PowerSecure International, Inc. (Nasdaq: POWR) today announced a major recurring revenue contract with an investor-owned utility for a new conservation and energy efficiency program. The company estimates the seven-year contract, once fully implemented, has the potential to generate $8-10 million in annual recurring revenue.
According to PowerSecure, the contract utilizes an innovative financial model designed to deliver strong ROIs and drive energy efficiencies for the utility and its customers. Under the terms of the agreement, PowerSecure will market distributed generation solutions to commercial and industrial customers in conjunction with the utility’s new energy efficiency program. PowerSecure receives recurring revenues from the utility, after contracting with the utility’s customers to provide them with reliable, dedicated distributed generation systems.
Sidney Hinton, CEO of PowerSecure, said, "This represents our second major recurring revenue announcement in two weeks, and demonstrates the positive response we are receiving in the marketplace for our Distributed Generation solutions. Our new recurring revenue contracts provide innovative ways for our customers to manage their energy needs, and enable us to complement our project-based business with growing recurring revenue streams. Our goal is to deliver distributed generation systems that provide a strong value proposition for utilities and their customers. Importantly, the assets we put in place are dedicated to the utilities and their customers, providing maximum dependability, and containing the most sophisticated and capable monitoring systems available."
About PowerSecure
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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