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St. Charles Weighs IMA Power Contract Options, Approves Key City Infrastructure and Solar Updates

On May 28, 2024, the St. Charles Government Services Committee met to discuss the city’s Illinois Municipal Electric Agency (IMA) power contract, solar credit amendments, ongoing infrastructure projects, and upgrades to city systems and equipment.

The meeting included detailed discussions on energy sourcing, long-term planning, and community feedback, alongside the approval of critical city projects aimed at enhancing safety and operational efficiency.


IMA Power Sales Contract and Alternatives

A major focus of the meeting was the city’s 20-year power sales contract with IMA, which is set to expire in 2035. IMA is requesting approval for a new contract extending through 2055, emphasizing affordability, reliability, and sustainability.

Power Sourcing Options for St. Charles

City staff presented four alternative pathways for energy sourcing:

  1. Joining another Joint Action Agency (JAA) – e.g., NIMPA, though currently reliant on 100% coal.

  2. Forming a new JAA – limited feasibility due to few remaining unaligned municipal utilities.

  3. Competitive procurement – short-term contracts from power marketers, exposing the city to price volatility.

  4. Direct Power Purchase Agreements (PPAs) – contracting directly with generators for solar or wind power, requiring significant internal staff and resources.

Despite these alternatives, staff recommended renewing the contract with IMA due to its proven track record, St. Charles’ involvement in governance, and the ability to direct up to 10% of the city’s energy toward specific renewable sources.

Coal Reliance and Sustainability Plans

  • The current IMA mix includes ~80% coal, with a plan to reduce CO2 emissions by 45% from Prairie State coal by 2035.

  • IMA’s long-term goal is net-zero carbon emissions by 2055, incorporating renewables such as wind, solar, and battery storage.

  • Carbon capture technology will not be funded directly by IMA, though research remains possible.

Public Input

Residents expressed cautious optimism while urging transparency:

  • Susan Russo (Batavia) suggested a dual-contract approach, separating energy supply from operational services.

  • Debbie Mo (St. Charles) requested detailed cost analyses for alternatives and specific requirements for any contract renewal.

  • Bill Kale (Geneva) highlighted the feasibility of long-term solar contracts and recommended fully exploring alternatives before committing to IMA.

Naperville’s ongoing study on energy sourcing will provide additional insights by Fall 2024, and IMA representatives are scheduled to present a verbal offer at the June 24th committee meeting.


Solar Credit Amendments

The committee approved an amendment to City Code 13.08.320 to equalize credits for customer solar production. Customers will now receive the higher of the city’s current electricity cost or the rate determined by the Illinois Solar Energy Association, ensuring fair compensation for residential and small commercial solar contributions.


Lead Service Line Replacement Update

Staff provided an update on the city’s lead service line replacement plan, including:

  • Submission of a draft inventory to the Illinois EPA

  • Prioritization of high-risk facilities (schools, hospitals) and demographics based on census data

  • A phased replacement strategy for emergency, high-risk, and long-term infrastructure needs

No decisions were required during the meeting.


City Infrastructure Projects

Swenson Avenue Base Reclamation

  • Approved contract with Geneva Construction

  • Cement base reclamation strengthens weak industrial street base

  • Designed to minimize disruption to local businesses

Prairie Street Bridge Repairs

  • Contract approved for critical maintenance

  • 6–8 week closure required, with reopening by July 3 for Independence Day traffic

Riverside Culvert Improvement

  • Contract approved to replace undersized culvert

  • Enhances flood control and bike safety crossing

  • Route 25 closure anticipated for up to five weeks


Vehicle and Equipment Purchases

The committee approved the purchase of 25 vehicles and equipment units for Fiscal Year 2024, replacing older units through trade-ins or sale. Specialized vehicles, such as squad cars and EMS units, were successfully sourced despite ongoing supply challenges.


SCADA System Upgrade & Dump Trailer Replacement

  • SCADA Upgrade: Contract approved to enhance security and migrate to secure servers; this is the third and largest upgrade phase.

  • Dump Trailer Replacement: Budget addition approved to replace a damaged 32-foot trailer, funded partially through insurance and wastewater budget allocations.


First Street Plaza Project Change Order

The committee approved a contract change order with Martam Construction for IDOT Right-of-Way work. This included pedestrian and ADA improvements and signal adjustments, accounting for unforeseen delays due to IDOT staffing shortages.


Conclusion

The May 28 meeting emphasized careful evaluation of long-term energy contracts, ensuring sustainability while maintaining affordable and reliable power. Additionally, approvals for infrastructure, vehicle/equipment upgrades, SCADA system enhancements, and solar credit amendments illustrate St. Charles’ commitment to modern, resilient, and community-focused municipal services.

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