Explanation
BACKGROUND:
This legislation authorizes the Director of Public Utilities to modify and increase the power supply agreement with American Electric Power Energy Partners, Inc. (AEPEP) to add funding in the amount of $75,000,000.00 which is necessary to purchase power and renewable energy credits for the service months of March, 2026 through the end of February, 2027, from AEPEP to meet the energy demands of the Department of Public Utilities (DPU) and its customers throughout central Ohio.
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. AEPEP was awarded the bid.
Ordinance 3020-2025 authorized the Director of Public Utilities to modify the power supply agreement with AEPEP to add funding in the amount of $15,310,100.00 which was necessary to purchase power and renewable energy credits for the service months of January & February, 2026.
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 $75,000,000.00 representing the expected required purchased power cost for March 2026 through February 2027 ($73,139,400.00) as well as twelve months of Renewable Energy Credits for the same period (totaling $1,860,600.00). Total contract amount including this modification is $90,310,000.00.
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 March 2026 through February, 2027, utilizing anticipated usage and costs of the current purchase power supply agreement with AEPEP and previous purchase power supply agreement with AMP, and including twelve 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)
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:
$75,000,000.00 is budgeted and available for this purchase.
$15,310,000.00 was spent in 2026 YTD
$0.00 was spent in 2025
$0.00 was spent in 2024
EMERGENCY DESIGNATION:
This ordinance is being submitted as an emergency in order to allow the purchase of power necessary to keep the Division of Power’s operations running safely and without interruption.
Title
To authorize the Director of Public Utilities to modify and increase the power supply agreement for the purchase of wholesale electric power and renewable energy credits with American Electric Power Energy Partners, Inc. for the Division of Power; to authorize the expenditure of $75,000,000.00 from the Electricity Operating Fund; and to declare an emergency. ($75,000,000.00)
Body
WHEREAS, the Division of Power has an existing power supply agreement for the purchase of wholesale electric power and renewable energy credits with American Electric Power Energy Partners, Inc.; and
WHEREAS, it is necessary to modify and increase the existing agreement with American Electric Power Energy Partners, Inc. in the amount of $75,000,000.00 and to authorize the expenditure in order to provide wholesale electric power and renewable energy credits 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 $75,000,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, as $75,000,000.00 from object class 02, Materials & Supplies, 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 power supply agreement for the purchase of wholesale electricity and renewable energy credits with American Electric Power Energy Partners, Inc., without delay, 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 Public Utilities is hereby authorized to modify and increase the power supply agreement with American Electric Power Energy Partners, Inc. for the purchase of wholesale electricity and renewable energy credits for the Department of Public Utilities, this modification of the contract includes $73,139,400.00 for the purchase of wholesale electric power, $1,860,600.00 for renewable energy credits, for a total modification of $75,000,000.00.
SECTION 2. That this modification is in accordance with the relevant provisions of Chapter 329 of City Code.
SECTION 3. That the expenditure of $75,000,000.00 or so much thereof as may be needed, is hereby authorized in Fund 6300, Electricity Operating Fund, as $75,000,000.00 from object class 02, Materials & Supplies, 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.