Explanation
BACKGROUND: At the 2020 State of the City, Mayor Andrew J. Ginther announced the City’s intention to pursue Community Choice Aggregation, and committed the City of Columbus to an aggregation program with a 100% renewable energy supply by 2022. The primary goals of the City’s electric aggregation program are to 1) provide competitive retail energy supply costs for Columbus citizens; 2) support renewable energy development, especially local renewable energy generation, to advance Columbus’ sustainable economy; and 3) to ensure that supplier(s) provide quality, reliable service and first-rate customer service. The City is also committed to an aggregation program that supports sustainability efforts, energy efficiency, and other policy priorities of the City that benefit the Columbus community.
This Ordinance authorizes the City of Columbus, Finance and Management Director, to execute an amended and restated Government Aggregation Master Retail Electric Supply Agreement (“MSA”), which will replace the MSA entered into pursuant to authority granted by Ordinance 3214-2023.
Pursuant to Ordinance 1642-2020, the Finance and Management Director was authorized to perform all necessary actions to effect a Governmental Electricity Aggregation program for the City with opt-out provisions pursuant to Section 4928.20 of the Ohio Revised Code for the residents and small businesses in the incorporated areas of the City of Columbus.
Ordinance 3214-2023 amended and restated the original agreement to allow for contract price adjustments due to inflationary pressures, supply chain disruptions, international wars, and legal delays. This amendment also included a stipulation stating a minimum of 60% of clean energy supply be sourced from Ohio-based clean energy projects.
On June 1, 2021, the Governmental Electricity Aggregation program, Clean Energy Columbus, began to provide a 100% renewable energy supply to participating Columbus residents and small businesses. Clean energy for the program has initially been sourced through Renewable Energy Certificates (RECs) while a portfolio of utility scale clean energy projects are constructed. The Clean Energy Columbus is now in its third year of providing 100% renewable energy supply sourced through RECs.
Emergency action is requested to allow contract price adjustments to be in effect as soon as possible so that Clean Energy Columbus’ retail electric supplier, AEP Energy, Inc. can act in reliance on the contract price adjustments to complete transactions necessary to ensure the utility scale clean energy projects that AEP Energy, Inc. secured for the Clean Energy Columbus program are constructed and placed into commercial operation in order to supply the program.
Fiscal Impact: No funding is required for this legislation.
Title
To Authorize the City of Columbus, Finance and Management Director, to enter into an amended and restated Government Aggregation Master Retail Electric Supply Agreement; and to declare an emergency. ($0.00)
Body
WHEREAS, the Ohio Legislature enacted electric deregulation legislation (“Am. Sub. S.B. No. 3”), which authorized the legislative authorities of municipal corporations, townships, and unincorporated areas of the county, to aggregate the retail electrical loads located within their respective jurisdictions and to enter into service agreements to facilitate for those loads the purchase and sale of electricity; and
WHEREAS, such legislative authorities may exercise said authority individually or jointly with any other legislative authorities; and
WHEREAS, governmental aggregation provides an opportunity for residents and small businesses, defined by an annual energy use of 700,000 kWh or less and not part of a national account, to participate collectively in the potential benefits of electricity deregulation, which include, but are not limited to, competitive electricity rates, increased consumer choice, increased demand for renewable energy to help grow the industry and workforce, and a 100% renewable energy supply; and
WHEREAS, the City of Columbus is committed to continuing to provide governmental aggregation and a 100% renewable energy supply; and
WHEREAS, the City of Columbus has a community-wide goal to be carbon neutral by 2050, aligning with global efforts to combat climate change and limit global temperature rise by 1.5 degrees Celsius, and is committed to emissions reduction efforts, energy efficiency, and renewable energy development to help meet these goals; and
WHEREAS, pursuant to Ordinance 1642-2020, passed July 20, 2020, the City of Columbus established an Electric Aggregation Program in furtherance of these goals, and the City of Columbus Finance and Management Director entered into a Government Aggregation Master Retail Electric Supply Agreement with AEP Energy, Inc. on March 18, 2021; and
WHEREAS, pursuant to Ordinance 3214-2023, passed December 4, 2023 the Governmental Aggregation Master Retail Electric Supply Agreement (“MSA”) with AEP Energy Inc., was amended and restated to allow for an adjusted price to complete transactions necessary to ensure the clean energy projects are constructed; and
WHEREAS, it is necessary to enter into an amended and restated Governmental Aggregation Master Retail Electric Supply Agreement (“MSA”) with AEP Energy Inc., which will replace the MSA entered into per Ordinance 3214-2023 to increase the energy price for clean energy assets and reduce the Ohio-based clean energy supply source minimum; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director to enter into an agreement to amend the Government Aggregation Master Retail Electric Supply Agreement to ensure projects can be secured as quickly as possible so that Columbus residents and small businesses can benefit from clean energy electric supply, all for the immediate preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management is hereby authorized to enter into an amended and restated Governmental Aggregation Master Retail Electric Supply Agreement with AEP Energy, Inc.
SECTION 2. That for the reasons states 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 the passage if the Mayor neither approves nor vetoes the same.