Comverge Strengthens Commercial & Industrial Demand Response Portfolio
- Announces Regulatory Approval of Industry's Largest Commercial & Industrial VPC Contract
- Awarded 680 Megawatts in PJM 2012/2013 Capacity Market Auction
EAST HANOVER, N.J., June 3, 2009 Comverge, Inc. (Nasdaq: COMV), a leading provider of comprehensive smart grid, demand management, and energy efficiency solutions, today announced two transactions that significantly expand its Commercial & Industrial (C&I) demand response portfolio.
First, a 15-year, 125 megawatt contract with Arizona Public Service (APS), announced in September 2008, has received regulatory approval, marking the largest commercial and industrial (C&I) Virtual Peaking Capacity(R)(VPC) demand response contract in the industry to date. Through Comverge's VPC services, this program will enable APS to help commercial and industrial customers reduce the amount of electricity that is required at peak demand times. Services are expected to begin in 2010.
"The approval of this contract marks the beginning of our largest ever C&I VPC contract and exemplifies Arizona Public Service's commitment to addressing their energy needs with environmentally responsible solutions," said Frank Magnotti, president of Comverge's Clean Energy Solutions Group. "This contract represents a milestone not only for Comverge's C&I portfolio, which has increased by more than 1,500 megawatts in the last two years, but for the industry at large suggesting the increasing importance demand response will play in our energy management efforts for years to come. We continue to execute our strategy to expand our reach geographically and bring our solutions to the residential and C&I markets."
Second, Comverge secured more than 680 megawatts of demand response capacity in the PJM Interconnection (PJM) market as a result of the 2012/13 Reliability Pricing Model Base Residual Auction.
Comverge Chairman, President and CEO, Robert M. Chiste, stated, "The approval of this landmark contract combined with our latest award in the PJM 2012/2013 auction demonstrates Comverge's growing presence in the C&I demand response market and further establishes our position as the industry's most comprehensive demand response and smart grid solutions provider, serving the residential, commercial, industrial and institutional markets. We expect to generate approximately $145 million of estimated future revenues from the APS contract and performance resulting from the 2012 PJM auction."
About Comverge
Comverge, with over 3000 megawatts of clean energy capacity under management, is a leading provider of clean energy solutions that improve grid reliability and supply electric capacity on a more cost-effective basis than conventional alternatives by reducing base load and peak load energy consumption. For more information, visit www.comverge.com. Virtual Peaking Capacity is a registered trademark of Comverge, Inc.
For Comverge Investors
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 future potential contracted revenues, payments from long-term contracts, anticipated megawatts achieved, 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, grid operator rule changes, economic and competitive factors, our key strategic relationships, and other risks more fully described in our most recently filed Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Comverge assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
For Additional Information
Kristin Mastrandrea
Communications Manager
Comverge, Inc.
973-947-6169
kmastrandrea@comverge.com
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