AGO

The Art Gallery of Ontario (AGO) is celebrating its 125th anniversary this year, and we congratulate the AGO on this important milestone.


Today, the AGO is considered one of the largest art museums in North America with a collection of over 120,000 works of art. Currently 583,000 ft2 and growing, the gallery ranks among Ontario’s premier cultural attractions, drawing over one million visitors annually. But like most well-established cultural icons, its origins were far more modest.

The Art Museum of Toronto began life on July 4, 1900, at 165 King Street West. A few years later, it relocated to ‘The Grange’, a large home bequeathed to the Museum and still part of the AGO today. In 1919, the name was changed to the Art Gallery of Toronto. Admission to its three galleries was 25 cents. In 1920, the Gallery hosted the first exhibition by the newly formed Group of Seven. In 1966, the name was changed again, to the Art Gallery of Ontario, underscoring the growing importance of the gallery.

HH Angus began providing consulting services to the AGO in 1925, creating design and engineering drawings for its first HVAC system and we subsequently worked on numerous projects for the gallery. For its comprehensive 2008 ‘Transformation AGO’ project, we acted as the mechanical engineering and vertical transportation consultants.

The Transformation project was designed by world-renowned architect Frank Gehry and included 97,000+ ft2 of new space to increase viewing areas by 47%, plus 187,000 ft2 of renovations to the existing space. Innovative design considerations were implemented for phased construction, installation and commissioning, and in the integration of the new and existing spaces.

‘Transformation AGO’ Project - Engineering approaches to protecting and preserving works of art

To achieve the desired functionality and aesthetics of the project, the client and architectural team proposed three main challenges:

  • Phased construction to allow continued regular service to galleries
  • Sophisticated mechanical systems to meet the specific needs of each gallery to be physically remote from the galleries for aesthetic reasons
  • Integration of new systems with existing base systems.

The building was divided into 70 zones, with each gallery space fitted with dedicated sensors controlling the individual equipment in remote rooms.

Frank Gehry’s design aesthetic provided some interesting challenges for the engineering design. Adrienne Cressman, HH Angus’ Lead Mechanical Engineer for the Transformation project and currently Director of our Project Management Office, recalled that “the attention to detail on the part of the Gehry team was unparalleled. No direction was passed on to the design team until it had been modelled in physical 3D by the architectural team. There was also a heightened level of coordination with curators at the Gallery for our scopes of service, regarding the specific requirements of individual exhibit areas.”

Among the requirements, the mechanical systems had to be virtually invisible, so that normal HVAC connections were not seen by visitors to the galleries. Executing this design feature was complicated by the fact that, to avoid the risk of water leakage, which would be a serious issue for the collection, all mechanical rooms were situated in no-impact locations well away from gallery spaces. For the same reason, no equipment was housed above ceilings in the galleries. According to Tom Halpenny, HH Angus’ Principal-in-Charge of the Transformation project and current Executive Vice President, the architectural vision for the project dictated a custom approach not only to our system designs but also for equipment specifications: “We made a number of changes to our specs in order to meet Frank Gehry’s design vision; for example, for the HVAC system, we replaced standard air supply and return vents with air slots that appear as a line at the top and bottom of the gallery walls, as these were considered to be a more aesthetic alternative. Even sections of the fire sprinkler system, wherever these could be seen by visitors, were fitted with stainless steel piping rather than the normal standard steel piping.”

A reduction in fresh air intake during off-peak visitor hours simplified the HVAC system control by reducing the influence of changes in outside air temperature and humidity. This approach helped considerably in providing more stable environmental conditions for the artworks. Tom Halpenny noted that, “the success of HH Angus’ design had two important results for the AGO: first, being able to guarantee the stability of the HVAC system allowed the gallery to attract touring exhibits of rare and fragile artwork and artifacts that have very specific and stable environmental conditions; second, the reliability of the HVAC system was recognized by the AGO’s insurance provider such that the gallery was able to secure better terms.”

HVAC systems were designed to be separate from gallery spaces and hidden from visitor view

Integrating the new mechanical systems with the existing building systems made an already complicated assignment even more complex technically. The form and arrangement of the new and renovated spaces resulted in an irregularly connected multi-level project. Interconnected atrium spaces required careful attention to detail to ensure that mechanical services were concealed and that service access routes were maintained. The prediction of temperature- and pressure-induced airflow patterns and the arrangements to segregate returns for balancing of the return air to the individual air handling units all required complex analysis.

