Public Utilities Advisory Board Meeting - May 29, 2025
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Public Utilities Advisory Board Meeting - May 29, 2025
The Public Utilities Advisory Board (PUAB) met on Thursday, May 29, 2025, at 5:02 PM in the Council Chambers. The meeting included public comments, approval of prior meeting minutes, receipt of multiple reports from water and electric utilities, and presentations on retail electricity supply comparison, green energy certificates, and the Distributed Energy Resource Management System (DERMS). Seven members were present; one was excused.
Public Comments & Testimony
- Dan Bulley (Naperville resident): Expressed involvement in green building and sustainability. Thanked the board for recommending the IMEA contract but asked for professional projections of kilowatt-hour rates under the IMEA contract versus market. He presented his own calculations showing IMEA rates would be lower (e.g., 15¢/kWh vs 19¢/kWh in 2040, 18¢ vs 38¢ in 2050).
- Joe Huss (Naperville resident): Criticized the selection process for the IMEA contract, stating the League of Women Voters and the City's Environment and Sustainability Task Force recommended a rigorous community-involved evaluation. He asked the city to follow its procurement code requiring competitive bidding. He argued that IMEA's sales presentations promised cleaner power but the contract does not include those commitments, and Naperville only gets 3% of IMEA's vote. He urged comparing IMEA to other suppliers of generation and capacity.
Discussion Items
- Approval of April 8, 2025 Meeting Minutes: After discussion regarding letters submitted by a board member, the board approved amended minutes that included a statement clarifying the letters were from individuals, not the board itself. Motion carried unanimously.
- Water Utility Reports (Items 25-0682, 25-0683, 25-0684, 25-0707, 25-0708): Director Daryl Blennis summarized revenue and expenses. Year-to-date revenue ($26.04M) closely matched budget ($26.08M). Operating reserves stood at 86 days (target 30 days). Capital outlay was on track. The SAIDI (System Average Interruption Duration Index) was 7.92 (red, worse than last year) due to 60 water main breaks (vs 32 last year). The water main replacement program is ramping up from 4 miles/year toward 10 miles/year to address a 50-mile backlog. Springbrook influent report showed no abnormalities. Reports were received unanimously.
- Electric Utility Reports (Items 25-0741 through 25-0745): Director Brian Groth presented. Financial summary noted supply chain inconsistencies affecting cash flow. Renewable Energy Fund was 28% spent (budget $355k). Capital projects faced delays (e.g., transformers, tollway substation). SAIDI remained within acceptable range (goal <30 min). Energy efficiency and renewable program dashboard tracked EV count, thermostat rebates, and new net metering policy (no caps up to 1 MW). Reports were received unanimously.
- Retail Electricity Supply Presentation (Item 25-0746): Chris Townsend (CJT Energy Law) and Mark Pruitt (The Power Bureau) compared Naperville's electric costs to ComEd wholesale and retail. Their analysis showed that net of debt service, IMEA wholesale costs compared favorably to a PJM market proxy from 2017-2024. Retail comparisons for residential, small commercial, large commercial, and outdoor lighting were presented; Naperville rates were generally more stable with lower volatility. They also analyzed the feasibility of procuring from a retail supplier starting in 2035, finding significant challenges due to lack of liquidity beyond 2-3 years, regulatory risks, and the need for PJM membership and internal staff. They concluded that few standalone municipal utilities of Naperville's size operate without a joint action agency. Board members discussed the risks of going to market vs. re-upping with IMEA, noting 27 of 32 IMEA members have signed a 20-year extension and that IMEA offers a physical hedge.
- Green Energy Certificate Program (Item 25-0747): Sustainability Manager Ben Mjolstnis presented a new voluntary program allowing customers to purchase Renewable Energy Certificates (RECs) through IMEA at no markup. Residential and commercial customers can offset their electricity consumption. RECs cost approximately $38/MWh for PJM-qualified or $4/MWh for national. Program is optional with no set participation goals.
- Distributed Energy Resource Management System (DERMS) (Item 25-0748): Utility Engineering Manager Phil Calderoni and AMI Manager Raheel Arshan presented. DERMS will enable monitoring, forecasting, and control of distributed energy resources. Current demand response programs (CVR, IMEA DR) and solar growth (from 14 installations in 2014 to 1,076 in 2025) were discussed. A hosting capacity study shows emerging constraints. The project is funded by a DOE grant, with vendor selection by Q3 2025 and implementation in 24-36 months. Cybersecurity plans adhere to DOE standards.
