Explanation
The purpose of this legislation is to authorize the Director of Public Utilities to modify and extend an existing agreement with AEP Retail Energy for electric power costs services associated with the water treatment process.
The City of Columbus, Division of Water is a retail customer with AEP Ohio and owns a water treatment infrastructure that is metered and billed by AEP Ohio. AEP Retail Energy is a competitive retail electric service provider and affiliate of AEP Ohio. The Division of Water has coordinated with AEP Retail Energy to reduce the power cost associated with the water facilities on the AEP Ohio system. By switching the generation and transmission of the water treatment infrastructure on the AEP Ohio system to AEP Retail Energy in 2011, the Division of Water reduced the cost power per megawatt hour (MWh) from $81.52 to $62.75 for an approximate 40 month savings of $925,000.00. AEP Ohio continues to charge the Division of Water for distribution and customer charges. All contractual information has been reviewed and approved by the City Attorney's Office. The Department of Public Utilities feels it is in the best interest of the City of Columbus to modify and extend this agreement with AEP Retail Energy to take advantage of the power cost savings. This ordinance is being submitted as an emergency so that the department will not have interruption in the agreement and will be able to continue to take advantage of the cost savings to the Division of Water.
1. Amount of additional funds: There are no additional funds needed. This amendment is to modify and extend the existing agreement for an additional 40 months beginning January 2015.
2. Reason additional needs were not foreseen: This is a planned modification to be completed prior to the January 2015 expiration date.
3. Reason other procurement processes not used: This is a continuation of the current agreement that benefits the Division of Water and its ratepayters by reducing the ...
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