The vertical transportation system included three passenger elevators, one high-capacity freight elevator, two material lifts, and two platform lifts to accommodate persons with physical disabilities. All elevators are of the “traction” type, with special design features to accommodate large groups and the travel distances required.

Separation of Cooling Towers and Sky Lights

We’re very proud of our association with the Art Gallery of Ontario and wish them many years of continued success!

For more information about the AGO’s 125th anniversary events, click below for their website: AGO125.

Energy

Mike Hassaballa, HH Angus’ Lead Consultant on Energy Infrastructure, summarizes the ‘need to know’ about Ontario’s current electricity market reform.

May 1, 2025 wasn’t just a date on IESO’s calendar. It marked the start of Ontario’s boldest electricity market reform since 2002, a full system reboot designed to fix inefficiencies that have quietly cost ratepayers hundreds of millions of dollars per year.

If you’re an energy engineer, building owner, electricity generator, distributed energy resources (DER) developer, or anyone whose business touches the grid, this is the moment to pay attention - the playing field is shifting under our feet.

Why Reform? Because the Old System Was Broken 

Since its inception, Ontario’s market has used a “two-schedule” system: one engine for dispatch, another for price. It’s like driving with one GPS for the map and another for fuel costs - they never aligned. That disconnect forced Ontario to pay ~$100 million annually in Congestion Management Settlement Credits (CMSC), a patch to make up for pricing that didn’t reflect grid realities. Even worse, these payments created gaming opportunities and buried congestion costs in opaque adjustments.

CHP - Combined Heat and Power
DAM - Day-Ahead Market
DER - Distributed Energy Resources
CMSC - Congestion Management Settlement Credits
HOEP - Hourly Ontario Energy Price
LMP - Locational Marginal Pricing
MRP - Market Renewal Program
IESO - Independent Energy System Operator
NYISO - New York Independent System Operator
OZP - Ontario Zonal Price
ERUC - Enhanced Real-Time Unit Commitment
PJM - Pennsylvania-New Jersey-Maryland Interconnection
PPAs - Power Purchase Agreements
PRL - Price Responsive Load
SSM - Single Schedule Market

What’s Changing?

The Market Renewal Program (MRP) replaces this duct-taped design with a cleaner, more efficient architecture, centered around:

  1. Single Schedule Market (SSM): No more separate pricing and dispatch. Now, dispatch decisions and locational prices are produced in a single algorithm that respects transmission limits. This ends routine CMSC payouts. Other side payment mechanisms will be retained but with significant modifications that address inefficiencies.
  2. Locational Marginal Pricing (LMP): Every node on the grid gets its own price. Electricity now costs more where the grid is tight and less where it’s plentiful. Think of it as price transparency with surgical precision.
  3. Day-Ahead Market (DAM): Ontario’s first real forward market. You can now buy/sell electricity a day in advance at locked-in prices. Generators gain certainty, flexible loads and DERs get new revenue tools.

Together, these form the backbone of a smarter, more transparent, and more disciplined electricity marketplace.

What Does This Mean for You? Let’s Break It Down.

Building Owners & Facility Operators

  1. Your energy strategy just got more powerful and more complex.
  2. With DAM and LMP, there are real savings in shifting load or using storage strategically.
  3. Demand Response can be now financially binding. Flexible HVAC, batteries, and thermal storage? Time to monetize!

New Risks, Bigger Rewards

If you’re a Class A customer or run a large energy portfolio, Ontario’s Market Renewal Program isn’t just noise in the background - it’s a new cost structure with real cashflow consequences. And if you know how to play it? You can win.

Goodbye Hourly Ontario Energy Price - Hello Locational Pricing

Your old HOEP-indexed strategies are now out of date. Under MRP:

  • You’ll settle energy at the Ontario Zonal Price (OZP) or possibly at your local LMP if you’re a dispatchable load.
  • If you’re in a high-demand, import-constrained zone (e.g., Greater Toronto Area or Ottawa), expect higher average prices.
  • If you’re in a surplus or export-constrained zone, you might benefit from lower wholesale prices. What this means: location-based cost volatility is now a real factor in your energy bill.

