EAST HANOVER, N.J., May 9 /PRNewswire-FirstCall/ -- Comverge, Inc. ("Comverge"), a leading provider of clean energy solutions through demand response, announced today that the California Public Utilities Commission has approved its Demand Response Purchase Agreement with Pacific Gas and Electric Company (PG&E). Under the agreement, a Virtual Peaking Capacity (VPC) program will provide PG&E with up to 50 megawatts of electricity capacity in the first two years. Comverge expects to recognize between $20 and $24 million of revenue during the five year term of the program.
Comverge's VPC program will allow PG&E to call upon needed capacity that can be dispatched within minutes throughout the designated service territory for small, medium and large commercial and industrial customers. The voluntary program is designed to utilize the region's energy resources more efficiently, capturing benefits not possible with traditional generation, such as avoiding line losses and relieving transmission constrained areas in an environmentally friendly way.
Robert M. Chiste, Comverge's Chairman, President and CEO said, "In 2003, Comverge signed the first pay-for-performance demand response capacity contract in the industry. We call it Virtual Peaking Capacity, and with it, we ushered in a new way of looking at providing clean capacity as an alternative energy resource for electricity providers. This agreement with PG&E represents our seventh fully-outsourced VPC program which is our second in California and largest C&I program to date. These programs are a continuing validation and acceptance of our philosophy that electricity providers should only have to pay for reliable and verifiable capacity. We are proud to say that through the trust and confidence shown us by our utility customers, independent system operators and state utility commissions, Comverge now has 500 megawatts under long-term contract."
About Comverge:
Comverge is a leading provider of clean energy solutions that enhance grid reliability and enable utilities to increase available electric capacity during periods of peak energy demand on a more cost-effective basis than conventional alternatives. For more information, visit http://www.comverge.com/. "Virtual Peaking Capacity" and "VPC" are trademarks of Comverge, Inc.
This press release contains certain statements that may include "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included herein are "forward- looking statements." Included among "forward-looking statements" are, among other things, statements regarding the business strategy, plans and objectives of Comverge including expected electricity capacity and revenues. Although Comverge believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. The actual results for Comverge could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including market conditions and other risks typically associated with securities offerings. In particular, the forward-looking statements of Comverge are subject to the risks and uncertainties discussed in Comverge's registration statement on Form S-1, as amended, that is filed with the Securities and Exchange Commission. You should not place undue reliance on these forward- looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, Comverge does not assume a duty to update these forward-looking statements.
Contact:
Chris Neff
Director of Marketing
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