Note: This posting is a copy/paste of an email report to the NEST Energy Committee, where the formatting characteristics of the original email change when copy/pasting from Microsoft Office using the WordPress editor.
Hello Energy,
Sharing my “highlights” from the Thursday February 20 IMEA Board Meeting:
- IMEA Goals for Fiscal Year (FY) 25/26
- IMEA Member Mascoutah New Contract Approval
- IMEA Bonds Refinancing Approval
- Revised and Original New Budgets Approval
- Nomination and Approval of IMEA Officers
- Some Additional Noteworthy Items
The link to a copy of this board meeting’s presentation slides pdf is:
https://drive.google.com/file/d/1TD7uD9HdvwSKufOE2L7jl-SbQsNEgnJL/view
The link to IMEA’s board meetings webpage, which also now contains links to board meeting packets including the February packet, is:
https://imea.org/IMEA%20Board%20Meeting%20Schedule.asp
Note that IMEA is now keeping older meeting records posted on their website, including board meeting packets but not including board meeting slides.
Links to our CLEAN historical collection of IMEA board meeting slides, agendas, minutes, resolutions, monthly financial reports, etc. is posted on the CLEAN Sources and Resource webpage:
https://cleanenergynaperville.org/sources-and-resources/imea-board-and-other-imea-records/
Note that this report does not include the previous day’s exec board meeting which reviewed the same resolutions/ordinances to be approved by the regular full board. I do try to provide an exec board highlights report during the months when there is no regular full board meeting.
1. IMEA Goals for Fiscal Year (FY) 25/26 (slide 16)
[Note that IMEA “Fiscal Year 25/26” is the same as “Fiscal Year 2026” which ends on Apr 30, 2026 and started on the previous calendar year’s May 1, 2025. IMEA often also uses the beginning and ending year notation in their references to the IMEA fiscal year.]
Copy/pasting directly from the slide. Please note my use of 3 italicized items to emphasize: the new contract criteria for terms beyond April 30, 2025, the battery study, and CVR.
- Complete FY 25/26 below approved budget
- Maintain Debt Service Coverage of 1.20 at fiscal year end
- Visit each Member at least once in fiscal year
- Maintain all current financial ratings agency status
- Complete Ameren Wholesale Connection Agreements with members and work with Ameren regarding filings and approval at FERC
- Review status of outstanding IMEA Member Power Sales Contracts and provide criteria for terms beyond April 30, 2025
- Complete IMEA bond refinancing
- Extend IMEA Demand Response Program for FY 25/26 and sign up at least 4 retail customers
- Evaluate Ameren WDS rate change proposal and determine IMEA’s efforts to mitigate increases
- Complete study of installing utility scale, BTM battery storage unit within a member system to be completed by December 31, 2025
- Determine options and most cost-effective method(s) for a Conservation Voltage Reduction Program by December 31, 2025 [Note: Naperville already utilizes its own CVR program.]
- Evaluate member interest and logistics to approve the Transmission Joint Ownership Agreement with Ameren to build 138kv line between Peru and Princeton as well as larger MISO Tranche 2 transmission opportunities
2. IMEA Member Mascoutah New Contract Approval (slide 41)
- The IMEA board adopted resolution #25-02-939 to formally accept and approve the new contract of Mascoutah
- [As also mentioned during the President and CEO report] the Carmi city council has now also approved the new contract. Carmi will be formally accepted and approved at the April IMEA board meeting, making it 25 out 32 members that have approved
3. IMEA Bonds Refinancing Approval (slides 42 – 44)
- The IMEA board approved ordinance #25-02-940 authorizing the sales of bonds to refinance the remaining 10 years of IMEA’s debt:
$387.4M of outstanding 2015A tax exempt bonds
$256.2M of outstanding 2009C and 2010A Build America Bonds (BABs). if savings are at or near break even - Will not extend IMEA’s bond obligations beyond 2035, which is also the existing bonds maturity date
- Planning to be ready to price and to sell in May 2025
- Bank of America is the Senior Underwriter
- This ordinance #25-02-940 is reported to be very similar to the ordinance that approved the sale of the 2015A bonds
4. Revised and Original New Budgets Approval (slides 45 – 61)
- The IMEA board approved two budget ordinances, one revising the current fiscal year’s budget (FY2025) and the other establishing the new fiscal year budget (FY2026)
- Ordinance #25-02-941 revises the operating and capital budget for the current fiscal year (FY2025) which ends on April 30, 2025
- The presentation slides for the revised budget are slides 46 -51
- The ordinance including the revised budget are on pdf pages 48-54 in the board meeting packet
- Heard that lower prices in PJM where IMEA is selling are offset by lower prices in MISO where IMEA is buying
[Note: “selling” apparently indicates greater IMEA resource generation credits than members’ consumption charges, and “buying” indicates greater members’ consumption charges than IMEA resource generation credits. Also, IMEA’s ownership shares of Prairie State and apparently Trimble County too are pseudo-tied to PJM, such that IMEA receives PJM market revenue/ credits from PJM for their output generation] - Prairie State and Trimble had more than expected outage days, so fuel decreased and O&M increased
- PJM peaks were lower than forecasted, so transmission costs were lower
