Constellation Energy Signs Agreement to Acquire Energy Management and Demand Response Leader CPower
September 17 2010 - 9:25AM
Business Wire
Constellation Energy (NYSE:CEG) today announced it has signed an
agreement to acquire CPower, a leading energy management and demand
response provider managing approximately 850 megawatts of demand
response capacity that can be dispatched in energy markets
throughout North America. The transaction would expand
Constellation Energy’s total demand response capacity to 1,500
megawatts, and both strengthen and complement the company’s
position as a leader in competitive electricity and natural gas
supply. Terms were not disclosed.
Privately held CPower (www.cpowered.com), 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. “The acquisition of CPower, one of the largest, most
innovative and most respected players in the demand-management
field today, will greatly expand our customer base, sales presence
and business partner community in key markets such as Texas, New
England and the PJM Interconnection regional transmission
organization, where Constellation Energy is an energy supply
leader.
“The addition of CPower to our team will strengthen
cross-selling opportunities and operational capabilities, and will
enhance demand-management product development,” Hyle said. “The
expanded sales and marketing presence and diverse demand response
expertise will accelerate deployment and commercialization of our
recently introduced online energy management product, VirtuWatt,
which is redefining the way power-intensive businesses reduce
demand and lower energy bills.”
“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, chief
executive officer, CPower. “As a critical, integrated component of
Constellation Energy, we will be able to provide unparalleled value
to our customers and business partners immediately, and will be in
a spectacular position to innovate, with new VirtuWatt-based value
offerings that have been unavailable in the demand response markets
heretofore.”
The agreement is subject to customary closing terms and
conditions. Closing is expected in the fourth quarter of 2010.
About Constellation Energy
Constellation Energy (www.constellation.com) is a leading
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 megawatts of generating capacity, and is among
the leaders pursuing the development of new nuclear plants in the
United States. The company delivers electricity and natural gas
through the Baltimore Gas and Electric Company (BGE), its regulated
utility in Central Maryland. A FORTUNE 500 company headquartered in
Baltimore, Constellation Energy had revenues of $15.6 billion in
2009.
About CPower
CPower delivers targeted energy management and demand response
services that enable companies to optimize their facilities and
operations through strategic energy reduction initiatives and earn
market payments for those reductions. Through its advocacy for
energy users, and partnerships with utilities and grid operators,
CPower works to design and manage programs that maximize the
rewards for energy reductions, and provide reliable relief to grid
operators. CPower works with clients across North America,
including those in the major energy markets of New England, New
York, the Mid-Atlantic region, Texas, California and Ontario. To
learn more about CPower, visit www.cpowered.com.
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