PowerSecure International, Inc. (Nasdaq:POWR) today announced its largest ever recurring revenue contract with a utility partner to provide customers with standby power and the utility with access to reliable distributed generation assets.
PowerSecure says the new $16 million, seven-year contract ($2.3 million per year) is a milestone in the company’s efforts to bring innovative energy solutions to the growing market for distributed power generation.
According to a release, the contract increases PowerSecure’s recurring revenue base by an additional 50% (on top of a 50% increase from new recurring revenue contracts announced in early November). The Company expects the new distributed generation assets to be in place by mid-2008.
PowerSecure is involved in distributed generation, which enables utilities to avoid new investments in utility infrastructure for transmitting and distributing power and allows the generation to be located at the customer’s site, thus avoiding energy losses associated with moving electricity over long distances. The net impact is an environmentally friendly and energy efficient solution.
"We continue to be excited by the interest our new distributed generation solutions are receiving in the marketplace," said Sidney Hinton, CEO of PowerSecure. "We are creating three-way partnerships with utilities and customers to deliver energy with a strong ROI, maximum dependability, and the most sophisticated and capable monitoring systems available. These new recurring revenue contracts provide innovative ways for our customers to manage their energy needs, and enable us to complement our project-based revenue business with growing recurring revenue streams."
PowerSecure develops utility partnerships that provide utilities with dedicated electric power generation assets, and customers with dependable standby power for the energy management and conservation industry.
PowerSecure contracts enable utility partners and customers to avoid the up-front capital expense of installing generation assets, while providing PowerSecure with additional recurring revenue business.
About PowerSecure International, Inc.
PowerSecure International, Inc. is a provider of energy management and conservation solutions to utilities and their commercial, institutional, and industrial customers. PowerSecure partners with utilities to design and install Interactive Distributed Generation® systems and services that manage load curtailment and peak demand conditions, enhance system reliability and provide customers with emergency power during outages. PowerSecure also provides utilities with regulatory consulting, energy system engineering and construction, and energy conservation services.
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