By Jeff St. John
Cutting electricity use is still a growing business for demand response provider EnerNoc Inc. (NASDAQ:ENOC), which on Monday reported $42.4 million in sales for the second quarter of 2009, a 79 percent increase compared to the same quarter last year.
EnerNoc lost $5.7 million in the second quarter, down from a loss of $10.4 million in the same quarter last year.
The Boston-based company also said it nearly doubled its megawatts under management since last summer, with 3,150 megawatts as of June 30, 2009, about 450 of them added in the second quarter. That's a measure of how much power it can turn down at its industrial and commercial clients' buildings to help utilities manage peak demand.
Competitors in this demand response aggregation business include Comverge (NASDAQ:COMV), CPower, EnergyConnect and Constellation NewEnergy. EnerNoc is the biggest, though Comverge is close with more than 3,000 megawatts under management as of this month, up from about 2,600 in March (see Comverge Reports $9.4M First Quarter Loss).
EnerNoc's customers include the city of Boston, the Salt River Project in Arizona, Allegheny Power, Baltimore Gas and Electric, Delmarva Power and Light Company, and Potomac Electric Power Company (see EnerNoc Harvests Power in Maryland and In New England, A Demand Response Company Gets Utility-Sized). Most recently it has added up to 65 megawatts in future contracts with Idaho Power, and has about $750 million in booked revenues over the next several years.
The company also projected it would earn $88 million to $98 million in the third quarter of 2009, in line with analyst expectations. The third quarter is when most of the revenues from one of its largest areas of operation, that of Mid-Atlantic grid operator PJM, will be reported (see Green Light post).
EnerNoc's revenues come mainly from the money paid by utilities and other power providers for being able to turn down lots of customers' power at once. But it's also been expanding into energy efficiency services and most recently into carbon accounting with its acquisition of eQuilibrium Solutions (see The Consolidation Continues: EnerNoc Buys Carbon, Energy Efficiency Software Startup).
For the 2009 fiscal year, EnerNoc on Monday projected revenues of $172 million to $185 million, up from previous guidance of $160 to $172 million, as well as an annual loss of 76 cents to 86 cents per share, better than previous projections of losses of 93 cents to $1.04 per share.