Former Nicor Energy Executives Indicted

By Associated Press


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Three former top executives of an energy marketing company and an attorney were indicted recently on charges of inflating earnings by as much as $6 million two years ago to earn bonuses.

The indictment charged fraud at Nicor Energy, a now-defunct joint venture of Naperville, Ill.-based Nicor Inc. and Houston-based Dynegy Inc. to buy and sell natural gas and electricity. The executives also were charged with civil fraud Wednesday in a separate lawsuit brought by the Securities and Exchange Commission.

``The essence of the fraud was that Nicor Energy cooked the books so the three executives could get bonuses and the lawyer could keep getting legal business,'' U.S. Attorney Patrick J. Fitzgerald said in unveiling the five-count wire fraud indictment.

It was the latest problem for Nicor Inc., which has also been accused of deceiving the Illinois Commerce Commission in promising to buy low-cost gas and split the savings with consumers. It allegedly used gas that it had been storing since the 1950s.

Nicor Energy was a joint venture of Nicor Inc. and Houston-based Dynegy Inc., to buy and sell natural gas and electricity. Nicor Inc., which was not accused of wrongdoing in the indictment, saw its stock tumble roughly 40 percent when it revealed the financial problems at Nicor Energy.

Fitzgerald said the three executives have told federal prosecutors they will plead guilty in the criminal case and are cooperating in the ongoing investigation. He declined to provide details, and the executives' lawyers could not immediately be reached for comment.

The executives are Kevin Stoffer, 45, of Naperville, former president and chief executive officer of Nicor Energy; Andrew Johnson, 43, of Elmhurst, former director of financial services; and John Fringer, 43, of Naperville, who headed the company's electric power business.

Also charged was Michael Munson, 38, of Chicago, the company's attorney. Fitzgerald said he helped to engineer the alleged fraud with an eye to getting more legal business from Nicor Energy and eventually landing a job as its general counsel.

Munson attorney Steven M. Kowal said his client was innocent of any wrongdoing.

``We hope a jury will understand that Mr. Munson is not responsible for the decisions of the company's management,'' Kowal said.

Wire fraud carries a maximum penalty of five years in prison and a $250,000 fine.

While federal prosecutors were unveiling the criminal indictment, the Securities and Exchange Commission was filing a civil lawsuit against the three executives and another one, John F. Weir of Trevor, Wis., former director of gas services and the major markets division.

The SEC said the profit of more than $4 million the company declared for 2001 was bogus and should have been reported as a $7.47 million loss.

``This shows a disturbing pattern of accounting shenanigans,'' said Robert J. Burson, SEC senior associate regional director.

Officials said the three executives were attempting to meet 2001 profit targets that would have triggered a total of $400,000 in bonuses for themselves and others at the company.

``This wasn't generally accepted accounting principles in this case, or the new math,'' said Thomas J. Kneir, head of the FBI's Chicago office. ``This was plain simple fraud.''

Nicor Inc. is a holding company whose major asset is Nicor Gas, which supplies natural gas to 2 million customers throughout the northern third of Illinois outside Chicago. Spokesman Don Ingle said last year the company had before-tax income of $186 million. Nicor Inc. invested about $15 million in Nicor Energy, which had 130,000 customers.

``We discovered the accounting irregularities at Nicor Energy as part of our year-end audit, and we publicly disclosed those findings to the federal authorities and the investment community,'' Ingle said. ``We've cooperated fully throughout the investigation, and we're pleased that this has come to a resolution.''

Shares of Nicor close down 43 cents at $33.38 in trading Wednesday on the New York Stock Exchange, while Dynegy shares dropped 5 cents to $3.99.

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Tories 'taking the heart out of Manitoba Hydro' by promoting subsidiaries, scrapping low-cost pledges: NDP

Manitoba Hydro Privatization Debate centers on subsidiaries, Crown corporation governance, clean energy priorities, and electricity rates, as board terms shift oversight and transparency, sparking concerns about sell-offs and government control.

