Explanation
BACKGROUND: On October 26, 2004, the City Attorney entered into a contract with McNees, Wallace & Nurick LLC, a law firm knowledgeable in electric purchase power issues, in the amount of $10,000, to provide specialized legal services for the Division of Electricity (City) relating to the Power Purchase and Sale Agreement between the City and Constellation Commodities Group and American Municipal Power-Ohio (Constellation). Constellation, which is the Division of Electricity's energy requirements provider, is subject to a new service charge created by the Federal Energy Regulatory Commission (FERC) as part of the efforts to deregulate the electric power industry. This charge, which is called the Seams Elimination Cost Allocation (SECA), is to be paid, by FERC order, by those receiving the energy. The City and Constellation disagree over the interpretation of the City's contract as to who is liable for payment of the SECA charges. The City Attorney through encumbrances contracted with McNees, Wallace & Nurick in 2004 and 2005, for a total of $20,000. Because it is unlikely that the SECA issues will be quickly resolved, it is estimated that an additional $15,000 is needed to cover the specialized legal services required.
Contract Compliance Number: 231256003
FISCAL IMPACT: There is sufficient budget authority in the Division of Electricity's Operating Fund to cover this expenditure
EMERGENCY JUSTIFICATION: The City has a critical hearing before the Federal Energy Regulatory Commission on October 20, 2005, emergency action is requested as not the delay the monies necessary to continue the legal services of David Kleppinger, the City's special counsel, whose expertise is this matter is needed.
Title
To authorize the City Attorney to modify an existing contract with McNees Wallace & Nurick LLC to act as special counsel to represent the City regarding the Seams Elimination Cost Allocation (SECA) purchase power issues relating...
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