What does Nicor get out of doing this with Ambit Energy?
Nicor continues to have a monopoly on the distribution and transmission of the natural gas throughout its entire system. Nicor is required by state legislation to allow other alternative gas suppliers into their territory. In fact all of the current increases that Nicor has applied to the ICC to receive have all been on the distribution and transmission of natural gas. So quite honestly, Nicor is in support of what we are doing because it allows them to increase their prices on the monopoly part of their business which is delivery and transmission and that drives additional profits to their corporation.Additionally, Nicor Advanced Energy (the “default” gas supplier) is an affiliate of Nicor Gas, but they are separate companies. Even though Nicor Gas (the distribution company) can not make a profit on the actual gas they “distribute”, Nicor Advanced Energy (the “default” gas supplier of Nicor Gas customers) can make a profit.
