Allandale Community Centre receives ‘passive’ income by rationing energy use

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How does a Barrie recreation centre make money doing nothing? The answer, according to a memo to council from Rick Pews, director of corporate facilities, lies in being part of a program designed to ration energy use during peak demand periods.
The Demand Response (DR) program, run by the Independent Electrical System Operator’s (IESO), is an energy rationing system for electric power supply, Pews writes in the memo to council. Participants can ration energy use during peak consumption times, presenting them with “price incentives (lower net unit pricing) based on demand response activities during the peak period.”
The Allandale Community Centre has been part of the program since 2013, with a demand reduction target of 75kW.
“Since this date the facility has had a revenue of $16,500. It is important to note that a majority of the revenue is passive and is generated by becoming a participant. Additionally, the risk in not reaching the demand target is with the consultancy, and the client (Allandale Community Centre) does not pay penalties for not achieving the 75kW target,” writes Pew.
“Based on set targets, provincial demand and actual performance, each facility will receive payment for simply agreeing to try to reduce demand and real time energy consumption.”
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