Illinois Municipal Electric Agency (IMEA)

The Village’s wholesale power supplier is the Illinois Municipal Electric Agency (IMEA). The current Power Sales Contract and Capacity Purchase Agreement are set to expire on September 30, 2035. To properly plan for and transition from a carbon-based portfolio to a net-zero generation portfolio by 2050 while also ensuring generation resources are in place to meet the agency’s future power needs, IMEA is requesting that the Village, and its other thirty-one members, consider an extension of their contracts with the agency at this time. The contract terms for the new Power Sales Contract and Capacity Purchase Agreement are for the period of October 1, 2035, through May 31, 2055. 

June 26, 2025: IMEA Regular Board Meeting

At this meeting, the IMEA Board approved the execution of the new Power Sales Contract and New Capacity Purchase Agreement previously signed on June 17 by the Winnetka Village Council. Winnetka will remain under contract with IMEA for the delivery period 2035 – 2055.

June 18, 2025: Village Council Statement Regarding the Adoption of the IMEA Contract Extension through May 31, 2055

On June 17, the Village Council approved the extension of the Village’s power supply contracts with the Illinois Municipal Electric Agency (IMEA) through 2055. IMEA has committed to transition its generation sources to zero carbon emission by 2050. In order to do this, IMEA needs to make significant investments. Contract extensions with member communities help IMEA to identify its power demand requirements far enough in advance that it can invest appropriately in solutions that meet the anticipated future power needs.

We understand that this is a contentious issue, due in part to IMEA’s use of coal in its current power generation portfolio. The Village Council is not a fan of coal, and we are deeply concerned about the environment. This year, the Village hired a Sustainability Coordinator, who is working to develop a Climate Action Plan to identify energy efficiency and clean energy measures we can take at a local level to reduce greenhouse gasses, including exploring the development of a solar field on our decommissioned landfill and ‘cleaner’ generation at our electric plant. We also intend on holding IMEA to its pledge to transition to zero carbon emissions by 2050.

The decision to extend the contract with IMEA was not taken lightly at all. We reviewed the issue for 14 months, including 5 study sessions on the topic where extensive public comment was heard. We participated in the Winnetka Future Energy Coalition Forum, spoke with businesspeople directly involved with supplying equipment to the power grid, and met with an energy consultant on multiple occasions, who investigated the Village’s options with power marketers that supply power to municipalities, and reported back his findings. It was an exhaustive effort undertaken to understand an extremely complex issue and make a decision in the best interest of the Village’s ability to supply predictable, reliable, and affordable power with limited risk of interruption. 

To make the choice to pursue a different electric supplier option in a rapidly-changing electric market would have been a significant risk that Council was unwilling to take. We understand that on the surface it looks like we are supporting electricity from coal generation. This is not the case: we are maintaining our existing outstanding, reliable, and affordable delivery of electricity to Winnetka’s homes and businesses and supporting our energy supplier in its plans to move toward carbon-neutral generation.  

June 17, 2025: Village Council Regular Meeting

June 3, 2025: Village Council Regular Meeting

May 13, 2025: Village Council Study Session

At this study session, the Village Council continued discussion on the IMEA contracts. Council reviewed a report on the Village’s energy procurement options, prepared by an independent consultant, and looked at the Village’s historic power costs as compared to other options.

February 11, 2025: Village Council Study Session

As the April 30, 2025, deadline approached for the Village to consider a renewal of the IMEA contract, Village Council continued its stakeholder engagement to support a transparent decision-making process. At the February 11 Study Session, IMEA representatives presented and answered questions about the new Power Sales Contract and Capacity Purchase Agreement for the period of October 1, 2035 through May 31, 2055. 

Year-End 2024: Sustainability Plan and IMEA Update

IMEA has a published Sustainability Plan that outlines the Agency's path to a “Net Zero” generation portfolio by 2050. The plan was developed by a working group of the Board of Directors, presented publicly at two agency meetings, and formally adopted by the Board of Directors in 2023. At the December 2024, Board of Directors Meeting, IMEA staff presented the first progress report on the Agency’s Sustainability Plan. On a three-year review cycle, the agency will utilize a member governing body stakeholder process to update the Sustainability Plan.

