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 2023 pole attachment rental fees for the Division of Power (DOP), in accordance with an existing agreement for the Joint Use of Poles (the “Agreement”) executed by the City and Columbus Southern Power, dba AEP. The City consented to the assignment of the Agreement by Columbus Southern Power to Ohio Power Company through the passage of ORD #0317-2014 after the merger of AEP Ohio’s two operating companies, with Ohio Power Company the surviving entity.
DOP and AEP both own and operate electric transmission and distribution system facilities throughout Franklin County. These facilities include certain poles that have attached equipment owned by the other party. The Agreement provides the terms, conditions, and rates for the joint use of these 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.
The invoice from AEP for 2023 annual rental fees, reflecting 15,469 attachments on AEP poles less 2,835 AEP attachments on City-owned poles, totals $189,525.00. 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.
1. Amount of additional funds: The total amount of additional funds needed for this contract modification #14 is ADD $189,525.00....
Click here for full text