CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the RFP inviting proposals from qualified and experienced vendors to enter into a Power Purchase Agreement for the procurement of non-fossil fuel energy delivered to PJM on behalf of the City of Naperville
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Electric Utility Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The Electric Utility’s (Utility) current power provider, the Illinois Municipal Electric Agency (IMEA), has been providing services to the City since 2007 and electricity to Naperville since 2011.
The IMEA serves 32 municipal electric utilities across the state by securing the required capacity and energy for its member communities. Because the City currently has a full requirements energy supply contract, in addition to providing power, the IMEA also manages several administrative, legal, and regulatory services for the Utility. The City’s contract with IMEA expires on Sept. 30, 2035. As a full requirements contract, the City currently does not have the right to procure energy outside of this contract.
The IMEA has proposed a new 20-year contract which will begin in 2035 and extend to 2055. This new contract permits Member Directed Resources (MDR), which allows member municipalities to procure a portion of their energy supply from alternative sources outside of IMEA’s portfolio.
Specifically, MDR enables members to secure a percentage of their energy needs from renewable energy sources such as solar, wind, nuclear, or other non-coal options to meet the City’s sustainability goals.
This opportunity is only available to IMEA members who sign the new contract. Naperville has not signed but is in the process of evaluating all options.
If Naperville signs the new contract, it is anticipated that the IMEA will authorize Naperville to begin utilizing MDR as soon as January 1, 2026, despite the new contract technically not becoming effective until 2035.
DISCUSSION:
Based on Council discussion at the August 19, 2025 meeting, a Request for Proposal (RFP) will be issued to identify suppliers, projects and other resources that may be available should the City enter into a contract with the IMEA and choose to supplement the energy supply with a dedicated non-fossil fuel energy source exclusive to Naperville.
This RFP invites proposals from qualified and experienced vendors to enter into a Power Purchase Agreement (PPA) for the procurement of non-fossil fuel energy within the PJM Interconnection territory.
The PPA shall have a minimum term of five years and a maximum term of 20 years with a fixed price per kilowatt (kWh) maintained throughout the entire contract duration.
The objective of this solicitation is to secure reliable, cost-effective, and environmentally sustainable energy supply that aligns with Naperville’s commitment to transitioning to clean energy.
FISCAL IMPACT:
Upon award of the RFP.