The Agency’s power supply portfolio is already transitioning to cleaner, carbon-free (i.e. renewable) resources. IMEA executed a 20-year agreement with solar developer National Grid Renewables in November 2024 to purchase the electrical output of the Bee Hollow solar generation facility. The 150-megawatt solar project located in St. Clair County is expected to begin commercial operation in late 2026.  The Bee Hollow solar energy purchase is in addition to the nine existing solar projects in IMEA member communities, two wind power contracts, and power from two hydro plants.

As technologies evolve, IMEA will continue to support innovation and technological advancements that contribute to reducing overall emissions from the energy sector to achieve a stable electric grid that reliably delivers carbon-free energy. By the end of 2025, IMEA will study the feasibility of installing utility-scale behind-the-meter battery storage on member distribution systems. If deemed economically feasible, implementation would occur no later than 2030.

December 10, 2024: Village Council Study Session

At the December 10, 2024 Council Study Session, a consultant provided an overview of the wholesale electric market and alternative options, other than IMEA, for the supply of the Village’s wholesale power requirements when the current contract expires in September 2035. The purpose of the Study Session was to assist the Council with making future policy decisions. View the video of the study session. View the PowerPoint slides used during the study session (PDF).

November 25, 2024: IMEA Adds 150MW Utility-Scale Solar Generating Facility

IMEA has executed a 20-year agreement with solar developer National Grid Renewables to purchase the electrical output of the Bee Hollow solar generation facility. The 150-megawatt solar project will be located outside Fayetteville in St. Clair County, Illinois. The project is expected to begin commercial operation in late 2026. The addition of utility-scale solar generation is consistent with the agency’s 2024 Sustainability Plan which commits to the transition to carbon free generation resources. Read the IMEA press release. 

October 22, 2024: Winnetka Future Energy Coalition Forum

The Village attended and participated in a forum hosted by the Winnetka Future Energy Coalition to discuss the IMEA contract and the future of energy supply for the Village. View the video of the forum here. 

May 26, 2024: Chicago Tribune Article

On May 26, the Chicago Tribune published an article titled “Naperville, St. Charles, Winnetka and dozens of other communities urged to double down on coal.”  The article did not mention important information about IMEA and the policies being pursued at this time.  

  •  As was noted in the May 14, 2024 Council Study Session, IMEA is not “doubling down on coal,” but transitioning to renewable energy. The IMEA Board of Directors has approved a Sustainability Plan that sets forth an organizational policy for achieving a net zero power supply carbon emissions delivered to members by 2050. The proposed contract extension will be guided by the IMEA Sustainability Plan, which will shift to long-term agreements relying on renewable energy.
  • IMEA did not oppose and will comply with State statutes with respect to reducing reliance on coal-fired electrical generation in 2035, and if proposed US EPA regulations survive legal challenges, IMEA will comply with federal law as well. 
  • There was no mention of the state’s Renewable Portfolio Standard or that IMEA’s 11% use of renewable energy in 2023 exceeded the Illinois Power Agency’s 6.8% of renewable energy supplied to the investor-owned utility customers.
  • The article failed to mention IMEA’s plan to add 130MW of solar energy by 2026, which will further increase the agency’s renewable energy portfolio.
  • Contrary to statements in the article, IMEA is not currently pursuing a carbon capture and storage (CCS) project. Prairie State is exploring the technology in lieu of the future mandated closure date.
  • Extending the IMEA contract will allow the Agency to move more quickly toward adding solar and other renewable resources at an economic rate. The best renewable energy supply deals are 20-year deals that typically offer 20% to 30% lower pricing than shorter term deals. Since there are only 11 years remaining on the current contract term, IMEA is unable to purchase a 20 year contract for renewable energy supply.
  • As to the pending EPA regulations and how they may affect some generation assets of which IMEA is a minority owner: IMEA, like all other utilities in the nation that have gas or coal generation, is reviewing the pending federal regulations and will comply accordingly.

May 14, 2024: Council Study Session

At the May 14, 2024 Council Study Session, representatives from IMEA presented the new Power Sales Contract and Capacity Purchase Agreement for initial consideration by the Village Council. The Council discussed future Village power needs, anticipated debt related to the carbon neutral transition, utilization of alternative power entities other than IMEA, the future of net-zero vision, replacement and addition of generating resources and the benefits of resource ownership.

July 11, 2023: Council Study Session

At the Council Study Session on July 11, staff presented background information on the Village’s electric distribution system, power supply agreement and electric generating resources at the Electric Plant. The purpose of the Study Session was to provide a broad overview of the various elements that comprise the system to assist the Council with making future policy decisions.