Explanation
BACKGROUND: As authorized by Ordinance Number 2289-2012, passed October 29, 2012, the City of Columbus, Department of Public Utilities, Division of Power, through the request for Proposal (RFP) process and waiving the relevant Sections of Chapter 329 of the Columbus City Codes, negotiated with suppliers to provide an essentially full-requirements contract for capacity and energy for its needs, at a fixed-price, for electrical energy. Four proposals were received. It was determined that AEP Energy Partners, Inc. met all of the Division's requirements and offered the lowest-priced and most responsive proposal.
This legislation will authorize the Director of Public Utilities to obtain capacity and energy from AEP Energy Partners, Inc. based upon the agreed upon terms and conditions of the contract and authorize the expenditure of funds estimated to cover capacity and energy charges for 2018.
AEP Energy Partners, Inc. - Contract Compliance Number: 77-0690681
EMERGENCY DESIGNATION: Emergency action is requested in order that purchases may continue without interruption and payments can be made on a timely basis.
FISCAL IMPACT: $58,183,000.00 was budgeted for 2018 in the Electricity Operating Fund for purchase power. This ordinance is contingent upon passage of the 2018 Operating Budget (Ordinance 3009-2017).
2017 $56,402,000.00
2016 $9,700,000.00
Title
To authorize the Director of Public Utilities to obtain capacity and energy for the Division of Power in accordance with terms and conditions of the contract with AEP Energy Partners, Inc.; and to authorize the expenditure of $57,200,000.00 from the Electricity Operating Fund; and to declare an emergency. ($57,200,000.00)
Body
WHEREAS, Ordinance Number 2289-2012, passed October 29, 2012, waived the relevant Sections of Chapter 329 of the Columbus City Codes, to authorize the Director of Public Utilities to negotiate and enter into contract for purchase power; and
WHEREAS, four proposals were received and through negotiations it was determined that AEP Energy Partners, Inc. met all requirements and offered the lowest-priced and responsive proposal; 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 to modify a contract with AEP Energy Partners, Inc. so that purchases may continue without interruption and payments for purchased power may be made on a timely basis for the 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 Public Utilities be and is hereby authorized to obtain capacity and energy for the Division of Power in accordance with terms and conditions of the contract with AEP Energy Partners, Inc.
SECTION 2. 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 3. That the expenditure of $57,200,000.00, or so much thereof as may be needed, is hereby authorized in Fund 6300 Electricity Operating Fund in object class 02 Materials and Supplies per the accounting codes in the attachment to this ordinance.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.