News
PowerOptions Announces Demand Response Program
Boston, January 20, 2010. PowerOptions, Inc., an energy buying consortium for non-profit organizations throughout the Commonwealth of Massachusetts, announced today a demand response program called "PeakResponse." PowerOptions is partnering with Comverge, Inc. (Nasdaq: COMV), a clean energy company specializing in helping customers and utilities manage their electricity consumption and lessen strain on the grid through control technology and other energy management solutions. Under the PeakResponse program, PowerOptions members would receive payments for reducing their electric usage during certain times of the day when there are constraints on the grid or high prices in the market.
"We are very excited about making this program available to our members," said Cynthia Arcate, President and CEO of PowerOptions. "While these types of programs have been available in the region for several years, many of our members have not taken advantage of them because of the time and effort needed to find the right supplier and negotiate the terms of the arrangement. As PowerOptions has done for energy purchasing, we've used our buying power to secure an excellent program for our members, The PeakResponse program gives all customers, regardless of size, the opportunity to participate in these region-wide demand response initiatives."
The PowerOptions agreement with Comverge calls for Comverge to enroll a minimum of 35 megawatts of load reduction within the first 3 years of the 5-year contract. At that level, members would have earned about $5 million over the term of the contract.
"This is money our members can put to other uses in their facilities without making major adjustments in their operations," said Arcate.
According to PowerOptions, the contract with Comverge will also provide members with access to energy billing software that will enable members to monitor and manage their energy usage, providing greater opportunity for savings and measuring the effects of conservation.
"We applaud PowerOptions for developing this program for its members," said Deirdre Manning, Director of Sustainability and Energy Management at Boston College. "Demand response is an important component to any institution's greenhouse gas reduction efforts and has the added bonus of providing revenue rather than costs while reducing consumption."
"PowerOptions' PeakResponse program promotes transparency and accessibility, the most important components in our Smart Grid and energy efficiency efforts," said George Hunt, Comverge Senior Vice President, Commercial & Industrial Sales. "Through this alliance, Comverge will be able to make demand response and efficiency programs more accessible to all PowerOptions members, helping them manage their energy costs and putting those savings back into their businesses."
The award-winning PowerOptions® program was formed by HEFA, the Massachusetts Health and Educational Facilities Authority, in 1996 and operates as a stand-alone nonprofit organization. It is among the largest electricity and natural gas purchasing consortiums in Massachusetts, with $220 million of annual energy purchases and a combined demand of approximately 200 megawatts of electricity and 31.6 million decatherms of expected natural gas usage (for the contract term ending October 2011). Any nonprofit or public institution in Massachusetts may become a member and participate in this collective purchasing effort. For more information, visit www.poweroptions.org.