Day-Ahead Market = New Procurement Strategy

The new DAM is a two-settlement system. For savvy operators, this is a big win:

  • You can lock in prices a day in advance, smoothing your cost curves and budgeting with more confidence.
  • If you operate flexible loads, you can bid reductions into the DAM (via Price Responsive Load or demand response mechanisms) and get paid to not consume.
  • You can hedge LMP exposure more precisely using DAM data and new tools from energy retailers.

This isn’t theory. It’s a new market you can play in, every single day.

Time to Update
Your Playbook

This is not business as usual. You’ll need to:

  • Map your site’s LMP exposure.
  • Evaluate procurement strategy changes fixed vs index, DAM participation, retailer contracts.
  • Explore whether PRL registration makes sense (yes, it requires telemetry and some effort, but the economics may justify it).
  • Work with consultants and energy advisors who understand basis risk, nodal dynamics, and two-settlement optimization.

Risks If You Sit Still

  • Prices will spike in some areas. If you can’t respond or hedge, you’re exposed.
  • Retailers will pass through these costs, maybe with a delay, maybe with a markup.
  • This is no longer a passive procurement game.

Bottom line: You’ve been given tools, don’t leave them in the box.

Generators and
Developers

  1. Location matters more than ever. A generator in a congested zone could see higher returns. In surplus zones? Brace for negative prices.
  2. The end of CMSC means no more side-payments. You either make money or you don’t.
  3. DAM and Enhanced Real-Time Unit Commitment (ERUC) help you manage risk and fuel costs better, but you’ll need sharper bidding strategies.

The Market Just Got Smarter;
Your Project Model Should Too

For developers building the next wave of Ontario’s energy infrastructure solar, battery, CHP, or hybrid systems MRP isn’t background noise. It’s the new rulebook for how you’ll make money (or not) on future assets. This market reset directly affects siting decisions, financial models, and bankability.

Map

Location is No Longer Just About Interconnection

With Locational Marginal Pricing, every project will earn based on its nodal value. That means:

  • A battery in a congested urban zone could make 3–4X more on arbitrage than one in a low-price surplus zone.
  • A CHP unit near a load pocket might earn premium capacity value, while the same asset in a hydro-rich region faces rock-bottom LMPs.

If your site selection doesn’t model nodal prices, you’re already behind.

The Day-Ahead Market
= Revenue Certainty

Ontario finally has a real DAM. For developers, this changes the game:

  • You can lock in prices before real-time volatility hits.
  • You can offer flexible assets (e.g. batteries, demand response portfolios) into the DAM and earn guaranteed revenue.
  • You can better structure merchant revenue models without relying entirely on fixed contracts or PPAs.
  • For the first time, Ontario supports a merchant style pathway that looks more like NYISO or PJM.

LMP = Real Investment Signal

Persistent price separation across zones will now show:

  • Where to build new supply
  • Where storage earns best arbitrage margins
  • Where demand response or DER aggregation can fill a local gap

This means you don’t have to rely on opaque planning reports or uplift data anymore the market will show you where you’re needed. And for large-scale infrastructure (transmission-connected projects, utility-scale batteries), this clarity can make the difference between bankable and borderline.

The Complexity is Real

  • You’ll need to model nodal revenue, not just average price curves.
  • Intertie projects and exporters must now navigate DAM pricing at the border node which can vary substantially.
  • MRP introduces Market Power Mitigation, Make- Whole Payments, and two-settlement accounting. That’s a lot of financial logic to wrap into your pro forma.

Your financial model still assumes a fixed HOEP or simple real-time average? Time to hit delete.

Bottom line: Given the rules just changed, developers who understand nodal pricing, DAM strategy, and basis risk will capture upside. Those who don’t may build stranded assets.

DER Operators

  1. Batteries, solar, and CHP all gain better market access.
  2. Arbitrage opportunities multiply under LMP and DAM.
  3. Sophistication is required: small players may need aggregators or software to navigate the complexity.

If you own or operate DERs batteries, CHP, rooftop solar, or aggregated HVAC systems, the MRP is a paradigm shift. We’re moving from a world of flat prices and opaque value streams to a market where location and flexibility directly determine your revenue.

