Naperville city officials are seeking a clear timeline and a broader range of options as they plan for the city’s electricity supply beyond 2035, when its current contract with the Illinois Municipal Electric Agency (IMEA) expires. The move comes after the City Council paused negotiations with IMEA last month, prompting questions about the future of Naperville’s power sources, and costs.
The council directed staff Tuesday to develop a roadmap identifying key deadlines for evaluating IMEA, exploring alternative suppliers, and assessing potential risks related to transmission and capacity. Mayor Scott Wehrli emphasized the urgency of the situation, stating, “We cannot afford to drift through this process.” He underscored the need to understand how delays could impact the city’s negotiating leverage and the price of electricity for residents and businesses.
The current contract with IMEA, a not-for-profit joint action agency comprised of 32 municipal electric systems, has provided stable energy pricing to Naperville for the past 17 years, according to the city’s website. The IMEA began supplying the city with energy in 2011, and the existing agreement extends through September 30, 2035.
But, IMEA recently proposed extending the contract to 2055, an offer accepted by 29 of its 32 member municipalities. Naperville’s council paused those negotiations in January, citing concerns about potential limitations on future energy choices and a desire to explore alternatives. A key concern for some council members is IMEA’s continued reliance on coal-generated power, with the agency not planning to reduce its coal power before 2038, as state law requires.
Council members expressed a desire to understand the full spectrum of options available to Naperville, including those outside of the IMEA framework. Councilwoman Supna Jain stated, “For me, specifically, I want to see non-IMEA options. I think we know IMEA and we’ve kind of discussed that and gotten to a point where there wasn’t a meeting of minds, despite a lot of resources and time being dedicated to it.”
Defining Energy Goals for the Future
Beyond identifying potential suppliers, the Naperville City Council similarly acknowledged the need to establish clear, long-term goals for the city’s energy future. Councilman Ian Holzhauer argued that assessing electricity options without defined objectives is unproductive, comparing it to “going to a car dealer and saying, ‘I have no idea what type of car I want. You tell me what are the three best options for me and I’ll consider that.’”
Holzhauer suggested setting specific targets, such as reducing carbon emissions by a certain percentage or limiting annual price increases. He noted that the city has not previously articulated such goals, hindering effective planning. The council agreed to hold a workshop outside of regular meetings to determine these objectives.
IMEA Contract and Control Over Power Supply
Extending the IMEA contract would lock Naperville into a long-term agreement until 2055, limiting its ability to choose alternative power sources, except to a limited extent. According to a Q&A published by Clean Energy Naperville, even with weighted voting, Naperville does not have a controlling vote within IMEA. Choosing a different supplier would grant Naperville greater control over the term of the contract and the sources of its power, potentially allowing for the integration of new technologies and self-supply options.
The question of cost remains a significant factor. While IMEA charges for power on a cost-plus basis, making it hard to predict future rates, other suppliers also face uncertainty in forecasting long-term pricing. The city’s current negotiations with IMEA, which began nearly two years ago, focused on provisions for a potential future contract rather than the proposed extension to 2055.
Next Steps for Naperville
City staff will now compile a timeline outlining critical decision dates and present a range of electricity options for Naperville beyond 2035. This information will be presented at future council meetings. The separate workshop dedicated to defining the city’s energy goals will also be scheduled in the coming weeks.
Wehrli cautioned that pausing negotiations with IMEA does not halt external factors influencing the energy market. “I also want to note that while council voted to pause negotiations with IMEA, that vote did not pause the markets, regulatory change or the timeline that we are up against. The clock is still moving,” he said.
The city’s exploration of alternative energy sources and the establishment of clear goals signal a proactive approach to securing a sustainable and cost-effective electricity supply for Naperville’s future. Residents can find updates on the city’s progress on the City of Naperville website.
This story is developing and will be updated as more information becomes available.
