Explanation
This ordinance authorizes the Director of Public Utilities to modify the Power Purchase Agreements with DG Columbus Jackson Pike, LLC and DG Columbus Solar, LLC, to provide funding for the purchase of energy and environmental attributes generated at the photovoltaic (PV) solar energy facilities at the Jackson Pike Wastewater Treatment Plant and the Parsons Avenue Water Plant.
The solar PV facilities have approximately 27 MWAC and 18 MWAC aggregate nameplate capacity at the Parsons Avenue and Jackson Pike sites, respectively. MWAC means a megawatt of alternating current electric generating capacity.
Ordinance 0210-2021 authorized the Director of Public Utilities to enter into a letter of intent and negotiate solar power purchase agreements for the Division of Power and to enter into associated interconnection agreements. It also authorized the Director of Finance to enter into license or lease agreements for selected Department of Public Utilities (DPU) sites. Ordinance 3114-2022 modified the terms and conditions of these power purchase agreements to increase the negotiated price and to amend the right of entry agreements.
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 is $1,500,000.00 to cover payments through March of 2025.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract with the expectation that amounts would be developed later, after contract negotiations that included the price per megawatt hour (MWh).
3. Reason other procurement processes were not used: N/A - this vendor was selected through the RFP process and this is a planned modification.
4. How was cost determined: The modification is based upon estimated requirements to purchase the solar energy less es...
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