Explanation
BACKGROUND: The Department of Finance and Management requests establishing a Special Revenue Fund entitled “Sustainable Columbus Fund”, which is authorized to accept funds from AEP Energy, Inc. in connection with the Community Choice Aggregation program known as Clean Energy Columbus enacted by the City of Columbus.
The Clean Energy Columbus program allows the City of Columbus to pool together the retail electrical loads of their residents and small businesses to contract for energy on their behalf. This process, known as Governmental Aggregation or sometimes Community Choice Aggregation, provides an opportunity for residential and small business consumers to participate collectively in the potential benefits of electricity deregulation, which include, but are not limited to, competitive electricity rates, increased consumer choice, an increased demand for renewable energy to help grow the industry, and a 100% renewable energy supply - which means a healthier and more equitable living environment for Columbus residents.
To achieve these benefits, Ordinance 1642-2020 authorized the City of Columbus to perform all necessary actions to effect a Governmental Electricity Aggregation program for the City with opt-out provisions pursuant to Section 4928.20 of the Ohio Revised Code. The City added this program to the ballot on November 3, 2020 and it was approved by the majority of the electors, as required by law.
Pursuant to the authority granted by Ordinance 1642-2020, the City entered into a Governmental Aggregation Master Retail Electric Supply Agreement with AEP Energy, Inc. This Master Supply Agreement provides for the supply of electricity for City of Columbus program participants, both residential and commercial. In addition, this agreement includes in its overall generation supply rate a Community Grant fund rate for all retail electric supply that is consumed and paid for by customers participating in the Community Choice Aggregation program. Th...
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