Constellation Energy To Acquire Demand Response Company CPower

Constellation Energy (NYSE: CEG) has signed an agreement to acquire CPower, an energy management and demand response provider with approximately 850 megawatts (MW) of demand response capacity in energy markets throughout North America.

Financial terms were not disclosed.

The transaction will expand Constellation Energy’s total demand response capacity to 1,500 MW.

CPower, headquartered in New York, N.Y., designs and manages programs that allow its commercial, utility and public sector customers to reduce electricity demand during peak demand periods. The company is authorized to manage and aggregate demand response capacity programs in New York, New England, the Mid-Atlantic states (PJM), California, Texas and Ontario, Canada.

“We believe customer demand and technological innovation will drive strong growth in the demand response market in the years ahead,” said Kathleen Hyle, senior vice president, Constellation Energy, and chief operating officer of the company’s commercial division. She added that the acquisition of CPower will greatly expand Constellation’s customer base and sales presence in key markets such as Texas, New England and the PJM Interconnection regional transmission organization.

“As electricity load management and demand response become ubiquitous offerings, users of energy are seeking a business partner that can provide the maximum value – for management of both the purchasing and the use of electricity,” said Gary Fromer, CEO of CPower.

The agreement is subject to customary closing terms and conditions. Closing is expected in 4Q10.

Constellation Energy is a supplier of energy products and services to wholesale and retail electric and natural gas customers. It owns a diversified fleet of generating units located in the United States and Canada, totaling approximately 9,000 MW of generating capacity. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. Headquartered in Baltimore, Constellation Energy had revenues of $15.6 billion in 2009.

The demand response (DR) industry is expected to begin a period of dramatic growth in 2013, according to a recent Pike Research report, which forecasts market growth from $1.4 billion in 2010 to $8.2 billion in 2020. The Federal Energy Regulatory Commission (FERC) says demand response has the potential to reduce peak electricity demand in the U.S. between 38 gigawatts (GW) and 188 GW. The agency recently published its National Action Plan on Demand Response.

Two of the major players in U.S. demand response are EnerNOC (NASDAQ: ENOC)  and Servidyne (Nasdaq: SERV).

Website: http://www.cpowered.com     

Post Your Comment

Your email address will not be published. Required fields are marked *