Explanation
BACKGROUND: This ordinance authorizes a modification of DL012676 with American Electric Power Service Corporation (AEPSC) for the purchase of capacity and energy for the Division of Power and Water in 2007.
Amount of additional funds to be expended: $0
Reasons additional goods/services could not be foreseen: The Division of Power and Water entered into a contract for capacity and energy with American Electric Power Service Corporation (AEPSC) in 2006 based upon the lowest, responsive proposal offered. The original contract was established in the amount of $1.00 as authorized by Ordinance 0837-2006, passed May 22, 2006. Subsequent ordinances have been passed to provide funding for the purchase of capacity and energy. PJM Interconnection, L.L.C. (PJM), is a Regional Transmission Organization offering transmission service to eligible customers, and having functional control over the American Electric Power Company Inc.'s (AEP) East Zone transmission network upon integration of AEP's East Zone into PJM. PJM implemented marginal-loss pricing on June 1, 2007 making it necessary to add a new section to the city's contract with AEPSC to address the terms of marginal transmission losses. The new Section 6 (d) to be added will read as follows:
"Seller has included the cost of the transmission losses in its prices in Section 6 (a). As such, Seller shall receive Company's Share of any refund allocation from PJM arising from any over-collection by PJM of marginal transmission losses during the Delivery Period."
Reason other procurement processes are not used: The City of Columbus, Department of Public Utilities is obligated by contract to obtain capacity and energy services from American Electric Power Service Corporation (AEPSC).
How cost of modification was determined: There is no additional cost associated with this modification.
Emergency action is requested in order that the modification may be executed and the terms regard...
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