Page Contents

    Advertiser Disclosure: At, our number one goal is to help you make better energy decisions. We adhere to strict editorial guidelines, however this post may include references to products offered from our partners.

    Constellation, a retail electricity, and natural gas supplier announced a unique power supply agreement with the City of Chicago that will be sourced entirely 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.

    “Through the success of the municipal aggregation program, the City of Chicago has decreased its carbon footprint while delivering savings to residents and small businesses,” said Mayor Rahm Emanuel. “Our agreement with Constellation will build on this success while creating a cleaner, healthier environment for our children.”

    Constellation was selected from a pool of Qualified Bidders that represent some of the most sophisticated and financially stable suppliers in the region. Constellation was selected 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 $42.67MWh (annualized).

    “We’re pleased to partner with the City of Chicago on an agreement that will lower costs, enhance sustainability and advance Chicago’s clean energy leadership,” said Louis J. Hutchinson III, vice president, public sector, Constellation.

    The agreement applies to the City’s Fleet and Facility Management (2FM) portfolio, which includes all City owned facilities that 2FM manages, including all City libraries, police and fire stations as well as buildings like the Cultural Center, City Hall, Harold Washington Library, O’Hare and Midway airports. 2FM manages a total of 450 facilities and all of the City’s street and traffic lights.