Explanation
This legislation authorizes the Director of the Finance & Management Department to enter into an agreement with AEP Energy, Inc. for the purchase of electric power for various facilities under the purview of the Department of Finance & Management, the Department of Public Service, and the Department of Recreation & Parks.
The City of Columbus, Departments of Finance, Public Service, and Recreation & Parks are retail customers with AEP Ohio and facilities under their purview are metered and billed by AEP Ohio. AEP Energy, Inc. is a competitive retail electric service provider and affiliate of AEP Ohio. The Finance & Management Department has coordinated with AEP Energy, Inc. to reduce the power cost associated with the City facilities currently on the AEP Ohio system.
By switching the generation and transmission of associated facilities currently on the AEP Ohio system to AEP Energy, Inc., the aforementioned City Departments will reduce the cost of electricity by locking in a pre-established rate, which is below current billed KWh rates. AEP Ohio would continue to charge the aforementioned City Departments for distribution and customer charges.
The Department of Finance & Management feels that it is in the best interest of the City of Columbus to enter into this agreement with AEP Energy, Inc. to take advantage of the power cost savings. This ordinance is being submitted as an emergency so that the department can enter into the agreement at the earliest time possible to take advantage of cost savings and to lock in electricity rates, as determined to be appropriate.
FISCAL IMPACT: No funding required for this contract
Contract Compliance No.: AEP Retail Energy 13-4922640, Expires 4-13-13
Title
To authorize the Director of Finance & Managment Department to enter into an agreement with AEP Retail Energy for the purchase of electric power; and to declare an emergency.
Body
WHEREAS, The City of Columbus, Departments of Finance & Management, Public Service, and Recreation & Parks are currently customers with AEP Ohio and electric power is metered and billed by AEP Ohio; and
WHEREAS, AEP Energy, Inc. is a competitive retail electric service provider and affiliate of AEP Ohio and the Department of Finance & Management has coordinated with AEP Energy, Inc. in an effort to reduce the power cost of associated City-owned facilities under the purview of these Departments on the AEP Ohio system; and
WHEREAS, By switching the electric power costs currently on the AEP Ohio system to AEP Energy, Inc. these City Departments will reduce the cost of electricity by locking in a pre-established rate, which is below current billed KWh rates; and
WHEREAS, AEP Ohio would continue to charge these Departments for certain distribution and customer charges, and
WHEREAS, Section 329.07(a) of the Columbus City Code exempts items for which fixed prices prevail, such as utility services, from the bidding process; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance & Management, in that it is immediately necessary to enter into the agreement with AEP Retail Energy for the purchase of electric power so that the Department of Finance & Management, the Department of Public Service, and the Department of Recreation & Parks can take advantage of certain electricity cost savings for the immediate preservation of the public health, peace, property and safety; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Finance & Mangement be and is hereby authorized to enter into an agreement with AEP Energy, Inc. for the provision of electric service at certain set rates for various City-owned facilities under the purview of the Departments of Finance & Management, Public Service, and Recreation & Parks.
Section 2. That for the reasons stated in the preamble hereto, where is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, which shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.