Cost over coal? Naperville and St. Charles consider 20-year contract extension for energy needs

Electricity needs for Naperville and St. Charles — and the type of energy residents will use — are at the heart of a debate as both cities decide whether to sign on for another 20 years with the Illinois Municipal Electric Agency.

Both are part of the group of 32 municipalities that purchase power in bulk to distribute to their residents. The current contract expires in 2035, but IMEA has asked its members to sign a 20-year contract extension as it works to secure power to meet the future needs of its members.

With an Aug. 19 deadline looming, St. Charles and Naperville are among three member communities that have not signed on. Winnetka, the only other Chicago suburb in the IMEA, agreed to the contract extension in July.

Both Naperville and St. Charles have meetings scheduled on July 28, with the Naperville City Council discussing the contract in a workshop session and St. Charles’ government operations committee discussing the issue.

Naperville Councilman Josh McBroom has won support to have a vote on the contract placed on the Aug. 19 agenda. St. Charles Mayor Clint Hull also expects to have a vote on the pact in August.

“We’re working really hard at it,” said Hull, who convened a special committee shortly after his election in April to review energy options.

Some residents of St. Charles and Naperville have raised concerns about IMEA’s reliance on Prairie State Energy, a coal-fired plant in southern Illinois.

During a city council meeting last week in Naperville, several high school students and members of the Naperville Environment and Sustainability Task Force (NEST) voiced concern about the pollutants from coal-fired plants and their future if Naperville continues to support coal as an energy source.

“I want to be proud of not just our schools and our community but our city’s courage to lead by example … a city that chooses clean energy because it honors the values of sustainability, innovation and care for future generations to come,” said Rakshita Ruparel, a rising senior at Naperville North High School and member of Naperville District 203’s carbon action plan steering committee.

NEST members oppose the contract extension. They argue that it lacks transparency and locks Naperville into electricity rates for 20 years without competition.

Proponents of the extension, however, argue that IMEA offers the cleanest energy portfolio option for the city.

With member directives, which allow member communities to purchase up to 10% of their own power, and a new solar project coming online, IMEA can offer up to 45% of its energy from clean sources by 2027, said Louis Halkias, chairman of Naperville’s public utility advisory board.

The panel held a series of public workshops and recommended approval of the contract extension.

Halkias and others also noted that IMEA provides more reliable service at a lower cost.

Brian Groth, Naperville’s electric utility director and the city’s representative on the IMEA board, says the typical June electric bill from IMEA was roughly $115 this year. That same bill would have been about $171 from ComEd, he said.

“It is difficult to understand why we would walk away from lower-cost electricity,” Naperville resident Michael Lapinski told city council members last week.

Naperville City Councilman Ian Holzhauer has questioned the urgency of signing a deal now, considering that the existing contract does not expire until 2035. He also questions why the city has not considered other options.

“All that’s been evaluated so far is one unsolicited proposal from a coal power vendor … there has been a lack of vision,” he said. “I would never make a major purchase without considering competing bids.

“I think Naperville should make a decision on its own timeline based on when they will get the most competitive bids,” he added.

McBroom, however, argues the city needs to take IMEA’s deadline seriously.

IMEA initially requested a decision by April 30. But at its June meeting, the agency agreed to extend the option until Aug. 19.

At that June meeting, board members made it clear Aug. 19 was a firm date, said Staci Wilson, vice president of government affairs and member services for IMEA.

McBroom said recent changes in state law require energy providers to have net-zero carbon emissions by 2050. If Naperville wants to go it alone or switch providers, he said, the city will need time to navigate the new requirements and find providers.

“We are going to be entering the most treacherous energy supply market in Illinois history,” McBroom said. “The urgency is if we decide that we don’t want to be a part of IMEA, it could take a decade for Naperville to plan and build infrastructure to become a power purchaser in the market.”