City of Columbus - File #: 0904-2007

• File #: 0904-2007
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 5/30/2007
• In control: Utilities Committee
• On agenda: 6/25/2007
• Final action: 6/27/2007
• Title: To authorize the Director of Public Utilities to enter into a Service Agreement for Interconnection and Local Delivery Service Agreement between the City of Columbus and American Electric Power Service Corporation; and to declare an emergency. ($0)

Date	Ver.	Action By	Action	Result
6/27/2007	1	CITY CLERK	Attest
6/26/2007	1	MAYOR	Signed
6/25/2007	1	Columbus City Council	Approved	Pass
6/25/2007	1	COUNCIL PRESIDENT	Signed
6/8/2007	1	EBOCO Reviewer	Sent for Approval
6/8/2007	1	ODI DIRECTOR	Reviewed and Approved
6/8/2007	1	Utilities Drafter	Sent for Approval
6/8/2007	1	CITY ATTORNEY	Reviewed and Approved
6/8/2007	1	Utilities Drafter	Sent to Clerk's Office for Council
6/6/2007	1	UTILITIES DIRECTOR	Reviewed and Approved
6/6/2007	1	Utilities Drafter	Sent for Approval
6/4/2007	1	Utilities Reviewer	Sent for Approval
6/1/2007	1	Utilities Drafter	Sent for Approval
6/1/2007	1	Utilities Drafter	Sent for Approval
6/1/2007	1	Utilities Reviewer	Reviewed and Approved
6/1/2007	1	Utilities Drafter	Sent for Approval
5/30/2007	1	Utilities Drafter	Sent for Approval

Explanation
BACKGROUND: This ordinance authorizes the Public Utilities Director to sign an Interconnection and Local Delivery Service Agreement between the City of Columbus and American Electric Power Service Corporation.

The United States Federal Energy Regulatory Commission (FERC) issued its Order 2000 in December of 1999 to establish Regional Transmission Organizations to control and monitor high voltage transmission service in the United States. 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.

The reason for executing this agreement is because AEP has become a member of PJM. The agreement is a FERC requirement and, therefore, a PJM requirement. The agreement is required by PJM because PJM is the transmission provider and controls the usage of the transmission lines. AEP owns the transmission lines but does not control their usage. ILDSA has a term of one year but has an evergreen clause and will continue as long as AEP is participating in PJM. If another vendor becomes our power provider in the future, we will still have to have the ILDSA agreement with AEP because we would still use their transmission lines through PJM. The ILDSA agreement, since it covers local transmission-related services, is needed regardless of whether AEP or a third party supplies wholesale power to the City of Columbus.

FISCAL IMPACT: There is no fiscal impact on the current budget as the cost of the transmission service provided by PJM is currently included in the existing contract for capacity and energy between the City of Columbus and American Electric Power Service Corp. (AEPSC), authorized by Ordinance 0837-2006, passed May 22, 2006, and subsequently funded by Ordinances 2021-2006, passed December 4, 2006, and 0106-2007,...