May 15, 2025

Karsten Neumeister

Winnetka’s Energy Crossroads

Winnetka has the opportunity to lead by example – aligning its energy policy with the values its residents already live by.

On May 13th, I attended a public Winnetka Village Council meeting about the future of the Village’s electric supply. This is Winnetka, Illinois – 20 miles north of Chicago – where you’ll see more Teslas than pickup trucks on its quiet, tree-lined streets. Affluent, progressive, and civically engaged, it boasts one of the highest electric vehicle (EV) adoption rates in the country. On paper, the Village feels primed to embrace a clean energy future.

Right now, Winnetka gets its electricity supply from the Illinois Municipal Electric Agency (IMEA), under a contract that runs until 2035. IMEA is an agency that helps small municipalities like Winnetka pool their resources to buy power at wholesale prices – kind of like splitting a bulk Costco run with your neighbors. Under contract with IMEA, Winnetka can lock in long-term wholesale contracts so it doesn’t have to worry about the ups and downs of the market.

That model has delivered Winnetka with predictable power rates for decades.

Winnetka’s dirty secret

IMEA is a co-owner of the Prairie State Generating Station, a massive coal-fired power plant in downstate Illinois, which generates much of its electricity supply. Prairie State is one of the largest polluters in the entire country – responsible for 12.4 million tons of carbon dioxide emissions in 2023 alone. That’s more than what some entire states emit. And it’s not just CO₂. Prairie State also emits sulfur dioxide and nitrogen oxides, which contribute to asthma, heart disease, and premature deaths. These pollutants disproportionately affect low-income communities living near the plant, some 300 miles away from Winnetka Village Hall.

Now, IMEA is asking its member communities – including Winnetka – to sign on to a new contract that would extend its commitment to IMEA and Prairie State all the way to 2055. Winnetka now finds itself at a crossroads.

At the meeting, Village staff gave a presentation on wholesale markets. They discussed the pros and cons of IMEA membership, the risks of going it alone, the uncertainties of the energy market.

If Winnetka stays with IMEA through 2055, it is effectively tying its energy future to one of the dirtiest and deadliest coal plants in the country – at a time when the rest of Illinois is moving in the opposite direction. Economically, it’s not a great deal either. Prairie State’s power comes at a high cost, especially as cleaner alternatives have become far more affordable. According to a 2024 analysis, utility-scale solar now costs as little as $29 per megawatt-hour — less than half the cost of coal, which can reach up to $166 per megawatt-hour.

The IMEA contract would also restrict Winnetka from developing more local clean energy. It caps local renewable generation at just 10% of the Village’s load – limiting its ability to build solar or explore modern solutions like distributed energy and microgrids.

What’s the alternative?

Seems like an easy decision? Of course, exiting IMEA isn’t as simple as saying no.

Winnetka could take advantage of Illinois’ restructured electricity market, where it could contract directly with a retail electricity supplier (RES). Many RES in Illinois offer low-carbon or even carbon-free energy supply. For example, Constellation Energy — the largest producer of carbon-free power in the U.S. — offers energy supply and management services in Illinois.

There’s a catch — Winnetka owns and maintains its own power plant and distribution system, so it technically functions as a municipal utility. This power plant is a massive asset to the Village, enhancing reliability and generating credits when it dispatches power onto the grid during periods of high demand. However, this means Winnetka would have to enter the wholesale electricity market independently, which would involve years of legal, technical, and financial work for a village of this size.

That path isn’t fully mapped yet, and there’s legitimate risk involved.

But the alternative – committing to 20 more years of coal – carries serious risks, too. Coal plants aren’t just polluters while they operate; they leave a toxic legacy. Cleaning up coal ash, remediating contaminated water, and managing long-term environmental damage is complex, costly, and often falls to the public to fund.

It’s also a decision that will outlast the tenure of most current Village officials. A high-school student summed it up best during public comment: “If Winnetka renews this contract, we’ll be locked in until I’m 45 years old,” prompting laughs and cheers from the audience.

It will take courage and hard work for the Village to change from the status quo. But it has the opportunity to step up and lead by example – aligning its energy policy with the values its residents already live by. Perhaps other municipalities in contracts with IMEA will follow suit, creating a beneficial domino effect for Illinois.

Take Action

City officials are trying to do the right thing. They stayed into the night, listening to constituents’ comments and asking thoughtful questions to their utility staff. If you live in Winnetka or another municipality considering renewing a contract with IMEA, your city officials want to hear from you.

We recommend you get in touch with your local city council, mayor, or alderman and urge them NOT to approve IMEA’s new contract.

Not sure who your local officials are? Find your local elected official here. For residents of Naperville, visit Clean Energy Naperville to learn more about your options to stop IMEA’s new contract.