Explanation
BACKGROUND: This ordinance authorizes modifications of Contract Numbers CT-07199 and CT-09743 with American Municipal Power-Ohio, Inc. (AMP-Ohio) for the purchase of wholesale electricity and associated services. This legislation also authorizes the transfer of appropriation authority within the Electricity Operating Fund to provide funding for the purchase power needs for the remainder of 2004.
Amount of additional funds to be expended: $770,000
Reasons additional goods/services could not be foreseen: An increase in purchase power is needed to pay for increased costs in transmission expense and Gorsuch operations due to coal price increases and SO2 sulfur emissions control upgrades.
Beginning October 1, 2004, the Division of Electricity is no longer receiving electricity through the AEP network transmission system (NTS). The previous AEP NTS transmission service is now regulated by FERC through the Regional Transmission Organization (RTO) known as PJM (Pennsylvania, Jersey, Maryland). Our previous AEP NTS was through Amp-Ohio. Amp-Ohio contractually operates network transmission services for several Ohio communities and Columbus is one of those communities. It is now necessary to modify the Amp-Ohio Generic agreement between City of Columbus and Amp-Ohio in order to establish a new agreement for transmission services through PJM.
Also, the City of Columbus has a contract with Amp-Ohio to purchase power from the Gorsuch Coal-Fired Power Plant. Due to increases in coal prices and sulfur emissions control upgrades, there is need to increase funds to pay for these increased costs of producing power. The City of Columbus' Gorsuch power costs are recovered or credited towards payments made to Constellation Power Source (CPS) under a fixed price contract.
Reason other procurement processes are not used: AMP-Ohio is a non-profit organization for state municipalities and, acting as a broker, has contracted on the City's b...
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