Explanation
BACKGROUND: This ordinance authorizes the Director of Public Utilities to enter into a contract with American Municipal Power-Ohio, Inc. (AMP-Ohio) as a sole source to provide wholesale electric power and associated services for the Division of Power and Water.
Ordinance 0153-2008, passed February 25, 2008, authorized modifications of the AMP-Ohio contracts for the generic purchase power agreement and the Gorsuch purchase power agreement. The Gorsuch modification has been executed. However, it has been determined that to meet the current needs of the City and AMP-Ohio, the existing generic agreement should be replaced with a new Master Services Agreement with revised terms and conditions. This new Master Services Agreement has been reviewed by the City Attorney's office and the terms and conditions are acceptable to the City.
AMP-Ohio is a non-profit organization for state municipalities acting as a broker on their behalf to purchase power in high volume at the most competitive prices through a bidding process. Under the existing generic agreement, the City obtains power transmitted from NYPA, Shelby and Gorsuch. NYPA has historically been below market since it is from a hydroelectric project. Additional membership services provided by AMP-Ohio such as lobbying, regulatory compliance, training, market analysis, and updates about reliability standards are unique to the municipal power system environment in our area.
Contract Compliance Number: 310943223, expires January 24, 2010.
Emergency action is requested in order that purchases may continue without interruption and payments can be made on a timely basis.
FISCAL IMPACT: $57,302,956 is budgeted in the Electricity Fund 550 for purchase power and an additional $174,000 is budgeted for Amp-Ohio service fees. The total purchased power expenditures for 2006 and 2007 were $37,677,109.56 and $53,866,755, respectively. The remaining balance on the Auditor's Certifi...
Click here for full text