Chicago buys power from Constellation, but wants it coal-free

Constellation struck an electric power supply agreement with the city of Chicago that will be transmitted from non-coal generation facilities.

New rates secured under the 25-month agreement will deliver a 2 percent discount from the city’s last electricity contract, despite escalating regional transmission and other tariff costs, amounting to a reduction in city electricity costs of $1.2 million over two years.

In addition to capturing historically low market prices, the agreement ensures Chicago’s power supply will be sourced by Constellation from non-coal fueled assets. By eliminating coal and transitioning to cleaner energy produced by nuclear and natural gas generation facilities based in Illinois, the city will reduce its carbon emissions by 99.5 percent and remove the equivalent of 221,000 cars from the road.

The city’s agreement with Constellation also complies with Illinois Renewable Portfolio standards. Meeting this non-coal supply requirement does not add any cost to the city, and will contribute to meeting the city’s Climate Action Plan goals.

Constellation was selected from a pool of qualified bidders and after three planned pricing events yielded successive reductions in bidder pricing. Constellation was the low-price bidder in all categories, and has agreed to meet all city contract terms and conditions. The actual rate and weighted average price for the fixed facility portion is $42.67 MWh (annualized).

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The Clarion Energy Content Team is made up of editors from various publications, including POWERGRID International, Power Engineering, Renewable Energy World, Hydro Review, Smart Energy International, and Power Engineering International. Contact the content lead for this publication at

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