Explanation
This legislation authorizes the Director of Public Utilities to modify the power supply agreement with American Electric Power Energy Partners, Inc. (AEPEP) to add funding in the amount of $15,310,100.00 which is necessary to purchase power and renewable energy credits for the service months of January & February, 2026 from AEPEP to meet the energy demands of the Department of Public Utilities (DPU) and its customers throughout central Ohio. The Department of Public Utilities currently has a power supply agreement in place with American Municipal Power (AMP), its incumbent purchase power supplier, that is set to expire as of December 31, 2025.
Ordinance 1108-2023 authorized the Director of Public Utilities to conduct a modified request for proposal (RFP) process to negotiate with multiple suppliers and to select a supplier to fulfill the Division of Power’s electric power supply requirements for a one-year term beginning January 1, 2026 and extending for up to three one-year renewal periods. That ordinance also authorized the awarding of and entering into of such a power supply agreement. AEPEP was awarded the bid.
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: Total amount of additional funds needed for this contract modification is to ADD $15,310,100.00 representing the expected required purchased power cost for January & February 2026 ($15,000,000.00) as well as two months of Renewable Energy Credits for the same period (totaling $310,100.00). Total contract amount including this modification is $15,310,100.00.
2. Reason additional funds were not foreseen: The need for additional funds was known at the time of the initial contract.
3. Reason other procurement processes were not used: N/A - this vendor was selected through the RFP process.
4. How was cost determined: Cost was estimated using modeling based on ex...
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