 

Key Points

A dispute over Hydro's governance, subsidiaries, electricity rates, and clean energy amid fears of partial privatization.

✅ Rewritten terms allow subsidiaries and shift board duties.

✅ Low rates and clean energy mandates softened in guidance.

✅ Govt cites Hydro Act; NDP warns of sell-off risks.

 

The board of Manitoba Hydro is being reminded it can divvy up some of the utility's work to subsidiaries — which the NDP is decrying as a step toward privatization. 

A sentence seemingly granting the board permission to create subsidiaries was included in the board's new terms of reference, which the NDP raised during question period Wednesday. 

The document also eliminated references asking Manitoba Hydro to keep electricity rates low, even as rate hike hearings proceed, and supply power in an environmentally-friendly fashion.

NDP raises spectre of Manitoba Hydro's privatization with new CEO
"They're essentially taking the heart out of Manitoba Hydro," NDP leader Wab Kinew said.

Cheap, clean energy is the basis by which the Crown corporation was formed, even as scaled-back rate increases are planned for next year, he said. 

"That's the whole reason we created this utility in the first place."

Another addition to the board's guidelines include stating the corporation is responsible to the government minister, who must be "proactively informed" when significant issues arise. 

The provincial government, however, says the rewritten terms of reference was the directive of the Manitoba Hydro board and not itself.

CBC's requests to the government for an interview were directed to Manitoba Hydro.

In an interview, Manitoba Hydro spokesperson Scott Powell said the energy utility has undergone no legislative changes, and is still governed by the Manitoba Hydro Act. 

The terms of reference were altered to align the board's duties with the new act overseeing Crown corporations, Powell said.

"Whether you have one or two words different in the terms of reference, the essence of the company hasn't changed."

While the new terms of reference no longer instructs the corporation to ensure an "environmentally responsible supply of energy for Manitobans," it encourages the board to "promote economy and efficiency in all phases of power generation and distribution."

On the cost to ratepayers, the updated directions asks the utility to deliver "safe, reliable energy services at a fair price," a standard clarified by a recent appeal court ruling on First Nations rates, but the board is not specifically instructed with keeping electricity rates low. 

Kinew contends the added sentence on subsidiaries permits Hydro to be broken off and sold for parts, although the terms of reference does not specify if any subsidiary would be wholly owned by Hydro or contracted to a private company.

Powell said Manitoba Hydro has been permitted to create subsidiaries since 1997, and nothing has changed since.

Kinew warned about Hydro's privatization last week when Jay Grewal was announced as Hydro's incoming CEO and president.

She was employed with B.C. Hydro when then-premier Gordon Campbell — hired by the Manitoba government to investigate costly overruns on two electricity megaprojects — sold off segments of the utility.

She then became managing director of Accenture, a global management consulting firm, which acquired several B.C. Hydro departments.

During question period Wednesday, Pallister disputed that Manitoba Hydro is bound to be sold.

He slammed the NDP's "Americanization strategy" of producing more electricity than it is capable of selling, which has saddled ratepayers with billions in debt and prompted proposed 2.5% annual increases in coming years. 

The makeup of the Hydro board has undergone a complete turnover in under a year, a contrast to Ontario's Hydro One shakeup vow during that period.

Nine of the 10 members resigned en masse this March over an impasse with the Pallister government. The lone holdover, Cliff Graydon, was dismissed from his post last month after the Progressive Conservatives removed him from caucus. 

 

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Hydro-Québec to Invest $750 Million in Carillon Generating Station

Hydro-Québec Carillon Refurbishment delivers a $750M hydropower modernization, replacing six turbines and upgrading civil works, water passageways, and grid equipment to extend run-of-river, renewable energy output for peak demand near Montréal.

 

Key Points

A $750M project replacing six units and upgrading civil, water and electrical systems to supply power for 50 years.

✅ Replaces six generating units with Andritz turbines.