The Big Shift is From Uniform Pricing to Granular Value

Under the old HOEP system, a solar installation in a congested downtown node earned the same as one in a remote surplus region. That’s over.

Now with Locational Marginal Pricing, a battery in a Toronto high-rise during peak hours might see $200/ MWh prices, while a wind farm in the Northwest gets a negative LMP during surplus. If you’re not thinking in nodal terms, your revenue models will be wrong.

Day-Ahead Market = Better Tools, More Certainty

The DAM is a gift to flexible DERs:

  • You can now bid in expected production or curtailment in advance.
  • If you lock in a day-ahead price, you know your value before real-time volatility hits.
  • Aggregators can offer portfolios of DERs HVAC controls, batteries, or EV fleets into the DAM and get paid for reliability.

This turns DERs into serious market players. You’re not just shaving peaks - you’re offering dispatchable, schedulable services.

Price Volatility = Arbitrage Playground

MRP introduces real volatility in both time and space. For smart DER operators, that’s not a risk - it’s a playground:

  • Charge your battery when LMPs dip (e.g., midday solar oversupply).
  • Discharge when your node spikes (e.g., during constrained peaks in urban zones).
  • Bid demand response or CHP output into the DAM for guaranteed returns.

The IESO Is Watching

The IESO wants DERs in the market. Parallel initiatives (DER Market Integration, telemetry standards, aggregation rules) are evolving fast. But onboarding is still a barrier especially for small players.

If your business model relied on net-metering or fixed feed-in contracts, it’s time to model LMP exposure and DAM participation seriously.

Flexibility is now bankable. But a warning: this Isn’t Plug-and-Play anymore.

  • MRP is complex bidding, settlement, nodal forecasts, market power mitigation rules.
  • DERs will need forecasting, optimization, and compliance tools.
  • Many will rely on aggregators or retail partners to handle the backend.

And here’s the twist: inflexible DERs (e.g., standalone solar in surplus regions) could see low or negative prices during off-peak hours. Without storage or curtailment capability, they might be paid little or even be penalized.

Who Loses?

  • Passive participants - those used to fixed prices, predictable CMSC payouts, or set-it-and-forget-it operations will struggle.
  • Projects in surplus regions (especially non-dispatchable renewables) may see lower spot revenue.
  • Retailers and LDCs will need to rethink
    procurement and risk exposure.

Strategic Takeaway

This isn’t just an IT system upgrade, it’s a complete behavioral reset for Ontario’s electricity sector. The old rules rewarded predictability. The new rules reward flexibility, location, and foresight.

My Final Thoughts

MRP is not perfect. It’s complex, introduces volatility, and demands a steeper learning curve. But it is built on reasonable ideas, and it opens the door for smart energy users and innovators to thrive.

Whether you’re bidding into the DAM, optimizing building loads, or developing the next battery project, your next move should assume MRP is the new normal.

Please reach out if you have insights or would like to discuss facilities needs.

Mike Hassaballa

Mike Hassaballa, M.A.Sc., P.Eng

Lead Consultant, Energy Infrastructure, Senior Engineer

mike.hassaballa@hhangus.com

Cowichan

British Columbia's first fully electric healthcare facility has achieved Zero Carbon Building - Design Standard™ certification from the Canada Green Building Council. This is the first hospital in Canada to achieve this certification. The Standard guides the design of new buildings and major renovations of existing ones so they can achieve zero carbon operations. Environmentally sustainable  hospital design delivers benefits for healthcare operators, patients and healthcare staff, and the communities they serve.


The Zero Carbon Building (ZCB) - Design Standard™ defines low-carbon design and operational performance for buildings. According to
CaGBC’s website, “The Zero Carbon Building – Design Standard™ guides the design of new buildings and major renovations of existing ones so they can achieve zero carbon operations. The Standard is comprehensive and evaluates the anticipated carbon emissions from building operations like heating and cooling. Project teams must carefully consider the embodied carbon of construction materials, refrigerants used in HVAC equipment, and building airtightness. Project teams must also evaluate strategies to minimize electrical grid impacts."

