Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to modify Contract Number EL013649 with Central Ohio Bio-Energy, LLC, ('COBE') majority owned by Quasar Energy Group, a Cleveland, Ohio based waste-to-energy company. COBE designs, builds and operates anaerobic digester systems that produce renewable energy in the form of electricity. COBE and the Division of Power, executed an interconnection agreement (Columbus Ordinance #1285-2010) pursuant to which the Generating Facility is interconnected as a "behind the meter" generation unit. This unit is technically capable of producing approximately 6,500,000 kWh per year of excess electricity.
Amount of additional funds to be expended: $250,000.00
Reasons additional goods/services could not be foreseen: The Division of Power currently has a contract in place to purchase excess electricity from the Generating Facility. This legislation authorizes increases in the amounts of the contract to cover the needs for 2013.
Reason other procurement processes are not used: The City of Columbus, Department of Public Utilities is obligated by contract to purchase excess energy from COBE.
How cost of modification was determined: This modification is based upon estimated requirements for 2013 at rates as established in the existing contract.
Contract Compliance Number: 26-1698590, Expires: 9/7/2014
Emergency action is requested in order that purchases may continue without interruption and payments can be made on a timely basis.
FISCAL IMPACT: This ordinance is contingent upon the passage of the 2013 operating budget, Ordinance #2631-2012. The amount budgeted in the Electricity Operating Fund 550 for purchase power is $60,000,000.00. The total amounts spent for purchase power in 2011 and 2012 were $62,789,470.78, and $63,858,428.40, respectively.
Title
To authorize the Director of Public Utilities, Division of Power to enter into a Power Purchase Agreement with Central Ohio Bio-Energy...
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