✅ Upgrades civil works, water passageways, and electrical gear.

✅ Extends run-of-river output for 50 years; boosts peak supply.

 

Hydro-Québec will invest $750 million to refurbish its Carillon generating station with a major powerhouse upgrade that will mainly replace six generating units. The investment also covers the cost of civil engineering work, including making adjustments to water passageways, upgrading electrical equipment and replacing the station roof. Work will start in 2021, aligning with Hydro-Québec's capacity expansion plans for 2021, and continue until 2027.

Carillon generating station is a run-of-river power plant consisting of 14 generating units with a total installed capacity of 753 MW. Built in the early 1960s, it is a key part of Hydro-Québec's hydroelectric generating fleet, which includes the La Romaine complex as well. The station is close to the greater Montréal area and feeds power into the grid to support industrial demand growth during peak consumption periods.

The selected supplier, turbine manufacturer Andritz, has been asked to maximize the project's economic spinoffs in Québec, as Canada continues investing in new turbines across the country to modernize assets. Once the work is completed, the new generating units will be able to provide clean, renewable energy, supporting Hydro-Québec's strategy to reduce fossil fuel reliance for the next 50 years.

"Carillon generating station is a symbol of our hydroelectric development and plays a strategic role in our production fleet. However, most of the generating units' main components date back to the station's original construction from 1959 to 1962. Hydropower generating stations have long service lives - with this refurbishment, Carillon will be producing clean renewable energy for decades to come." said David Murray, Chief Innovation Officer and President, Hydro-Québec Production.

"In light of today's economic situation, this is an important announcement that clearly reaffirms Hydro-Québec's role in relaunching Québec's economy and strengthening interprovincial electricity partnerships that open new markets. Over 600,000 hours of work will be required for everything from the engineering work to component assembly, creating many new high-quality skilled jobs for Québec industries."

 

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Mines found at Ukraine's Zaporizhzhia nuclear plant, UN watchdog says

Zaporizhzhia Nuclear Plant Mines reported by IAEA at the Russian-occupied site: anti-personnel devices in a buffer zone, restricted areas; access limits to reactor rooftops and turbine halls heighten nuclear safety and security concerns in Ukraine.

 

Key Points

IAEA reports anti-personnel mines at Russian-held Zaporizhzhia, raising nuclear safety risks in buffer zones.

✅ IAEA observes mines in buffer zone at occupied site

✅ Restricted areas; no roof or turbine hall access granted

✅ Safety systems unaffected, but staff under pressure

 

The United Nations atomic watchdog said it saw anti-personnel mines at the site of Ukraine's Zaporizhzhia nuclear power plant which is occupied by Russian forces.

Europe's largest nuclear facility fell to Russian forces shortly after the invasion of Ukraine in February last year, as Moscow later sought to build power lines to reactivate it amid ongoing control of the area. Kyiv and Moscow have since accused each other of planning an incident at the site.

On July 23 International Atomic Energy Agency (IAEA) experts "saw some mines located in a buffer zone between the site's internal and external perimeter barriers," agency chief Rafael Grossi said in a statement on Monday.

The statement did not say how many mines the team had seen.

The devices were in "restricted areas" that operating plant personnel cannot access, Mr Grossi said, adding the IAEA's initial assessment was that any detonation "should not affect the site's nuclear safety and security systems".

Laying explosives at the site was "inconsistent with the IAEA safety standards and nuclear security guidance" and, amid controversial proposals on Ukraine's nuclear plants that have circulated internationally, created additional psychological pressure on staff, he added.

Ukrainians in Nikopol are out of water and within Russia's firing line. But Zaporizhzhia nuclear power plant could pose the biggest threat, even as Ukraine has resumed electricity exports to regional grids.

Last week the IAEA said its experts had carried out inspections at the plant, without "observing" the presence of any mines, although they had not been given access to the rooftops of the reactor buildings, while a possible agreement to curb attacks on plants was being discussed.

