Explanation
BACKGROUND:
This legislation authorizes the Director of Public Utilities to modify and increase the power supply agreement with American Electric Power Energy Partners, Inc. (AEPEP) to add funding in the amount of $75,000,000.00 which is necessary to purchase power and renewable energy credits for the service months of March, 2026 through the end of February, 2027, from AEPEP to meet the energy demands of the Department of Public Utilities (DPU) and its customers throughout central Ohio.
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 such a power supply agreement. AEPEP was awarded the bid.
Ordinance 3020-2025 authorized the Director of Public Utilities to modify the power supply agreement with AEPEP to add funding in the amount of $15,310,100.00 which was necessary to purchase power and renewable energy credits for the service months of January & February, 2026.
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 $75,000,000.00 representing the expected required purchased power cost for March 2026 through February 2027 ($73,139,400.00) as well as twelve months of Renewable Energy Credits for the same period (totaling $1,860,600.00). Total contract amount including this modification is $90,310,000.00.
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 use...
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