EnerNOC, Inc., a leading provider of energy management applications for the smart grid, today announced that as of June 1, 2012 it has surpassed $1.6 billion in contracted revenues, an increase of 23% year-over-year, highlighting the strong demand for EnerNOC’s industry-leading products and services worldwide.
"EnerNOC’s vision is to change the way the world uses energy. Our growing base of contracted revenues, which has more than tripled since we first reported this metric in 2008, is an exciting indication of the early progress we’re making," said Tim Healy, Chairman and CEO of EnerNOC.
Contracted revenues represent EnerNOC’s estimate of total payments that it currently expects to earn in connection with providing demand response and energy efficiency services under executed contractual arrangements and pursuant to open market bidding programs.
“When we first became an EnerNOC customer in 2006, our relationship was focused exclusively on demand response, but today, they are a true partner in many different types of efficiency projects and efforts,” said Len Pettis, Chief of Plant, Energy & Utilities at California State University Office of the Chancellor, California State University.
As of the date of this press release, EnerNOC expects approximately 90% of this contracted revenue to be earned by May 31, 2016.
Assumptions Regarding Contracted Revenues:
Contracted revenues 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. Less than 3% of the contracted revenue referenced in this release is subject to such regulatory approval as of the date of this release.
Any differences among these assumptions, other factors, and EnerNOC’s actual experiences may result in actual revenues earned in future periods differing from management’s current estimate of contracted revenues 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 revenues.
EnerNOC (enernoc.com) unlocks the full value of energy management for our utility and commercial, institutional, and industrial (C&I) customers by reducing real-time demand for electricity, increasing energy efficiency, improving energy supply transparency in competitive markets, and mitigating emissions. We accomplish this by delivering world-class energy management applications including DemandSMART™, comprehensive demand response; EfficiencySMART™, continuous energy savings; SupplySMART™, energy price and risk management; and CarbonSMART™, enterprise carbon management. Our Network Operations Center (NOC) continuously supports these applications across thousands of C&I customer sites throughout the world. Working with more than 100 utilities and grid operators globally, we deliver energy, ancillary services, and carbon mitigation resources that provide cost-effective alternatives to investments in traditional power generation, transmission, and distribution.
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 contracted revenues that the Company expects to earn and the future growth and success of the Company’s energy management applications and services, 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.