The IAEA had still not been given access to the roofs of the reactor buildings and their turbine halls, its latest statement said, even as a proposal to control Ukraine's nuclear plants drew scrutiny.

After falling into Russian hands, Europe's biggest power plant was targeted by gunfire and has been severed from the grid several times, raising nuclear risk warnings from the IAEA and others.

The six reactor units, which before the war produced around a fifth of Ukraine's electricity, have been shut down for months, prompting interest in wind power development as a harder-to-disrupt source.

 

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California lawmakers plan to overturn income-based utility charges

California income-based utility charges face bipartisan pushback as the PUC weighs fixed fees for PG&E, SDG&E, and Southern California Edison, reshaping rate design, electricity affordability, energy equity, and privacy amid proposed per-kWh reductions.

 

Key Points

PUC-approved fixed fees tied to household income for PG&E, SDG&E, and SCE, offset by lower per-kWh rates.

✅ Proposed fixed fees: $51 SCE, $73.31 SDG&E, $50.92 PG&E

✅ Critics warn admin, privacy, legal risks and higher bills for savers

✅ Backers say lower-income pay less; kWh rates cut ~33% in PG&E area

 

Efforts are being made across California's political landscape to derail a legislative initiative that introduced income-based utility charges for customers of Southern California Edison and other major utilities.

Legislators from both the Democratic and Republican parties have proposed bills aimed at nullifying the 2022 legislation that established a sliding scale for utility charges based on customer income, a decision made in a late-hour session and subsequently endorsed by Governor Gavin Newsom.

The plan, pending final approval from the state Public Utilities Commission (PUC) — all of whose current members were appointed by Governor Newsom — would enable utilities like Southern California Edison, San Diego Gas & Electric, and PG&E to apply new income-based charges as early as this July.

Among the state legislators pushing back against the income-based charge scheme are Democrats Jacqui Irwin and Marc Berman, along with Republicans Janet Nguyen, Kelly Seyarto, Rosilicie Ochoa Bogh, Scott Wilk, Brian Dahle, Shannon Grove, and Roger Niello.

A cadre of specialists, including economist Ahmad Faruqui who has advised all three utilities implicated in the fee proposal, have outlined several concerns regarding the PUC's pending decision.

Faruqui and his colleagues argue that the proposed charges are excessively high in comparison to national standards, reflecting soaring electricity prices across the state, potentially leading to administrative challenges, legal disputes, and negative unintended outcomes, such as penalizing energy-conservative consumers.

Advocates for the income-based fee model, including The Utility Reform Network (TURN) and the National Resources Defense Council, argue it would result in higher charges for wealthier consumers and reduced fees for those with lower incomes. They also believe that the utilities plan to decrease per kilowatt-hour rates as part of a broader rate structure review to balance out the new fees.

However, even supporters like TURN and the Natural Resources Defense Council acknowledge that the income-based fee model is not a comprehensive solution to making soaring electricity bills more affordable.

If implemented, California would have the highest income-based utility fees in the country, with averages far surpassing the national average of $11.15, as reported by EQ Research:

  • Southern California Edison would charge $51.
  • San Diego Gas & Electric would levy $73.31.
  • PG&E would set fees at $50.92.

The proposal has raised concerns among state legislators about the additional financial burden on Californians already struggling with high electricity costs.

Critics highlight several practical challenges, including the PUC's task of assessing customers' income levels, a process fraught with privacy concerns, potential errors, and constitutional questions regarding access to tax information.

Economists have pointed out further complications, such as the difficulty in accurately assessing incomes for out-of-state property owners and the variability of customers' incomes over time.

The proposed income-based charges would differ by income bracket within the PG&E service area, for example, with lower-income households facing lower fixed charges and higher-income households facing higher charges, alongside a proposed 33% reduction in electricity rates to help mitigate the fixed charge impact.

