BOSTON, May 28, 2013 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of energy intelligence software and related solutions, today announced that it has cleared approximately $140 million of contracted revenue in the PJM capacity market for the 2016/2017 delivery year based on results of PJM's Reliability Pricing Model Base Residual Auction announced on May 24, 2013. EnerNOC increased its leading PJM demand response market share in the auction to over 35 percent. Additionally,
EnerNOC announced that it has over $1.6 billion in total contracted revenue as of May 28, 2013.
"Due primarily to a record amount of new imports that cleared, capacity prices will be significantly lower in the 2016/2017 delivery year than they will be between now and then. Although we are obviously disappointed with the clearing prices in this auction, it is important to put Friday's outcome into a broader perspective. Our results are reflective of our ongoing strategy to strike the right balance between growth and profitability and to not simply be a price-taker where we would be managing demand response resources at a loss," said Tim Healy, Chairman and CEO of EnerNOC.
"We cleared 4,400 megawatts of capacity, slightly less than we cleared in the BRA for 2015/2016. Interestingly, over two gigawatts of demand-side resources that were offered into Friday's auction did not clear due to price, which suggests that there is still opportunity for continued growth in PJM when the market warrants it. Considering our large installed customer base, robust product suite, and an expanding geographic footprint, we believe that we have ample room for profitable growth across the markets in which EnerNOC operates, and we remain optimistic about our overall growth trajectory," continued Healy.
The Company also announced that it secured energy efficiency payments in PJM's capacity market for the first time, reflective of the growing traction of its EfficiencySMART product suite.
"We continue to focus on diversifying our revenue streams across products and across geographies. With a clear line of sight into over $1.6 billion in total contracted revenue, approximately 90% of which we expect to earn by May 31, 2017, and continued interest from utilities and other enterprise customers all over the world, EnerNOC is well positioned for continued success," said Neil Moses, Chief Financial Officer of EnerNOC.
Assumptions Regarding Total Contracted Revenue:
Total contracted revenue estimated from EnerNOC's executed contractual arrangements and accepted bids in open market bidding programs have been prepared by management and are based upon contractual terms, open market bidding program rules and a number of assumptions, including:
— EnerNOC's ability to deliver the energy efficiency savings that it has committed to provide;
— EnerNOC's ability to provide to its utility and grid operator customers the capacity that it has committed to provide under executed contractual arrangements and pursuant to accepted bids in open market bidding programs. The Company's expectations are based on its experience to date in building out its existing load management systems;
— EnerNOC's contractual arrangements with its utility and grid operator and commercial, institutional, and industrial ("C&I") customers for energy efficiency and demand response services not being terminated, modified or delayed or becoming subject to governmental regulation that could materially and adversely affect EnerNOC's interests;
— the rules and assumed pricing of the various open market bidding programs in which EnerNOC participates remaining unchanged in all material respects;
— the rate of termination of EnerNOC's C&I customers under its long-term contracts remaining consistent with EnerNOC's historical average;
— the electricity consumption of EnerNOC's C&I customers remaining consistent with historical use throughout the term of its contracts with such customers; and
— EnerNOC's ability to obtain regulatory approval for its long-term contracts with certain utility and grid operator customers where such approval is required.
Any differences among these assumptions, other factors, and EnerNOC's actual experiences may result in actual revenue earned in future periods differing from management's current estimate of contracted revenue to be earned. In management's view, such information was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and, to the best of management's knowledge and belief, presents the assumptions and considerations on which EnerNOC bases its belief that it can earn such contracted revenue.
EnerNOC is a leading provider of energy intelligence software. EnerNOC unlocks the full value of energy management for utility and commercial, institutional, and industrial (C&I) customers by delivering a comprehensive suite of demand-side management services that reduce real-time demand for electricity, increase energy efficiency, improve energy supply transparency in competitive markets, and mitigate emissions. EnerNOC's Utility Solutions™ offerings, which include both implementation and consulting services, are helping hundreds of utilities and grid operators worldwide meet their demand-side management objectives. EnerNOC serves thousands of commercial,
institutional, and industrial customers worldwide through a suite of energy management applications including: DemandSMART™, comprehensive demand response; EfficiencySMART™, continuous energy savings; and SupplySMART™, energy price and risk management. EnerNOC's Network Operations Center (NOC) offers 24x7x365 customer support. For more information, visit www.enernoc.com.
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Safe Harbor Statement
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to EnerNOC's future potential revenue and the future continued growth, success and profitability of EnerNOC's energy intelligence software and related solutions, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or
similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to under the section "Risk Factors" in EnerNOC's most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is
providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Source: EnerNOC, Inc.
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