Explanation
BACKGROUND: This legislation authorizes the Director of Finance and Management to negotiate with multiple certified energy suppliers in the State of Ohio for the deregulated electric supply of all City owned facilities on the AEP Ohio distribution system. The legislation also waives provisions of Columbus City Code relating to award of contracts through the Request for Proposal (RFP) process.
The Department of Finance and Management will request proposals from potential energy suppliers and will negotiate energy supply contract terms and conditions with suppliers deemed to have submitted responsive proposals. This process will allow department staff to compare proposals and terms in order to select the best purchase power contract for the City.
The Department of Finance and Management currently has 3 contracts in place for varying kilowatt hours with different expiration dates. Detail of these contracts by Department is provided below:
- Public Utilities - Power; 10,075,000 kWh; December 2017 expiration
- Public Utilities - Sewer and Water; 11,000,000 kWh; April 2018 expiration
- Finance, Public Service, Rec & Parks; 26,000,000 kWh; May 2018 expiration
Based on current contract expiration dates the Department of Finance and Management will need to secure a new contract for the Public Utilities Department for the Division of Power before it expires in December 2017. In addition, depending on market conditions the Department requests the ability to receive bids and negotiate contracts which are expiring in early 2018.
This RFP will solicit pricing options up to 12-months, 17-months, 24-months, or 36-month terms, based on recommendations from its Energy Consultant. The Department may also add a “green power” component to the pricing to support the City’s sustainability objectives.
It is the Department’s best interest to obtain stable prices in advance and take advantage of favorable energy market conditions. Wholesale electric prices are...
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