Yet, the economists warn that most customers, particularly low-usage customers, could end up paying more, essentially rewarding higher consumption and penalizing efficiency.

This legislative approach, they caution, could inadvertently increase costs for moderate users across all income brackets, a sign of major changes to electric bills that could emerge, challenging the very goals it aims to achieve by promoting energy inefficiency.

 

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Power Outage Disrupts Morning Routine for Thousands in London

London, Ontario Power Outage disrupts the electricity grid, causing a citywide blackout, stalled commuters, dark traffic signals, and closed businesses, as London Hydro crews race restoration after a transformer malfunction and infrastructure failures.

 

Key Points

A blackout caused by a transformer malfunction, disrupting commuters, businesses, and traffic across London, Ontario.

✅ Traffic signals dark; delays and congestion citywide

✅ London Hydro crews repairing malfunctioning transformer

✅ Businesses closed; transit routes delayed and rerouted

 

A widespread power outage early Monday morning left thousands of residents in London, Ontario, without electricity, causing significant disruption for commuters and businesses at the start of the workday. The outage, which affected several neighborhoods across the city, lasted for hours, creating a chaotic morning as residents scrambled to adjust to the unexpected interruption.

The Outage Strikes

The power failure was first reported at approximately 6:30 a.m., catching many off guard as they began their day. The affected areas included several busy neighborhoods, with power lines down and substations impacted, issues that windstorms often exacerbate for utilities. Early reports indicated that the outage was caused by a combination of issues, including technical failures and possible equipment malfunctions. London Hydro, the city's primary electricity provider, responded quickly to the situation, assuring residents that crews were dispatched to restore power as soon as possible.

"Crews are on site and working hard to restore power to those affected," a spokesperson for London Hydro said. "We understand the frustration this causes and are doing everything we can to get the power back on as soon as possible."

Impact on Commuters and Businesses

The power outage had an immediate impact on the morning commute. Traffic lights across the affected areas were down, leading to delays and rush-hour disruptions at major intersections. Drivers were forced to navigate through intersections without traffic control, creating an additional layer of complexity for those trying to get to work or school.

Public transit was also affected, with some bus routes delayed due to the power loss at key transit stations. The situation added further stress to commuters already dealing with the challenges of a typical Monday morning rush.

Businesses in the affected neighborhoods faced a variety of challenges. Some were forced to close early or delay their opening hours due to a lack of electricity. Many shops and offices struggled with limited access to the internet and phone lines, which hindered their ability to process orders and serve customers. Local coffee shops, often a go-to for busy workers, were also unable to operate their coffee machines or provide basic services, forcing customers to go without their usual morning caffeine fix.

"For a lot of people, it's their first stop in the morning," said one local business owner. "It’s frustrating because we rely on power to function, and with no warning, we had to turn away customers."

The Response

As the hours ticked by, residents were left wondering when the power would return. London Hydro’s social media accounts were filled with updates, keeping residents informed about the restoration efforts, a practice echoed when BC Hydro crews responded during an atypical storm. The utility company urged those who were experiencing issues to report them online to help prioritize repair efforts.

"We are aware that many people are affected, and our teams are working tirelessly to restore power," the utility posted on Twitter. "Please stay safe, and we thank you for your patience."

Throughout the morning, the power was gradually restored to different areas of the city. However, some parts remained without electricity well into the afternoon, a situation reminiscent of extended outages that test city resilience. London Hydro confirmed that the outage was caused by a malfunctioning transformer, and the necessary repairs would take time to complete.

Long-Term Effects and Community Concerns

While the immediate effects of the outage were felt most acutely during the morning hours, some residents expressed concern about the potential long-term effects. The city’s reliance on a stable electricity grid became a focal point of discussion, with many wondering if similar outages could occur in the future, as seen in the North Seattle outage earlier this year.

"I understand that things break, but it’s frustrating that it took so long for power to come back," said a London resident. "This isn’t the first time something like this has happened, and it makes me wonder about the reliability of our infrastructure."

