Explanation
This ordinance authorizes the Director of Public Utilities to modify and increase contract #EL011028 with Ohio Power Company dba American Electric Power (AEP) to provide funding for the payment of 2021 pole attachment rental fees for the Division of Power, in accordance with an existing agreement for the Joint Use of Poles (the “Agreement”) executed by the city and Columbus Southern Power dba AEP. Columbus consented to the assignment of the Agreement by Columbus Southern Power to Ohio Power Company through the passage of ORD #0317-2014.
The City of Columbus, Division of Power, and Ohio Power Company dba American Electric Power (AEP) own and operate electric transmission and distribution system facilities throughout Franklin County. Each party owns certain poles which have equipment owned by the other party attached to such poles. The Agreement provides the terms, conditions and rates to be paid for the joint use of poles. Per the terms of the Agreement, an inventory of jointly used poles was conducted in 2012. The Agreement provides that, in the event a pole inventory discloses any attachments that were not previously authorized by the pole owner, the attaching party is to pay annual charges for the attachments for a period of five (5) years or the period from the date of the last inventory, whichever is less, plus interest, at the current Interest Rate.
A pending invoice from AEP for annual rental fees in the amount of $175,410.00 for the period of January 1, 2021 through December 31, 2021 must be paid.
For annual rental fees going forward, the contract modification provides that funds will be approved annually by ordinance of City Council.
This Ordinance is being submitted in accordance with the relevant provisions of Chapter 329 of City Code pertaining to contract modifications.
SUPPLIER: Ohio Power Company dba American Electric Power (AEP), DAX Vendor #006032, EIN #31-4271000, Expires March 24, 2023.
Ohio Power Company dba A...
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