Explanation
BACKGROUND:
This ordinance authorizes the Director of Public Utilities to modify and increase the Master Services Agreement (MSA) with American Municipal Power, Inc. (AMP, Inc.) to provide funding for the purchase of wholesale electricity and associated services in 2026 for the Division of Power. The funds authorized by this ordinance will cover the costs of power supply and additional ancillary services provided by AMP, Inc., such as diesel generator maintenance, representation on federal power issues, staff training, participation in journeyman lineworker safety and training programs, participation in the Community Energy Savings Smart Thermostat Program, and customer development services.
Ordinance 1108-2023 authorized the Director of Public Utilities to conduct a modified request for proposal (RFP) process to negotiate with multiple suppliers and to select a supplier to fulfill the Division of Power’s electric power supply requirements for a one-year term beginning January 1, 2026 and extending for up to three one-year renewal periods. That ordinance also authorized the awarding of and entering into such a power supply agreement. AEP Energy Partners, Inc. was awarded the bid, however the Division of Power desires to continue its membership with AMP due to the additional services offered, as well as the allocation of the New York Power Authority’s hydroelectric power that is received via AMP. As a municipal system in a border state of the Great Lakes, the DOP continues to receive a small allocation of hydroelectric power from the New York Power Authority. This allocation has been utilized by the City since the 1980’s.
This requested modification also seeks to extend the current term of the Community Energy Savings Smart Thermostat Program Schedule, which was attached to the MSA by Modification No.24 and Ord #3132-2025, by one (1) year to March 31, 2027.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
1. Amount of additional funds: The total amount of additional funds needed for this contract Modification No.25 is $635,000.00. $300,000.00 is allocated for the purchase of wholesale electric power, $210,000.00 is allocated for ancillary services provided by AMP, Inc., and $125,000.00 is allocated for the journeyman lineworker training program. Total contract amount including this modification is $463,871,344.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract and this legislation authorizes funding to cover the wholesale electricity and associated services needs for 2026.
3. Reason other procurement processes were not used: American Municipal Power, Inc. is a non-profit organization for state municipalities and, acting as a broker, has contracted for competitive prices on the City's behalf through a bidding process. For the lineworker training, only two programs offer the training locally and AMP’s program cost per attendee is the lowest cost option.
4. How was cost determined: The modification is based upon estimated requirements for 2026 at rates established in the existing contract.
SUPPLIER:
American Municipal Power, Inc. | D365 Vendor #004495 | Federal EIN on file | Expires 1/9/2026 (pending update) | Nonprofit Organization AMP, Inc. does not hold MBE/FBE status.
The company is not debarred according to the Excluded Party Listing System of the Federal Government or prohibited from being awarded a contract according to the Auditor of State Unresolved Findings for Recovery Certified Search.
FISCAL IMPACT:
$635,000.00 is budgeted and available for this purchase.
$58,546,810.36 was spent in 2025
$53,386,098.99 was spent in 2024
$55,388,392.21 was spent in 2023
EMERGENCY DESIGNATION:
This ordinance is being submitted as an emergency due to the March 31, 2026 end date of the CES Smart Thermostat program term, to maintain continuity for Columbus Water & Power customers desiring to access the Smart Thermostat ordering window.
Title
To authorize the Director of Public Utilities to modify and increase the Master Services Agreement for the purchase of wholesale electric power and associated services with American Municipal Power, Inc. for the Division of Power and extend the Community Energy Savings Smart Thermostat Program term through March 31, 2027; to authorize the expenditure of $635,000.00 from the Electricity Operating Fund; and to declare an emergency. ($635,000.00)
Body
WHEREAS, the Division of Power has an existing Master Services Agreement for the purchase of wholesale electricity and associated services with American Municipal Power, Inc.; and
WHEREAS, in order to operate the Department’s electricity enterprise, the Division of Power has an ongoing need for safety and training services to prepare lineworker staff to safely and effectively perform their duties constructing and maintaining electric poles, transformers, and lines; and
WHEREAS, in order to operate the Department’s electricity enterprise, the Division of Power has an ongoing need for ancillary AMP membership services such as, diesel generator maintenance, representation on federal power issues, staff training, and customer development services.; and
WHEREAS, in order to maximize cost savings for the Department’s electricity enterprise, the Division of Power has an ongoing need for enrollment in the Community Energy Savings Smart Thermostat Program, which estimates a $79 annual net savings per enrolled thermostat based on transmission and capacity cost projections; and
WHEREAS, it is necessary to modify and extend the Smart Thermostat Program Schedule with American Municipal Power, Inc. through March 31, 2027 to facilitate CWP customer enrollments in the program and associated services required in 2026 by the Division of Power; and
WHEREAS, this ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications; and
WHEREAS, the expenditure of $635,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, as $300,000.00 from object class 02, Materials & Supplies, and $335,000.00 from object class 03, Services, per the accounting codes attached to the ordinance; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities, Division of Power, in that it is immediately necessary to authorize the Director of Public Utilities to modify and increase the Master Services Agreement for the purchase of wholesale electricity and associated services with American Municipal Power, Inc., without delay, all for the immediate preservation of the public health, peace, property, safety and welfare; and now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is hereby authorized to modify and increase the Master Services Agreement with American Municipal Power, Inc. for the purchase of wholesale electricity and associated services for the Department of Public Utilities, including the CES Smart Thermostat Program, in accordance with the terms and conditions as shown in the Master Service Agreement on file in the office of the Division of Power. Modification No.25 to this contract includes $300,000.00 for the purchase of wholesale electric power, $210,000.00 for ancillary services provided by AMP, Inc., and $125,000.00 for the journeyman lineworker training program, for a total modification of $635,000.00.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That the expenditure of $635,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, as $300,000.00 from object class 02, Materials & Supplies, and $335,000.00 from object class 03, Services, per the accounting codes attached to the ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure, and 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.