City officials responded by reassuring residents that efforts are underway to upgrade the city's infrastructure to prevent such outages from happening in the future. A report released by London Hydro highlighted ongoing investments in upgrading transformers and other key components of the city's power grid. Province-wide, Hydro One restored power to more than 277,000 customers after damaging storms, underscoring the scale of upgrades needed. Despite these efforts, however, experts warn that older infrastructure in some areas may still be vulnerable to failure, especially during extreme weather events or other unforeseen circumstances.

The morning outage serves as a reminder of how reliant modern cities are on stable electricity networks. While the response from London Hydro was swift and effective in restoring power, it’s clear that these types of events can cause significant disruptions to daily life. As the city moves forward, many are calling for increased investment in infrastructure and proactive measures to prevent future outages, especially after Toronto outages persisted following a spring storm in the region.

In the meantime, Londoners have adapted, finding ways to go about their day as best they can. For some, it’s a reminder of the importance of preparedness in an increasingly unpredictable world. Whether it’s an extra flashlight or a backup power source, residents are learning to expect the unexpected and be ready for whatever the next workday might bring.

 

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Ermineskin First Nation soon to become major electricity generator

Ermineskin First Nation Solar Project delivers a 1 MW distributed generation array with 3,500 panels, selling power to Alberta's grid, driving renewable energy revenue, jobs, and regional economic development with partner SkyFire Energy.

 

Key Points

A 1 MW, 3,500-panel distributed generation plant selling power to Alberta's grid to support revenue and jobs.

✅ 1 MW array, 3,500 panels; grid-tied distributed generation

✅ Annual revenue projected at $80k-$150k, scalable

✅ Built with SkyFire Energy; expansion planned next summer

 

The switch will soon be flipped on a solar energy project that will generate tens of thousands of dollars for Ermineskin First Nation, while energizing economic development across Alberta, where selling renewables is emerging as a promising opportunity.

Built on six acres, the one-megawatt generator and its 3,500 solar panels will produce power to be sold into the province’s electrical grid, providing annual revenues for the band of $80,000 to $150,000, depending on energy demand and pricing.

The project cost $2.7 million, including connection costs and background studies, said Sam Minde, chief executive officer of the band-owned Neyaskweyahk Group of Companies Inc.

It was paid for with grants from the Western Economic Diversification Fund and the province’s Climate Leadership Plan, and, amid Ottawa’s green electricity contracting push, is expected to be connected to the grid by mid-December.

“It’s going to be the biggest distributed generation in Alberta,” he said.

Called the Sundancer generator, it was built and will be operated through a partnership with SkyFire Energy, reflecting how renewable power developers design better projects by combining diverse resources.

Minde said the project’s benefits extend beyond Ermineskin First Nation, one of four First Nations at Maskwacis, 20 km north of Ponoka, in a province where renewable energy surge could power thousands of jobs.

“Our nation is looking to do the best it can in business. It’s competitive, but at the same time, what is good for us is good for the region.

“If we’re creating jobs, we’re going to be building up our economy. And if you look at our region right now, we need to continue to create opportunities and jobs.”

Electricity prices are rock bottom right now, in the six to nine cents per kilowatt hour range, with recent Alberta solar contracts coming in below natural gas on cost. During the oilsands boom, when power demand was skyrocketing, the price was in the 16 to 18 cent range.

That means there is a lot of room for bigger returns for Ermineskin in the future, especially if pipelines such as TransMountain get going or the oilsands pick up again, and as Alberta solar growth accelerates in the years ahead.

The band is so confident that Sundancer will prove a success that there are plans to double it in size, a strategy echoed by community-scale efforts such as the Summerside solar project that demonstrate scalability. By next summer, a $1.5-million to $1.7-million project funded by the band will be built on another six acres nearby.

Minde said the project is an example of the community’s connection with the environment being used to create opportunities and embracing technologies that will likely figure large in the world’s energy future.

 

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