City of Columbus - File #: 1108-2023

• File #: 1108-2023
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 4/5/2023
• In control: Public Utilities Committee
• On agenda: 5/1/2023
• Final action: 5/3/2023
• Title: To authorize the Director of Public Utilities to conduct a modified request for proposal process to negotiate with multiple suppliers and to select a supplier to fulfill the Division of Power’s electric power supply requirements for a one-year term beginning January 1, 2026 and extending for up to three year one-year renewal periods; to authorize the awarding of and entering into of such a power supply agreement; to authorize the Division to implement the strategy to purchase energy products on an ongoing basis if so provided under the terms of the power supply agreement; to waive provisions of Columbus City Code relating to the award of contracts through the request for proposal process as permitted by City Code Section 329.15; to authorize the expenditure of $1.00 from the Electricity Operating Fund; and to declare an emergency. ($1.00)

Date	Ver.	Action By	Action	Result
5/3/2023	1	ACTING CITY CLERK	Attest
5/2/2023	1	MAYOR	Signed
5/1/2023	1	COUNCIL PRESIDENT	Signed
5/1/2023	1	Columbus City Council	Approved	Pass

Explanation

This legislation authorizes the Director of Public Utilities to conduct a modified Request for Proposal (“RFP”) process, which will include discussion and negotiation with short-listed proposers, and to enter into a power supply agreement with the selected supplier to serve the Department of Public Utilities’ (“Department”) purchased power requirements beginning January 1, 2026. The resulting agreement will be for a term of up to three years to begin upon the expiration of the existing power supply agreement on December 31, 2025.

Since the Department executed its existing power supply agreement, it has become a counterparty to certain solar renewable energy projects under development within the City that will serve as a source of supply for the Department’s Division of Power (“Division”). As these new renewable projects serving the Division’s load achieve commercial operation, it may be appropriate for the Department to utilize an approach to power procurement that differs from that which it has previously used. Accordingly, this legislation authorizes the Department to issue an RFP that requests suppliers to offer proposals to address the Department’s changing purchased power requirements in a way that reduces market timing risks, minimizes liquidation potential, and maintains awarding of load-serving entity and back-office functions with the selected supplier. The RFP will also invite proposals that set forth other innovative approaches for the Department to procure its remaining power requirements given the Department’s reliability and sustainability goals.

This legislation authorizes the Department to enter into a power supply agreement that will best meet the Department’s requirements in light of these renewable energy projects and changing market conditions. The agreement may implement either a fixed-price, full-requirements supply with a single supplier for a fixed term or a laddering approach. Under a laddering approach, the Department ...