Explanation
BACKGROUND: This ordinance authorizes the SECOND AMENDMENT TO THE EEI MASTER POWER PURCHASE AND SALE AGREEMENT between American Electric Power Service Corporation ("AEPSC") acting as agent for AEP Operating Companies ("Party A") and the City of Columbus, Ohio ("Party B").
American Electric Power is requesting this Amendment to its power supply contract with the City in order to comply with Section 4928.17 of the Ohio Revised Code, which requires corporate separation of electric utilities serving Ohio as the State moves toward competitive retail electric service in the investor-owned utility sector. The Public Utilities Commission of Ohio (PUCO) has approved AEP's separation plan in Case No. 12-1126-EL-UNC, and has authorized its implementation.
The Parties have previously entered into an EEI Master Power Purchase and Sale Agreement ("Master Agreement") dated as of October 19, 2006, and first amended agreement on Ordinance 0041-2012 dated April 2, 2012 amending the existing contract by modifying the definition of "AEP Operating Companies". The Parties desire to further amend the Master Agreement.
Effective upon the date and immediately prior to Ohio Power Company's corporate separation of its generation assets from its transmission and distribution assets, this Amendment will: a) delete the definition of "AEP Operating Companies" in its entirety and replace it with the following: "AEP Operating Companies" means the electric utility subsidiaries of American Electric Power Company, Inc., consisting of Appalachian Power Company, Indiana Michigan Power Company and Kentucky Power Company. "AEP Operating Companies" may include fewer than all of the listed companies or may include AEPSC, where the context requires such interpretation." b) delete all references to the Ohio Power Company.
AEPSC currently anticipates that December 31, 2013 will be the date upon which the Ohio Power Company's corporate separation will be consummated, and AEPSC will prompt...
Click here for full text