Council should approve energy contract

The Naperville City Council is facing a critical Aug. 19 deadline to renew or reject the new IMEA contract for another 20 years. IMEA is a not-for-profit member directed energy supplier representing 32 communities.

If the new contract is ratified, Naperville will secure stable and affordable electric supply for future years. If rejected, it will be necessary to purchase electric energy on the open market. This will undoubtedly result in significantly higher prices, especially if only zero carbon options are chosen.

It is estimated that costs could increase 400% to 500%. IMEA opponents will not shut down the clean coal power plants, but they will burden Naperville with runaway electric costs. Naperville will also forfeit the accumulated power plant bond payments estimated at $650 million to date and give up the reduced electric rates that will result from the construction bonds payoff by 2035.

A provision option tied to the new contract allows Naperville to utilize the “Member Directed Resource” (MDR) to purchase 26% of zero-carbon energy. In addition, this provision can be “moved forward” immediately into the current contract. This is an opportunity to supplement the current energy profile with 26% of zero-carbon sourcing. We refer to this as a hybrid energy profile that combines modern clean coal production with green energy as Naperville transitions to zero-carbon sourcing by 2045. This date will be in compliance with CEJA which requires public-owned greenhouse gas-emitting generation facilities to move to zero carbon by 2045.

The uncertainty of green energy capacity, rising electric demand due to expanding AI centers and higher projected green energy costs create a very volatile market. This can all be avoided by re-signing the IMEA non-profit contract, which will keep costs stable, provide consistent electric supply while avoiding spot market chaos with power marketer's offering profit motivated electric supply options.

Therefore, Naperville's city council is encouraged to sign the new IMEA contract.

Michael J. Lapinski

Naperville