Comverge Announces Development of Nation's First Residential "Virtual Peaking Capacity™" Program $40 Million Long-term Contract Signed with PacifiCorp
FLORHAM PARK, NJ, June 12, 2003-Comverge, Inc. announced today that it has signed a long-term Virtual Peaking Capacity™ contract to provide significant peak load reduction to PacifiCorp, a subsidiary of ScottishPower (NYSE: SPI). Comverge, Inc. is a leading energy intelligence company, which recently announced a major funding by a broad investor group including: Data Systems & Software, Inc. (NASDAQ: DSSI), Nth Power, Easton Hunt Capital Partners, L.P., E.ON Venture Partners GmbH (NYSE: EON), EnerTech Capital, and Shell Internet Ventures, an affiliate of the Royal Dutch/Shell Group of Companies (NYSE: RD).
In a first-of-its-kind contract, recently approved by the Public Service Commission of Utah, Comverge will market, own, and maintain a residential load management program, designed to provide significant peak period relief, in PacifiCorp's Utah Power service area. The Virtual Peaking Capacity™ demand side program will operate under the "Cool Keeper" brand name and initially target Utah Power's service area along the Wasatch Front - an 80-mile stretch of territory in Utah, from Provo north through Salt Lake City, to Ogden. The areas to be targeted initially are regions where the peak demand for electricity strains the limits of the region's existing transmission and distribution capabilities.
"The recent trend of rapid conversion from evaporative coolers to central electric air conditioning in our service territory has led us to consider innovative ways to offset the increasing demand for electric delivery capacity," stated Jeff Bumgarner, PacifiCorp Director, Demand Side Management. "Comverge provided us with a comprehensive turnkey solution to help us optimize our long-term capacity requirements. We especially like the fact that the Cool Keeper program is an environmentally friendly demand side solution that complements our overall approach to inform customers about energy efficient cooling systems. We look forward to a mutually beneficial long-term partnership with Comverge."
Joseph Esteves, Executive Vice President of Comverge, stated, "We are truly excited to be partnering with PacifiCorp which has again demonstrated its leadership ability to meet a growing demand for electricity, while protecting the environment. We are also pleased that in establishing this long-term relationship we have brought outsourcing to a new level in the utility industry and have confirmed the attractiveness of our business offering with such a market leader."
Robert M. Chiste, Chief Executive Officer of Comverge, added, "Comverge's Virtual Peaking Capacity™ solution is a unique business innovation that will accelerate the growth of our core load management business. This outsourcing concept allows our utility customers to focus on what they do best, which is to provide reliable energy, while Comverge's expertise stays focused on peak demand management. The "Cool Keeper" program will highlight our customer intimacy initiatives and illustrate that Comverge is The Power in Power Technology™. This long-term agreement, which will generate in excess of $40 million in revenues over the life of the contract, will allow us to build an enduring relationship with PacifiCorp, as we have with other major utilities."
About Comverge, Inc.
Comverge, Inc., The Power in Power Technology™ has more than 500 energy supplier clients worldwide. Comverge has offices, research facilities, representatives and agents located in Atlanta, Georgia; Florham Park, New Jersey; Newark, California; Pensacola, Florida; and Tel Aviv, Israel. The Company's PowerCAMP™ Group and new 6DiNET Group provide End-to-End Energy Intelligence™ software solutions. Comverge's Technologies Group provides integrated, full-spectrum solutions for direct or voluntary load control programs, remote meter reading, price-responsive programs, time-of-use billing, distributed generation monitoring, theft/outage detection and more. Comverge's Enterprise Group provides pioneering turnkey business solutions including owned and operated systems, Virtual Peaking Capacity™ "negawatt" contracts, and joint ventures. For more information visit: www.comverge.com.
Headquartered in Portland, Oregon, PacifiCorp operates as Pacific Power in Oregon, Wyoming, Washington and California; and as Utah Power in Utah and Idaho. In 1999, PacifiCorp merged with UK-based ScottishPower. Today, the company is one of the West's largest electric utilities. It serves 1.5 million residential and commercial customers in six western states. PacifiCorp has 8,200 megawatts (mw) of generation capacity, 15,000 miles of transmission lines, and 54,000 miles of distribution lines. More information can be found at http://www.pacificorp.com.