The Project

HH Angus is providing mechanical and electrical consulting engineering to the Cowichan District Hospital Replacement Project (CDHRP) on Vancouver Island, as part of the design team under the Nuts'a'maat Alliance (Island Health, EllisDon Corporation, Parkin Architects, BC Infrastructure Benefits and Infrastructure BC). The project is being developed for Island Health to replace the existing facility in North Cowichan, BC. When it opens in 2027, the new hospital will be three times larger than the existing facility at 57,448 m2 (607,601 ft2), and will increase capacity from 148 beds to 204 beds. The hospital will expand capacity for inpatient and ambulatory care, with seven operating rooms, additional procedure rooms, an expanded birthing unit, pediatric spaces, outpatient clinic services, expanded diagnostic imaging, an expanded emergency department, and a rooftop helipad. Mental health services will be updated with a 20-bed inpatient psychiatry unit and a four-bed psychiatric intensive care unit.

Sustainability Features

Sustainability has been at the core of the decision-making process for this project, with a focus on carbon reduction. Its ZCB – Design™ certification reflects achieving a 38% embodied carbon reduction from baseline and, as the first all-electric healthcare facility in British Columbia, the CDHRP’s design has an operational energy performance that significantly surpasses its target.

The design strategies focused on reducing the project's embodied carbon emissions, maximizing energy efficiency, electrifying the mechanical systems, using new-generation low GWP refrigerants, and designing an optimized PV array.

In its press release announcing the ZCB – Design™ certification, Island Health provided the following highlights of the hospital features supporting patient and staff wellbeing and environmental benefits:

  • Fully electric operation: The first all-electric hospital in B.C., it eliminates reliance on fossil fuels.
  • Highly energy efficient design: A high-performance building envelope minimizes heat loss, reducing overall energy demand by 30% compared to the current hospital.
  • Better air quality: Advanced ventilation and filtration systems support cleaner air, benefiting people with respiratory conditions such as asthma and COPD and providing greater operational resilience during wildfire smoke events.
  • On-site renewable energy generation: Rooftop solar panels will generate 2.5 percent of the hospital’s annual energy needs, reducing operating costs and reliance on external energy sources.
  • Water conservation strategies: 60% more water-efficient than the current hospital
  • Sustainable materials: Use of low-carbon concrete, mass timber, rebar and insulation to minimize embodied carbon in construction.
  • LED lighting which uses 75 percent less energy than incandescent bulbs; and
  • Low global warming potential refrigerants to minimize carbon emissions in mechanical equipment. 

The EllisDon and Parkin-led (ED+P) design team, in association with HH Angus, ZGF Architects, Bush Bohlman and Partners, and RDH, understood the significance of the project goals and the importance of targeting the Zero Carbon Building – Design™ certification. Their leadership, efforts and collaboration allowed the team to meet and exceed the project requirements, together with the leadership of Island Health. The project team members have been consistently committed to following through on the design approach and to finding all opportunities to improve.

To view a short video about the project’s construction progress, click here.
To read more about our work on the Cowichan District Hospital Replacement project, click here.

Image/s courtesy of EllisDon Construction & Parkin Architects

ROI IOT

Investing in IoT sensor networks for workplaces involves high upfront and ongoing costs, prompting many organizations to begin with pilot projects before scaling up.

At a recent event hosted by Nexus Labs, Paul Vandenberk of HH Angus’ Digital Services team presented a case study on our pilot occupancy sensor project with Manulife, a large financial services company. Paul shared how the successful project provided both valuable metrics and real-world savings. His presentation also highlighted the importance of including in ROI analyses the many qualitative benefits that are often missed in these assessments.

Manulife tested IoT sensors in two office buildings, leading to significant insights. The key takeaways from the pilot program included identifying underused floors, which allowed them to re-allocate space to reflect actual occupancy and freed up a significant area that was released for subletting – an effective savings of ~$3 million annually.

The occupancy data also helped Manulife make a decision on whether to expand the service hours of its staff cafeteria. The real-time data clearly indicated that the proposed expansion of services would not be cost-effective based on how many employees were actually on site for the proposed added hours, saving Manulife significant operational and supply costs had they gone ahead without the data.  Additional benefits included the ability to measure the effectiveness of the firm’s return-to-office policies with precise data, and using sensor data for safety (e.g., confirming full evacuation during a fire drill).  The success of the pilot has led to broader deployment.