- Prairie State and Trimble County Capital Expenditures decreased due to timing of expenditures. IMEA’s May to Apr fiscal year is apparently different than the fiscal years of Prairie State and Trimble
- Ordinance #25-02-942 establishes the original budget for the new fiscal year (FY2026) which begins this upcoming May 1, 2025 and ends on Apr 30, 2026
- The presentation slides for the new original budget are slides 52 – 59
- The ordinance including new original budget are on pdf pages 55-61 in the board meeting packet
- Average cost to members is projected to be $88.83, which is 3.5% higher than the FY2025 revised budget
- Prairie State is assumed to have higher availability and higher generation and therefore also higher fuel costs than the FY2025 revised budget
- Trimble County has more scheduled outage days. TC Unit 1 has 85 planned outages days (65-day outage for turbine maintenance). TC Unit2 has 73 planned outage days (62-day outage for turbine maintenance)
- Ameren NITS (transmission) charges are estimated to increase 21%
- PJM NITS (transmission) charges are estimated to increase 2.3%
- IMEA’s table of Updated Financial Projections (through FY 2029) is on slide 60
- IMEA’s bar chart of Average Cost, illustrating the effect of power supply costs and transmission costs, is on slide 61 titled “IMEA Rates are Very Stable and have been Sustained for many years”
[NOTE: First, allow me to express my thanks and appreciation to our Electric Director for the budget questions that he asked regarding items I raised in my email to him less than 48 hours before this regular full board meeting. Then next, I’m sharing my citizen opinion that there are reasons why one might question the IMEA budget process, including:
- Based on the packet cover letter, IMEA board members (many, if not most, with other full-time job responsibilities) apparently received the budget in their board packet only 7 calendar days in advance of the board meeting, 6 days in advance of the exec board meeting
- When IMEA posted the packet on its website on Tuesday morning, roughly 48 hours remained for the public to review and ask questions of their board member representatives
- There was only one budget presentation, followed by the approval vote in the very same meeting
- Prior to the vote, the IMEA President and CEO informed the board members that the IMEA exec board had unanimously approved the budget the day before.]
5. Nomination and Approval of IMEA Officers (slide 62 and 67)
- Our Naperville Electric Director, Brian Groth, continues as Vice-Chair for FY2026
- Copy/pasting nominations from slide 62 that were unanimously approved:
- Dan Cook, Highland as Chairman
- Brian Groth, Naperville as Vice Chairman
- Bob Coble, Flora as Secretary/Treasurer
- Cory Sheehy, Marshall as Past Chairman
- Troy Fodor as Assistant Secretary/Treasurer
- 5 [at large] one-year term exec board members:
- Larry Taylor, Altamont
- David Coston, Carmi
- Pat McCarthy, Chatham
- Pete Suhr, St. Charles
- Mike Kirk, Sullivan
6. Some additional noteworthy items
Note: Here are some but not all noteworthy items to satisfy everyone’s interests, so please use the link provided above to review the pdf copy of the slides.
- Treasurer’s Report (slides 3 – 10)
- Dec – Feb Monthly Invoices to Members report included a reminder that higher energy sales for the month typically results in lower average costs for the month
- President and CEO Report (slides 11 – 17)
- By FY26/27 IMEA will have 20% renewables with the additional comment by the President and CEO of “more than the state’s investor-owned programs have done … at a fraction of the cost”
[NOTE: In my opinion, this is an example of IMEA misleading information in making this comparison without also telling the full story of IMEA’s use of non-IMEA generation resources and arbitraged RECs. It’s “cherry picking” to tell a very one-sided IMEA narrative. Refer to example d in section 1 of our Lack of Transparency whitepaper as well as the Dec 12, 2024 board meeting highlights report for further information on IMEA’s practices involving RECs and renewable energy claims.] - The Carmi city council unanimously approved new IMEA contract on Tuesday (Feb18). The Carmi contract will be formally accepted by IMEA at the April board meeting making 25 of 32 that have renewed with the exact same contract language
- March 26 exec board meeting is canceled and will be replaced by generation committee and transmission committee meetings.
- New FERC chairman, Mark Christie, has been named. Described as having been an “objector” to most recent FERC filings on how RTO markets are treated and how to pay for transmission costs
- Provided a recap in slide 15 of long-term transmission ownership opportunities with MISO Tranche 2.1 that had been discussed at the January exec board meeting
- Provided the IMEA Goals for FY 25/26 (described in item #1 above)
- By FY26/27 IMEA will have 20% renewables with the additional comment by the President and CEO of “more than the state’s investor-owned programs have done … at a fraction of the cost”
- Legislative and Regulatory Report (slides 18 -20)
- 3 primary lobbying goals for APPA rally in Washington DC described as
- Protect tax-exempt bonds/ financing
- Protect direct pay of tax credits for renewables
- Advocate for tax credits legislation for U.S. transformers to address national “crisis” (continuing supply chain issues and corresponding issues of availability, cost, etc.)
