Explanation
BACKGROUND: This legislation authorizes the Director of Public Utilities to negotiate a renewable energy purchase agreement and interconnection agreement for the Division of Power with Columbus Solar Park LLC, an affiliate of BQ Energy Development, LLC.; authorizes the Director of Finance to enter into license or lease agreements as necessary related to this interconnection agreement; authorizes the Director of Public Utilities to enter into a benefits sharing agreement with AEP Energy Partners, Inc. (AEPEP); and waives the competitive bidding provisions of Columbus City Code relating to award of contracts through the RFP process.
The Columbus Solar Park is a development by SWACO and BQ Energy on a 173-acre SWACO-owned property that once served as Franklin County’s sanitary landfill and is located between Jackson Pike and I-71 in Grove City. This project is expected to be completed in late 2022 and will connect the new solar array to the electric power grid through the City’s Division of Power. AEP Energy Partners (AEPEP) will be the initial off-taker of 100 percent of the output of the 50-MW solar park that BQ Energy Development LLC will build. After approximately three years of operation of the facility, the City will be the off-taker of 50 percent of the output. After approximately eight years of operation, the City will be the off-taker of 100 percent of the output. Purchase power agreements and interconnection agreements will be entered into to facilitate this development.
A benefits sharing agreement between the City and AEP Energy Partners (AEPEP) will outline the terms and conditions for the sharing of transmission benefits, capacity benefits, and ancillary services revenue, less any cost and benefit reductions, between the City and AEPEP. AEPEP’s Sharing Percentage shall be equal to ninety percent (90%) and City’s Sharing Percentage shall be equal to ten percent (10%).
The Department of Public Utilities seeks to waive the competi...
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