Comverge Strongly Positioned to Capitalize on Federal Energy Regulatory
New Rule Will Lower Consumer Electricity Costs in Organized Wholesale Energy Markets
NORCROSS, GA., March 16, 2011 – Comverge, Inc. (Nasdaq: COMV), the leading provider of Intelligent Energy Management solutions for Residential and Commercial + Industrial customers, today announced its support for a new Federal Energy Regulatory Commission (FERC) order that has the potential to significantly lower electricity bills. The new rule levels the playing field in the organized electricity markets between energy conservation and power generation also setting the stage for significant environmental benefits that would result from reduced power plant operations.
“The new FERC rule is recognition of the critical role that demand response plays in our nation’s energy mix,” said R. Blake Young, President and CEO, Comverge. “By leveling the playing field and creating price parity between demand response resources and electricity generation, the FERC has sent a clear message on the high value of energy efficiency programs and technologies. Additionally, our incumbent position and established history of successfully delivering these complex solutions to utility and commercial and industrial customers uniquely positions Comverge to deliver the consumer benefit this expanded rule intends.”
The FERC order removes barriers to the participation by requiring organized wholesale energy market operators to pay demand response resources the market price for energy, known as the locational marginal price (LMP). The order carefully balanced consumer needs by requiring this payment system when a net benefits test shows that the consumers will save money from broadly lower prices that result from dispatching demand response instead of higher cost generation resources.
Blake Young added, “The FERC made a strong statement today, ensuring customers’ benefits in organized markets is paramount. Demand response can now formally take its place as an equally valuable resource for meeting consumer needs across our electricity grid. This order is evidence of the maturation of Demand Response as a proven, low cost and reliable alternative to business as usual.”
Organized wholesale market operators will be required to make compliance filings by July 22, 2011, that include conforming tariff provisions and identify price thresholds to estimate where customer net benefits would occur. By September 21, 2012, each market operator must undertake a study examining the requirements for-- and effects of --directly determining the cost-effective dispatch of demand response resources in both the day-ahead and real-time energy markets, and to file the results of the study with FERC.
With more than 500 utility and 2,100 commercial customers, as well as five million residential deployments, 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 Comverge’s position to capitalize on this ruling, the opportunity to benefit from this rule change, 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 Annual Report on Form 10-K 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.
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