A new revenue stream may soon be realized for the village of Fredonia now that it entered into an agreement with Demand Response Partners of Buffalo.
The Fredonia Village Board accepted the agreement with the energy management company at a recent meeting. Village Administrator Richard St. George estimated Fredonia will make roughly $20,000 per year for reducing its electricity intake at the wastewater treatment plant when called upon.
"We have a generator there, so when they call during the year, let's say during the summer when you have a big demand for energy due to air conditioners running when it gets real hot and there's a chance of rolling brownouts, Demand Response Partners will call the people they have on its program and say, 'We want to take you off the grid for the next two hours, so we want you to be running your generator,'" St. George explained.
OBSERVER Photo by Greg Fox
The Fredonia Village Board recently accepted an agreement with Demand Response Partners for the village to receive compensation for reducing electricity at the wastewater treatment plant when called upon. Pictured, from left: Trustee Phyllis Jones, Village Administrator Richard St. George and Mayor Stephen Keefe.
"They will pay us for complying with them, and our payout is 75 percent of that electric savings. They will give us that amount in cash," he added. "They get paid by the utility to come off the electric grid because it relieves pressure."
Before any savings can be realized, Demand Response Partners must inspect equipment at the treatment plant to see how much can temporarily be taken offline when called upon. That will determine how many kilowatt-hours the plant can reduce during a call.
The company will also install all metering equipment for free.
"They have to come down here because we're not going to be able to run the whole plant off the generator," St. George said. "There's only certain equipment that can come off the grid."
Demand Response Partners will call upon the village to reduce its electric intake whenever there is stress on the grid, which is roughly four or five times per year. If the village cannot afford to reduce electricity at that time, no penalty will be incurred.
Mayor Stephen Keefe called the agreement a "no-brainer" for the village and wished to expand it in the future.
"What I'd like to see us do is maybe increase the capacity of the generator for use at village hall so that we could ... have a revenue source there," he said.
Also during the meeting, Pomfret Town Court was permitted to paint the court clerk's and judge's offices and patch all holes at no cost to the village.
Daniel Sullivan of Cleveland Avenue was added to the M.M. Fenner Hose Company's active rolls.
The next meeting is Monday at 7:30 p.m., with a workshop one hour prior. A public hearing for an override of the state-mandated tax cap will be the first order of business at the meeting.
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