Explanation
BACKGROUND: This ordinance authorizes an increase of an existing contract with American Electric Power Service Corporation (AEPSC) for the purchase of capacity and energy for the Division of Power and Water.
Amount of additional funds to be expended: $55,368,870
Reasons additional goods/services could not be foreseen: The Department of Public Utilities, 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 term of the contract is through May 2010. This legislation will authorize the funding for capacity and energy requirements in 2009.
Reason other procurement processes are not used: The City of Columbus, Department of Public Utilities is obligated by contract to obtain capacity and energy from American Electric Power Service Corporation (AEPSC).
How cost of modification was determined: The modification is based upon estimated requirements for 2009 at rates as established in the existing contract.
Emergency action is requested in order that the encumbering document may be established and funding in place so that services may continue uninterrupted and payments can be made in compliance with the terms of the contract.
Contract Compliance Number: 134922640, expires 01/20/2011.
FISCAL IMPACT: This legislation is contingent upon the passage of the 2009 budget. The amount budgeted in the Electricity Operating Fund 550 for purchase power is $62,113,000. The total amounts spent for purchase power in 2007 and 2008 were $53,866,755 and $53,763,139, respectively.
Title
To authorize the Director of Public Utilities to modify an existing contract with American Electric Power Service Corporation for capacity and energy for the Division of Power and Water; to authorize the expenditure of $55,368,870.00 from the Electricity Operating Fund; and to declare an emergency. ($55...
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