The Nexus Labs event also examined Kilroy Realty, a large Real Estate Investment Trust, that has fully integrated IoT sensors across a 17 million ft2 portfolio, mining sensor data for energy compliance, security, cleaning, leasing, and more. Kilroy invested in robust network infrastructure to support long-term scalability and reliability, and uses a cross-departmental approach to maximize ROI and shared utility from each sensor.

Both companies show that the biggest returns come from treating IoT as core infrastructure and leveraging it across multiple teams and use cases. To read the full Nexus Labs article, click on the link below:
ROI of IoT: The Best Returns Come from Diving In, Not Dipping Your Toe in the Water | Nexus Labs

HH Angus’ Digital Services team leverages data and software to help our clients solve challenges relating to the design, construction, operation and occupancy of their building assets in a vendor-agnostic approach. The team is comprised of mechanical and electrical engineers, software developers, data scientists, Amazon Web Services (AWS) certified specialists, BIM technologists, and project and product managers who specialize in a range of technology for the built environment. Our specialists work with clients’ existing and new technology, providing solutions  that encompass smart buildings technologies to support digital twins, machine learning, 3D reality capture/augmented reality (AR)/virtual reality (VR), cloud-based dashboards/visualizations, and more.

The Digital Services team recently launched Angus Remote Management System (ARMS) – a customizable digital platform that gathers data from existing building systems or smart buildings technologies IoT sensors, delivering real-time insights and analytics flexible. Our software visualizes the data through a cloud-based dashboard allowing the client to have a complete picture of their space(s) and building(s) and the key decision points they need to focus on. ARMS, at its core, is flexible software that gathers data from sensor-rich environments. It provides a single-pane-of-glass access to data sets such as room occupancy, space utilization, building automation system (BAS) data, security, occupant comfort factors (temperature, humidity, indoor air quality, etc.), and more.

If you’d like to find out how IoT sensors and other smart building technologies can help optimize your building assets, contact:

Akira Jones
Director, Digital Services

Paul Vandenberk
Senior Project Manager, Digital Services

Best Managed Header

We are honoured that
HH Angus and Associates is again included among Canada's Best Managed Companies. 

A Gold Level member, this is our seventh consecutive year of being recognized among Canada’s Best for our consistent performance and long-term vision.

Canada’s Best Managed Companies is one of the country’s leading business awards programs recognizing innovative and world‑class businesses. Celebrating over 30 years, the CBMC program awards excellence in overall business performance and growth of best in-class, Canadian-owned companies with revenues of $50 million or more.

“The 2025 Best Managed winners exemplify the highest Canadian business standards of innovation, adaptability, and bold leadership,” said Derrick Dempster, Partner, Deloitte Private and Co-Leader, Canada’s Best Managed Companies program. “Their relentless ambition, determined focus, and strategic agility have led them to remain competitive on the world stage, creating sustainable economic growth in an evolving global market.”

To attain the designation, companies are evaluated on their leadership in strategy, culture and commitment, capabilities and innovation, governance and financial performance. Paul Keenan, President of HH Angus, commented on today’s award: “Being named a Best Managed company acknowledges the value of our careful management of our day-to-day operations, our thorough planning for both the short and long-term future of the firm, and our success in identifying growth opportunities, whether those are in sectors, services or geography. We’re very honoured and excited to once again be recognized by the Best Managed program.”

HH Angus also enjoys a strong company culture that values and celebrates innovation, technical excellence, and dedication to client service. Our staff of approximately 450 professionals, across offices in Vancouver, Calgary, Toronto, Ottawa and Montreal, is laser-focused on delivering a broad range of successful projects in Canada and internationally to help our clients realize their goals. They share the firm’s expanding focus on decarbonizing the built environment to benefit the environment and provide a wide range of services to support the development of smart and sustainable cities. Earning the Best Managed Companies Award year after year is a reflection of their commitment and loyalty, and the vital role they play in HH Angus’ success. 

We also recognize that the Best Managed honour would not be possible without the trust and loyalty of our valued clients – we appreciate the important role they play in HH Angus’ success.

2025 marks HH Angus’ 106th year in business. For the firm to be thriving and deserving of this award after more than a century in business speaks to a tradition of resourceful, resilient and innovative leadership. Building on more than a century of success, we continue to strengthen the firm to meet the challenges and opportunities of tomorrow.