Comverge, Inc. (Nasdaq: COMV), has entered into a demand reduction agreement with Nevada Power Company to supply a new Virtual Peaking Capacity (VPC) program of up to 126 megawatts of clean electric capacity.
Comverge will also operate and maintain Nevada Power’s existing system estimated to be between 15-19 megawatts consisting of both thermostats and digital control units. Comverge expects to recognize between $25 and $30 million of revenue during 2007 – 2009. Under the VPC program, which will be marketed to Nevada Power’s residential and small commercial customers, Comverge will build, operate and maintain a demand responsive load management system which will encourage energy efficiency and help assure energy reliability during times of peak demand.
This outsourced, pay-for- performance, program will allow Nevada Power to call upon needed capacity that can be dispatched within 10 minutes throughout the designated service territory. The program is designed to make use of the region’s energy resources more efficiently, utilizing benefits not possible with traditional generation, such as avoiding line losses and relieving transmission constrained areas in an environmentally responsible way.
Robert Chiste, Comverge, Inc. Chairman, CEO and President stated “With this latest and largest VPC agreement, Comverge has over 495 megawatts of clean capacity under long term contract. This also represents our first ‘brownfield’ opportunity for Comverge to take-over an existing system and manage it on behalf of the utility customer.”
Comverge provides 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.
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