Explanation
This legislation authorizes the Director of the Finance & Management Department to enter into an agreement with AEP Energy, Inc. for the purchase of electric power for various facilities under the purview of the Department of Finance & Management, the Department of Public Service, and the Department of Recreation & Parks.
The City of Columbus, Departments of Finance, Public Service, and Recreation & Parks are retail customers with AEP Ohio and facilities under their purview are metered and billed by AEP Ohio. AEP Energy, Inc. is a competitive retail electric service provider and affiliate of AEP Ohio. The Finance & Management Department has coordinated with AEP Energy, Inc. to reduce the power cost associated with the City facilities currently on the AEP Ohio system.
By switching the generation and transmission of associated facilities currently on the AEP Ohio system to AEP Energy, Inc., the aforementioned City Departments will reduce the cost of electricity by locking in a pre-established rate, which is below current billed KWh rates. AEP Ohio would continue to charge the aforementioned City Departments for distribution and customer charges.
The Department of Finance & Management feels that it is in the best interest of the City of Columbus to enter into this agreement with AEP Energy, Inc. to take advantage of the power cost savings. This ordinance is being submitted as an emergency so that the department can enter into the agreement at the earliest time possible to take advantage of cost savings and to lock in electricity rates, as determined to be appropriate.
FISCAL IMPACT: No funding required for this contract
Contract Compliance No.: AEP Retail Energy 13-4922640, Expires 4-13-13
Title
To authorize the Director of Finance & Managment Department to enter into an agreement with AEP Retail Energy for the purchase of electric power; and to declare an emergency.
Body
WHEREAS, The City of Columbus, Departments of Finance & Management, P...
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