Comverge Secures Future Potential Revenue in PJM’s 2015/2016 RPM Auction
Results of PJM Auction Build on Comverge’s Strong Portfolio Diversity
Norcross, GA, May 24, 2012
- Comverge, Inc. (Nasdaq: COMV), the leading provider of Intelligent Energy Management (IEM) solutions for Residential and Commercial & Industrial (C&I) customers, today announced it has secured a strong position in the 2015/2016 Reliability Pricing Model Base Residual Auction. As a result of the auction success, Comverge’s future potential revenue in the PJM capacity program increased by 140% compared to its 2011 results.
The award builds on Comverge’s continuing strong growth in C&I demand response markets. Comverge experienced 75 percent year-over-year growth for first quarter 2012 as strong growth in all customer market verticals continues to accelerate. Comverge added more than 800 new megawatts (MW) under management in 2011 and reported its strongest ever operational and financial performance.
“The results of the PJM 2015/2016 auction build on the very strong growth in our commercial demand response business,” said R. Blake Young, Comverge President and CEO. “Results were consistent with our overall balanced market approach with an emphasis on growing our RTO position as prices continue to strengthen and the market opportunity continues to be significant. We believe that pricing for both the limited and extended summer products will enable demand response ample opportunity in continuing to provide cost effective and reliable capacity to PJM when it is most needed.”
Comverge services the C&I market by working with utilities and directly with commercial and industrial partners in open markets such as PJM, ISO-New York, ISO-New England, and ERCOT. Comverge currently manages 3,416 MWs in the C&I market.
PJM Interconnection is a regional transmission organization that manages the electric transmission system to ensure reliability and operates wholesale electricity markets in all or parts of 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 60 million people in the PJM region. PJM awarded a total of 14,833 MWs to demand response resources in the 2015/2016 Base Residual Auction, an increase of 5% from the previous 2014/2015 Base Residual Auction. Comverge market share is approximately 7% of the total awarded Demand Response resources in the 2015/2016 auction.
With more than 500 utility and 2,100 commercial customers, as well as five million deployed residential devices, 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 revenue expected from PJM, projected contracted revenues, 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 form 10-Q filed on May 10, 2012. 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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