Nevertheless, she hammered the utility company on its legal and ethical issues and insisted that the city not accept any agreement called a franchise agreement. The last franchise deal was equally controversial and was concluded nearly 30 years ago under Richard M. Daley. It expires at the end of the year. State law allows local municipalities to operate supply services such as the provision of water, electricity and garbage collection. In fact, Chicago already runs its own water, sanitation, and garbage services. On the one hand, the city`s communalization could help move more aggressively toward 100% renewable energy targets, although the city would also have to essentially buy ComEd`s electricity supply infrastructure, which could be very expensive. On the other hand, he found that investment firms like ComEd are also a “mixed bag”. However, this unbilled energy results in significant costs to payers in more than 350 municipalities, which together pay hundreds of millions of dollars more than they might otherwise owe as a result of the agreements. According to estimates by Mark Pruitt, a former director of the Illinois Power Agency, who studied how franchise agreements prevent cities from reducing energy costs and investing in clean energy.
Lightfoot`s government said this summer — and officials repeated it at a public hearing Tuesday — that it would cost too much and billions of dollars to complete a project to buy the power grid by the city of ComEd. This admission eliminated some of the influence that the mayor had in the negotiations. ComEd confirmed to the City Bureau that the company had submitted a response to the city through June 15 with its proposed terms, but declined to provide additional details about what they offered or what the city offered. According to a June Documenters report on the Committee meeting, the company received few responses on tariffs, renewable energy information and more. ComEd estimated it could cost at least $5 billion and possibly up to $10 billion for the city to buy all of its electrical infrastructure to take over for the refueling company. It would likely cost the city nearly $9 billion if Chicago wanted to sever its relationship with commonwealth Edison and create its own electricity supplier, according to a city study released Friday. Such an audit is proving useful in the franchise negotiations already underway. It`s likely going to cost the city $4.9 billion just to buy the pylons and wires and chargers comEd uses to light up the city`s 1 million homes and stores, according to the study.