Public Utilities Advisory Board Meeting - February 27, 2025

The Public Utilities Advisory Board (PUAB) of Naperville met on February 27, 2025, at 5:05 PM in Council Chambers. The meeting featured water and electric utility reports, a presentation from the Illinois Municipal Electric Agency (IMEA), and public comments focused on IMEA's proposed contract extension, power supply costs, and environmental concerns.

Consent Calendar

• Approval of November 7, 2024 Meeting Minutes: Motion by Michelle Ackmann, second by Philip Schrieber. Passed unanimously.

Public Comments & Testimony

• Greg Hubert (Clean Energy Alliance of Naperville): Requested PUAB ask IMEA for public presentations on IMEA's ownership of Prairie State and Trimble County coal plants and its role as agent in PJM markets. He stated that Naperville's share of expenses and debt service represents over half of the $100 million annual power supply cost from IMEA, and called for greater transparency.
• Ted Bourlard (NEST co-chair): Argued that IMEA is not responsible for reliability; rather, the PJM grid and Naperville's underground power lines provide reliability. He noted that Prairie State is the #1 greenhouse gas polluter in Illinois and #7 in the nation, and urged reducing coal use.
• Joe Haas (NEST member): Criticized IMEA's contract extension, claiming it lacks lower rates, clean power, and exit options. He said the contract locks Naperville in for 10 years, prohibits peak shaving, and would cost ratepayers. He referenced a Tribune article calling the coal plant a "costly nightmare" and noted that all City Council candidates oppose the early extension.
• Eric Johnson (Naperville resident): Advocated for cost-reflective tariffs to incentivize EV charging during optimal times, residential solar usage shifting, and commercial solar adoption. He noted that IMEA's contract forbids demand charge shaving with batteries, which he said limits cost savings.

Reports

• Water Utility Reports (F1-F5): Director Darrel Blenniss presented the SAIDI dashboard, showing a 27% reduction in outage duration (from 6.28 to 4.59 minutes). The Springbrook Effluent Report indicated no violations, no hydraulic exceedance, but missing two months of data due to a server upgrade. Water consumption in 2024 was higher than historical averages, with system storage of four days. The financial report showed revenues at 98% of budget, expenditures at 84%, an operating reserve of 67 days (target 30), $14.5 million unrestricted cash, and $20 million restricted for phosphorus reserves. New rates took effect January 1, 2025. All reports were received by motion (Brandon Hoeft, second Philip Schrieber, passed).
• Electric Utility Reports (F6-F11): Director Brian Groth presented the year-end financial summary, noting declining cash addressed by the 2024 rate study and a planned 2025 bond issuance. The capital program came in under budget due to material lead times. The reliability report showed SAIDI flat at 24 minutes; SAIFI increased due to a substation outage. Electric vehicle count reached 5,562. Solar installations are growing; a new net metering program effective April 1, 2025 removes capacity caps. IMEA purchases decreased by 2%. The LED switch replacement program and thermostat rebates were highlighted. All reports were received by motion (Philip Schrieber, second Michelle Ackmann, passed).

Presentation: Illinois Municipal Electric Agency (IMEA)

• IMEA representatives (Staci Wilson, Rakesh Reddy Kothakapu, Troy Foder) presented the agency as a nonprofit joint action agency serving 32 municipalities. They highlighted an A+ / AA- financial rating, value-added services (energy efficiency incentives, EV infrastructure, power supply scheduling, RTO engagement), and a resource portfolio of 1,007 MW, including 262 MW carbon-free. IMEA owns 15.17% of Prairie State and 12.12% of Trimble County. A sustainability plan targets 2050 net zero, with milestones including 45% CO2 reduction by 2035-2038 under CEJA and plant retirements by 2045-2050. The board recently approved a 150 MW solar PPA (B Hollow) at ~$75/MWh, enabled by 25 members signing contract extensions. IMEA stressed that the contract extension provides long-term certainty needed for renewable investments, and that debt payoff in 2035 will reduce rates by ~25%. They also noted that Naperville is saving $32 million in 2025 due to avoided capacity price increases.

Discussion Items

• Board members questioned IMEA on specific costs: Prairie State generation cost ~$30/MWh, with debt service adding $35-50/MWh for Prairie State and $15/MWh for Trimble. B Hollow solar is fixed at $75/MWh for 20 years. Capacity market implications were discussed, including the 800% increase in PJM capacity prices. Board members asked about the contract timeline: Troy Foder clarified there is no option to wait until 2030; the extension deadline is April 30, 2025, and delaying could result in higher costs. The impact of Naperville leaving IMEA would leave the agency slightly long on power, but would reduce the scale of renewable procurement. Members expressed concerns about the pace of decarbonization versus cost, and the need for due diligence through the upcoming CES consultant report.
• Board member Jim Fillar, with extensive energy industry experience, led a detailed analysis of coal vs. solar costs, capacity accreditation challenges, and the value of IMEA's owned resources in a tightening market. He noted that NERC has placed MISO in a high-risk area for electricity shortfalls, and that PJM capacity prices are a signal of future scarcity. He concluded that IMEA's coal assets provide a hedge against rising market prices.

Key Outcomes

• Approved November 7, 2024 meeting minutes.
• Received water utility reports (F1-F5) and electric utility reports (F6-F11) by unanimous votes.
• Received IMEA presentation (F12) as information.
• Chairman Halkias announced that a special PUAB meeting will be held on March 6, 2025, to receive the CES consultant report on procurement options. The board packet will be published on Monday, March 3.
• The meeting adjourned at approximately 8:00 PM.