Explanation
This ordinance authorizes the Director of Public Utilities to modify and increase contract #EL011028 with Ohio Power Company, dba American Electric Power (AEP), to provide funding for the payment of 2024 pole attachment rental fees for the Division of Power (DOP), in accordance with an existing agreement for the Joint Use of Poles (the “Agreement”) executed by the City and Columbus Southern Power, dba AEP.
In December 2008, it was determined that the joint use fees would no longer be deducted from AEP's right-of-way permit fees and that AEP would be allowed to bill DOP directly for its joint pole usage. Ordinance 1242-2010 stipulated that for annual rental fees going forward, a contract modification to provide the funds will be approved annually by ordinance of City Council. Additionally, the City consented to the assignment of the Agreement by Columbus Southern Power to Ohio Power Company through the passage of ORD #0317-2014 after the merger of AEP Ohio’s two operating companies, with Ohio Power Company the surviving entity.
DOP and AEP both own and operate electric transmission and distribution system facilities throughout Franklin County. These facilities include certain poles that have attached equipment owned by the other party. The Agreement provides the terms, conditions, and rates for the joint use of these poles. Per the terms of the Agreement, an inventory of jointly used poles was conducted in 2012. The Agreement provides that, in the event a pole inventory discloses any attachments that were not previously authorized by the pole owner, the attaching party is to pay annual charges for the attachments for a period of five (5) years or the period from the date of the last inventory, whichever is less, plus interest, at the current Interest Rate.
The invoice from AEP for 2024 annual rental fees, reflecting 15,567 attachments on AEP poles less 2,837 AEP attachments on City-owned poles, totals $190,950.00. For annual rental fees going ...
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