BOSTON, May 27, 2014 (GLOBE NEWSWIRE) -- EnerNOC, Inc. (Nasdaq:ENOC), a leading provider of energy intelligence software (EIS), today commented on the United States Court of Appeals for the D.C. Circuit decision on Electric Power Supply Association v. Federal Energy Regulatory Commission (FERC) which was issued on Friday, May 23, 2014. The decision covered the topics of FERC Order 745 and FERC jurisdiction.
FERC Order 745 was originally issued subject to refund due to an appeal that was filed in June 2011. If implemented, the May 23rd decision could lead to changes in the way certain energy payments are calculated for certain U.S. economic demand response markets, including PJM Interconnection, and potentially may result in the institution of a refund process.
"The Court's decision reaffirms the valuable role that demand response plays in electricity markets, benefitting consumers economically and increasing system reliability. The issue being addressed here is a question of jurisdiction, and however that is ultimately resolved, EnerNOC is confident that demand response will continue to be a vital and important part of our nation's energy markets," said Tim Healy, Chairman and CEO of EnerNOC.
Energy payments that are the subject of Order 745 have not been a material component of EnerNOC's revenues. Of EnerNOC's approximately $1 billion of revenue over the last three years, these payments have represented approximately 2% of those revenues. EnerNOC's preliminary estimate of the impact of Friday's decision suggests that EnerNOC and its customers could be required to refund in a future period as little as $0 and as much as $20 million if Friday's decision on Order 745 survives any continued appeals process. Order 745 does not pertain to capacity payments which the Company is contractually due or has previously earned.
In the jurisdictional aspect of the decision, it suggests that states, not FERC, are authorized to oversee demand response participation in energy markets. If that part of the decision is upheld after an appeals process, the Company would expect state regulators to take a much more active role in facilitating demand response activity. If the decision is broadened to include capacity and ancillary services markets, the Company would expect state programs to expand significantly to preserve the nearly $12 billion of consumer savings that demand response delivered last year in the PJM market alone. Whether demand response participation in energy markets becomes the sole jurisdiction of state regulators – who have traditionally been significant supporters – or remains subject to a combination of state and federal regulation, it is likely to be a topic of continued debate on any appeal. EnerNOC expects demand response solutions will continue to deliver major economic benefits to consumers of electricity under either scenario.
About EnerNOC
EnerNOC (Nasdaq:ENOC) is a leading provider of energy intelligence software (EIS). Thousands of enterprises worldwide use EnerNOC applications and professional services to bring new clarity to how they buy energy, how much they consume, and when they use it to drive operational efficiency, improve productivity, and manage energy expenses. EnerNOC's suite of EIS applications for the enterprise include: SupplySMART™, energy supply and utility bill management applications; EfficiencySMART™, energy consumption and energy project management applications; and DemandSMART™, demand response and demand management applications. Hundreds of utilities and grid operators worldwide rely on EnerNOC applications to meet demand-side management objectives, enhance grid reliability, and provide cost-effective alternatives to traditional power supply resources. EnerNOC's applications for utilities include EnerNOC Demand Resource™, a capacity-based agreement that provides utilities an assured level of load reduction delivered by EnerNOC on a turnkey, fully outsourced basis, and EnerNOC Demand Manager™, software-as-a-service (SaaS) that provides utilities and retailers with the tools to manage their demand response programs. EnerNOC's Network Operations Center (NOC) offers 24x7x365 customer support. For more information, visit www.enernoc.com.
EnerNOC, Inc. 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 the potential impact of the decision by United States Court of Appeals for the D.C. Circuit regarding FERC Order 745, the Company's future financial performance and the future growth and success of the Company's energy intelligence software and related solutions, 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.