outlook in 2015, Julie Wernau of the Chicago Tribune wrote Dec. 23, with policy changes opening and closing various doors regarding fracking, nuclear power production and wind energy.

“By year-end, the state could see an oil boom downstate, nuclear plants on the chopping block and forward momentum for a wind-power superhighway to carry wind-generated electricity from Iowa into Illinois,” Wernau reported.

Oil and Gas Drilling
There have been nearly two years of debates and legal battles over horizontal hydraulic fracturing — better known as fracking — in the state, but Illinois lawmakers have succeeded in codifying regulations for the industry in the hopes that tax revenues will mitigate budgetary woes statewide.

The fracking process, which involves violently fracturing shale in order to extract oil and natural gas, is controversial among environmental activists. But each well could result in $725,508 in taxes over 10 years, assuming an oil price of $85 per barrel. Currently, oil prices are sitting at a much lower rate of $55 per barrel.

It’s unclear exactly how many rigs will pop up in the next year, but it’s likely that Southern Illinois will see at least some new permits issued.

Nuclear Power
The fate of nuclear power in Illinois is unclear, and Wenau predicts that “All eyes will be on Chicago-based Exelon as it decides what to do about its financially troubled fleet of nuclear power plants.”

The energy giant has struggled to compete at the prices set by wind- and natural gas-generated power.

Exelon is putting pressure on policymakers to reward its ability to produce electricity without carbon emissions, especially as the Environmental Protection Agency has set the ambitious goal to reduce greenhouse gases 30% (measured from 2005 levels) by 2030.

Closing even one Exelon plant would put Illinois behind its goals. The company has said that three — half — of its plants may be closed for financial reasons.

That hasn’t stopped Exelon from planning for the future, however; starting early this year, the company will begin to roll out an app to help employees manage their careers. It was developed, a company spokesperson said, in response to employee uncertainty about advancement and promotion pathways.

Wind Power Distribution
2015 will likely see progress on a 500-mile “wind-power superhighway” that would transmit wind-generated electricity from Iowa into Grundy County, IL. The $2 billion line, called the Rock Island Clean Line, was approved last year.

It could lead to a drop in electricity prices across the state, as well as helping Illinois to meet its goal to derive 25% of its energy from renewable sources by 2025.

Because Illinois has had a deregulated energy market since the late 1990s, consumers can already choose their electricity suppliers and use only sustainably created power if they so desire. Energy deregulation breaks up the monopolies held by utility companies by dividing energy production from energy distribution; Illinois residents can choose from a wide range of energy suppliers, though electricity is delivered through the public utility company regardless of where it comes from.

According to data from Power 2 Switch, only 0.8% of Illinois homeowners currently choose a “completely green” electricity supplier. About 16.4% choose a “partially green” supplier, while 82.8% use traditional suppliers.