Wednesday, 20 August 2008

Comverge lowers its revenue outlook

Comverge, Inc. has lowered its revenue expectations to a range of $80-$90 million in an updated revenue outlook for full year 2008.

Referring to the second quarter performance, Robert M. Chiste, chairman, president and CEO, Comverge said the total megawatts under management is 2075, which includes 40 megawatts subject to regulatory approval.

“Our expected contracted revenue now stands at approximately $376 million and we have expanded our commercial and industrial demand response business by adding megawatts in several new geographic territories,” said Chiste.

The company’s full year revenue outlook has been impacted by a regulatory change in grid operator PJM's rules for its economic programme. It will result in a reduction in the revenues, which Comverge receives under economic, or voluntary, demand response programmes.

Comverge is focused on three long-term value creation metrics by which the company operates megawatts owned under long-term contracts, megawatts managed under open market programmes, and future payments from the long-term contracts.

In the recent past, the company has entered into a new contract with Southern California Edison (SCE) to implement a Virtual Peaking Capacity programme of up to 40 megawatts. The programme will utilise demand response resources from SCE’s commercial and industrial customers to provide the utility with capacity and energy resources for a term of four years. Other than this, Comverge has been selected for a key pilot programme at Dominion Resources to run a pilot residential demand response programme.

Second quarter revenues for 2008 were $9.5 million, a 106 percent increase compared to $4.6 million in the second quarter of 2007.

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