- 3 primary lobbying goals for APPA rally in Washington DC described as
- Consideration of Closed Session Minutes (slide 21)
- Board approved continuing confidentiality need and the continued withholding from the public of the closed session minutes of Nov 6-7, 2019 [over 5 years now], Jun 17, 2021, and Nov 9-10, 2022 per the recommendation of the IMEA general counsel that these minutes “reflect pre-decisional power supply matters that are still under consideration”
- Board approved releasing closed session minutes of June 27, 2024 and Aug 29, 2024 per recommendation that they be released
- Operations (slides 22 -24)
- PJM 26/27 & 27/28 capacity auctions set a cap of ~$325/MW-day and a floor of ~$175/MW-day per agreement with the State of Pennsylvania. Few people are taking note of that floor (compared to the 24/25 price of $29.50)
- PJM set a new winter peak record of 145,000 MW. The previous was 143,700 in Feb 2015
- Upcoming IMEA Member seminars/webinars includes an April 2025 on IMEA Member Distributed Energy Resources (DER) RTO Reporting Requirement
- Trimble County (slide 25)
- 2024 performance:
- Equivalent Availability Factor (EAF) 81.25 YTD
- Equivalent Forced Outage Rate (EFOR) 5.06 YTD
- Unit 1 has been at “full load” since Sept. And also “small derate” in Jan 2025 due to a stuck control valve
- Unit 2 was “derated slightly” due to cooling tower pump repair in late Dec. And also “full load” since Jan 23, 2025 with no issues
- TC staff continues to work toward stack refurbishment. Engineering and Design study to be completed by Summer 2025
- 2024 performance:
- Prairie State (slide 26)
- 2024 performance:
- Equivalent Availability Factor (EAF) 82.51 YTD
- Equivalent Forced Outage Rate (EFOR) 13.02 YTD
- Unit 1 had two outages due to boiler tube leaks. And also “full load” since Jan 26
- Unit 2 “full load” since Jan 6
- Carbon capture – no updates
- 2024 performance:
[NOTE: it’s interesting, in my opinion, to observe the change in IMEA reporting on Prairie State and Trimble County. such that the report now provides this “full load since ”. Is it a coincidence that this change has occurred after our posting online on the number of days that Prairie State and Trimble County units were concurrently down during December?
– 12 days in December when both Prairie State Units 1 and 2 were not generating electricity, and
– For 7 of those 12 days, Trimble County Unit 2 was not generating any electricity either.]
- Local Transmission and Generation (slides 27 – 29)
- Working with Rock Falls so that non-dedicated units may become dedicated to IMEA
- Staff will seek IMEA Board approval to complete the Princeton/Peru transmission joint ownership and operating agreements process by mid-2025 [We should expect further details and discussion at the March Transmission Committee meeting,]
- Solar Projects (slides 30 -34)
- Marshall and Princeton waiting on tracking software before commercial operation date (COD) can be declared.
- Oglesby still on track for spring 2025
- USDA Pace Loans projects in holding pattern due to President Trump’s Executive Order pausing IRA disbursements
- Verbal only mention [not in slides] that the 150MW Bee Hollow solar project is on track for end of 2026
- Legal Report (slides 35 – 40)
- [Leaving it to you who are interested to look at the slides]
- APPA Travel Expenditures Approval (slide 63)
- Board approved travel to APPA rally in Washington DC [for apparently a printed list of attendees which we will see when the minutes are approved and posted after the next board meeting in April].
- Authorization to Study Export of Member Gen (slides 64 -66)
- Board approved authorization for the President and CEO to enter into agreements with Ameren to study the potential export of member generation to the grid
—–
Repeating my ask to please make it a priority to attend IMEA board meetings. IMEA does not provide us with recordings of the meetings, and there is no requirement to do so under current law. Your attendance supports our efforts to put the “public” back into “public power”, and also helps to “trust but verify” what I write in these highlights reports
- The IMEA board meetings webpage tells us the next scheduled exec board and regular full board meetings are scheduled for April 23 -24.
https://imea.org/IMEA%20Board%20Meeting%20Schedule.asp - Webinar registration info is posted within the IMEA meeting agenda document files, which have typically been posted by IMEA by Friday of the preceding week.
- The board meeting packets have been showing up late Monday or early Tuesday on the IMEA webpage, even though IMEA apparently provides the IMEA board member reps their copy of the packet a full week ahead of the meetings.
- As mentioned from the President and CEO report, the March 26 exec board meeting is canceled, and will be replaced by meetings of the Generation Committee and the Transmission Committee. We should expect to see meeting agendas at:
https://imea.org/IMEA%20Committee%20Meeting%20Schedule.asp
Thanks.
Greg