Explanation
BACKGROUND: The purpose of this legislation is to authorize the Director of Public Utilities to pay the Ohio Power Company dba American Electric Power (AEP) for pole attachment rental fees in accordance with an agreement signed in 2002 between the city and Columbus Southern Power dba AEP and to modify said agreement to reflect amended terms and conditions. On 4/1/2012 the Public Utilities Commission of Ohio (PUCO) approved AEP Ohio's Electric Security Plan which authorized the merging of its two operating companies, Columbus Southern Power and Ohio Power with the Ohio Power Company, the surviving entity. With the merger, Columbus Southern Power’s contractual obligations were assigned to Ohio Power Company. By this legislation, Columbus consents to the assignment of the Agreement for Joint Use of Poles by Columbus Southern Power to Ohio Power Company.
The City of Columbus, Division of Power and AEP own and operate electric transmission and distribution system facilities throughout Franklin County. Each party owns certain poles which have facilities owned by the other party attached to such poles. An agreement signed in 2002 between Columbus Southern Power and the City of Columbus authorized the terms, conditions and rates to be paid for the joint use of poles. The payment terms of said agreement provided a setoff of the amounts Columbus Southern Power would otherwise owe the City under Section 910 for right-of-way permit fees. These fees were deducted originally from the Transportation Right A Way fees until such time an audit was conducted between the City of Columbus and AEP.
In 2007 the pole attachment audit was conducted and starting in December 2008, it was determined that the joint use fees would no longer be deducted from AEP's Right-of-Way Permit fees and that AEP would be allowed to bill the Division of Power directly for its joint pole usage.
A pending invoice from AEP for annual rental fees in the amount of $169,050.00 for the peri...
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