Explanation
This legislation authorizes the Director of Public Utilities to modify the power supply agreement with American Electric Power Energy Partners, Inc. (AEPEP) to add funding in the amount of $15,310,100.00 which is necessary to purchase power and renewable energy credits for the service months of January & February, 2026 from AEPEP to meet the energy demands of the Department of Public Utilities (DPU) and its customers throughout central Ohio. The Department of Public Utilities currently has a power supply agreement in place with American Municipal Power (AMP), its incumbent purchase power supplier, that is set to expire as of December 31, 2025.
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 of such a power supply agreement. AEPEP was awarded the bid.
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: Total amount of additional funds needed for this contract modification is to ADD $15,310,100.00 representing the expected required purchased power cost for January & February 2026 ($15,000,000.00) as well as two months of Renewable Energy Credits for the same period (totaling $310,100.00). Total contract amount including this modification is $15,310,100.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract.
3. Reason other procurement processes were not used: N/A - this vendor was selected through the RFP process.
4. How was cost determined: Cost was estimated using modeling based on expected purchase power requirements for January & February, utilizing anticipated usage and costs of the current purchase power supply agreement with AMP and including two months of Renewable Energy Credit expense for the same time period.
SUPPLIER:
AEP Energy Partners, Inc. (AEPEP) | 1 Riverside Plaza, 20th Floor, Columbus, OH 43215 | 614-204-9719 D365 Vendor #010283 | Federal EIN on file | Expires 11/7/2025 (pending update) | AEPEP 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:
The requested $15,310,100.00 has been budgeted for by the Division of Power and is necessary for this purchase.
$0.00 was spent in 2025 YTD (as of 10.30.2025)
$0.00 was spent in 2024
$0.00 was spent in 2023
Title
To authorize the Director of Public Utilities to modify the power supply agreement with American Electric Power Energy Partners, Inc. (AEPEP) to add funding in the amount of $15,310,100.00; and to authorize the expenditure of $15,310,100.00 from the Electricity Operating Fund. ($15,310,100.00)
Body
WHEREAS, 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 year one-year renewal periods; and
WHEREAS, that ordinance also authorized the awarding of and entering into of such a power supply agreement, and American Electric Power Energy Partners, Inc. (AEPEP) was awarded the bid; and
WHEREAS, this ordinance authorizes the Director of Public Utilities to modify the power supply agreement with American Electric Power Energy Partners (AEPEP); and
WHEREAS, the Department of Public Utilities currently has a power supply agreement in place with American Municipal Power (AMP), its incumbent purchase power supplier, that is set to expire as of December 31, 2025 and;
WHEREAS, the expenditure of $15,310,100.00 or so much thereof as may be needed, is hereby authorized from object classes 02, Materials & Supplies, in the Electricity Operating Fund, per the accounting codes in the attachment to this ordinance; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Public Utilities to authorize the Director of Public Utilities to modify the power supply agreement with American Electric Power Energy Partners (AEPEP) to add funding in the amount of $15,310,100.00; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Public Utilities is authorized to modify the power supply agreement with American Electric Power Energy Partners, Inc, (AEPEP) to add funding in the amount of $15,310,100.00.
SECTION 2. That the expenditure of $15,310,100.00 or so much thereof as may be needed, is hereby authorized from object class 02, Materials & Supplies, in the Electricity Operating Fund, per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 4. 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 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.