Comverge Secures $74 Million of Expected Future Contracted Revenue in PJM 2013/2014 Auction
Award of Approximately 1,000 Megawatts, an Increase of 46 Percent from
Previous Year
Further Proof of Comverge's Growing Footprint in the Commercial and
Industrial Demand Response Market
NORCROSS, GA., May 17, 2010 - Comverge, Inc. (Nasdaq:COMV), a leading provider of smart grid, demand management and energy efficiency solutions, today announced it has secured more than $74 million in future contracted revenues in the PJM Interconnection (PJM) market as a result of the 2013/2014 Reliability Pricing Model Base Residual Auction. The award extends Comverge's recent growth in the commercial and industrial (C+I) demand response market, following an increase of more than 275 megawatts (MW) under management in the first quarter of 2010. Comverge had committed cash collateral of $18 million in advance of the PJM 2013/2014 auction.
"These auction results are proof of Comverge's growing footprint in the commercial and industrial demand response market," said R. Blake Young, Comverge President and CEO. "Our ability to serve both the commercial and residential markets with proven and comprehensive demand response and intelligent energy management solutions, combined with a strong balance sheet, puts us in position to capitalize on the growing energy management market in ways that no other company can."
PJM Interconnection is a regional transmission organization that manages the electric transmission system to ensure reliability and operates wholesale electricity markets in 13 states and the District of Columbia. The Reliability Pricing Model auction ensures that electricity providers have enough capacity--power to be drawn from when needed--to reliably serve the 51 million people in the PJM region. PJM awarded a total of 9,282 MW to demand response resources in the 2013/2014 Base Residual Auction, an increase of 32% from the previous year. Comverge increased its market share to more than 10% of the total awarded Demand Response resources in the 2013/2014 auction.
Comverge services the C+I market by working with utilities and directly with commercial and industrial partners in open markets. Comverge currently manages over 2,100 MW in the C+I market and current utility, commercial and industrial partners include Arizona Public Service Company, Limited Brands, Armstrong World Industries, University of Maryland and the Commonwealth of Pennsylvania.
About Comverge
With more than 500 utility and 2,100 commercial customers, as well as five million residential installations, Comverge brings unparalleled industry knowledge and experience to offer the most reliable, easy-to-use, and cost-effective intelligent energy management programs. We deliver the insight and control that enables energy providers and consumers to optimize their power usage through the industry's only proven, comprehensive set of technology, services and information management solutions. For more information, visit www.comverge.com.
Caution Regarding Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release are not and do not constitute historical facts, do not constitute guarantees of future performance and are based on numerous assumptions which, while believed to be reasonable, may not prove to be accurate. These forward looking statements include projected revenues, projected megawatts, projected regulatory changes or approvals, the amount of revenue and megawatts that will be generated by open market programs and certain assumptions upon which such forward-looking statements are based. The forward-looking statements in this release do not constitute guarantees of future performance and involve a number of factors that could cause actual results to differ materially, including risks associated with Comverge's business involving our products, the development and distribution of our products and related services, regulatory changes or grid operator rule changes, regulatory approval of our contracts, economic and competitive factors, our key strategic relationships, and other risks more fully described in our most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed today. Comverge assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
Contact
Comverge, Inc.
Media Relations
Kristin Mastrandrea, Communications Manager
973-434-7157
