NewGen was engaged by the City of Chicago, Illinois (Chicago or the City) to conduct a preliminary investigation into the establishment of a municipal electric utility (MEU) to serve the residents and businesses of Chicago, which is currently provided service by the Commonwealth Edison Company (ComEd). The intent of the Preliminary Feasibility Study (Study) was to determine if the City should continue with its efforts to establish a locally controlled MEU. Study elements included financial feasibility analyses and review of the City’s public policy objectives as they relate to electric utility operations, as well as analysis of the estimated costs of electric delivery service for a proposed City utility compared to ComEd.
NewGen recommended that the City not pursue municipalization of the ComEd system, at this time, as the financial feasibility suggests higher annual average retail delivery rates for City service than the projected ComEd rates. However, there are alternatives to municipalization that the City can employ to support its goals and public policy objectives.
The full report is available at the City’s website:
https://www.chicago.gov/city/en/depts/dgs/supp_info/SCOPE_OF_SERVICE_MUNICIPALIZATION_FEASIBILITY_STUDY.html