- IMEA Board Meeting Updates and Manager's Memorandum (Items 25-0749, 25-0752): Director Groth reported that 27 of 32 IMEA members have signed the contract extension; non-signers include Naperville, Winnetka, St. Charles, Cairo, and Fairfield. The IMEA board extended the open season to August 21, 2025. Other topics: PJM capacity price increases (not affecting Naperville due to IMEA hedge), bond refinancing, Sierra Club lawsuit against Prairie State dismissed with prejudice, and three small solar projects (3 MW total) completed.
- IMEA Transmission Bill Report (Item 25-0750): IMEA provided a formal response showing that Naperville's transmission fees are comparable to PJM market fees, contrary to previous claims.
- PJM vs MISO Transmission Comparison (Item 25-0751): A memo comparing transmission costs was received.
Key Outcomes
- Approval of April 8, 2025 Meeting Minutes (amended): Motion by Fillar, seconded by Ackmann. Unanimous.
- Receipt of Water Utility Reports (Items 25-0682, 25-0683, 25-0684, 25-0707, 25-0708): Motion by Hoeft, seconded by Fillar. Unanimous.
- Receipt of Electric Utility Reports (Items 25-0741, 25-0742, 25-0743, 25-0744, 25-0745): Motion by Ackmann, seconded by Hoeft. Unanimous.
- Receipt of IMEA Board and Executive Board Meeting Minutes (Item 25-0749): Motion by Fillar, seconded by Bhikhapurawala. Unanimous.
- Receipt of Manager's Memorandum (Item 25-0752): Motion by Fillar, seconded by Bhikhapurawala. Unanimous.
- Receipt of IMEA Transmission Bill Report (Item 25-0750): Motion by Fillar, seconded by Bhikhapurawala. Unanimous.
- Receipt of PJM vs MISO Transmission Comparison (Item 25-0751): Motion by Fillar, seconded by Bhikhapurawala. Unanimous.
- Adjournment: Motion by Ackmann, seconded by Bhikhapurawala. Unanimous. Meeting ended at approximately 7:40 PM.
Meeting Transcript
Hello, this is Phil. Hi, Phil, we can hear you. Oh, okay. All right, hi, everyone. I would like to welcome you to the Thursday, May twenty ninth special special session public utilities advisory board meeting. This is our fourth meeting this year. My name is Lou Halkius, and I am the chair of this board, and we'll be conducting the meeting today. Michelle Ackman. Right there. Nathan Williams. Wilson. I'm sorry. Right there. And uh Phil Treeber. Phil. I think I'm here by phone. Thank you. Thank you. Our next order of business is public forum. Speakers will be called in the order that they signed up. If anyone was unable to sign up, they could speak at the end of the public forum. If you didn't sign up but would like to do so, please raise your hand so we can get your name and add it to the list. Please call the first public forum speaker. Daniel Bully. One minute. Hello. Hi, my name is Dan Bully. First of all, I I want to um sincerely thank the board for voting to recommend to the city council to sign the IMEA contract. I've been involved in the green building and sustainability movements for 20 years. I believe strongly in sustainability. I'm concerned about the fact that environmental sustainability is just one leg of a three-legged stool. And it's people plan it and uh people plan it and um money. All right. And the people part has been left out, and that doesn't work well. Uh I met with about a dozen residents uh last Friday, and we're looking into forming something called the Naperville Sustainability Project to spread the word of what real sustainability is. Um for instance, a lot of people don't realize that even though Washington state uh is much more progressive than Illinois if you look at the the federal elections, and yet they overwhelmingly voted to keep natural gas. And if you look into it, you found it was all the Democrats in Seattle that voted to do that. It's it's not a partisan issue. It's about money and it's about people. Um I would like to see the City of Naperville understand more about what real sustainability is. I did some calculations on the IMEA contract, and and I really what I'm asking to do is for the city to do their own calculations. I I would love to see projected rates in kilowatt hours. So in my projection, and you also have to look at if I did it a couple different ways. If you look at the fact that in two years we're gonna lose two major speaker plants in 2027 in Illinois, the projected power um load, increased load due to data centers across the country is gonna be four times the amount of power we have now. And the sad thing is that we don't people aren't gonna realize this till 2035 that we made a mistake. So I'm I like just some projections here. Um in 2040, if we're staying with the IMEA, my calculations say the the rate will be 15 cents an hour, and without IME, it'd be 19 cents an hour. You get up to 2050, 18 cents an hour, IMEA, 38 cents an hour without IMEA. Now these may not be thing, but I I would love to see some professional projections made on those so people can make an informed choice on this. Thank you very much.
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