EnerNOC Surpasses $500 Million in Contracted Revenues

BOSTON--(BUSINESS WIRE)--EnerNOC, Inc. (NASDAQ: ENOC), a leading developer and provider of clean and intelligent energy solutions, today announced that it has surpassed $500 million in contracted revenues, a significant milestone demonstrating the strong growth of its business. As of the date of this press release, EnerNOC expects roughly 90% of this contracted revenue to be earned by May 31, 2012 and the remainder to be earned through 2018.

“A year ago, EnerNOC operated primarily on a bi-coastal basis, but we have made a number of important, strategic investments aimed at diversifying our customer base and expanding into new markets throughout North America, while continuing to grow in our existing markets,” said Tim Healy, chairman and CEO of EnerNOC.

Today, EnerNOC is actively engaged in electricity markets in New England, New York, the Mid-Atlantic, the Southeastern US, Florida, Ontario, Texas, the Pacific Northwest, California and New Mexico. The Company has over 1,500 megawatts of demand response capacity under management and more than 3,000 customer sites enrolled in its demand response network.

“Our customers recognize that their participation in building a smarter electricity grid is instrumental to achieving a more secure, independent and clean energy future,” continued Healy. “With half a billion dollars of contracted revenue and the capital that we raised during our IPO and follow-on offering, we believe that we are positioned to continue to execute on a disciplined growth strategy that is designed to deliver the benefits of demand response and other energy management solutions, while creating long term value for our shareholders.”

In addition to demand response, EnerNOC has actively invested in the growth of its energy efficiency and energy procurement solutions, positioning the Company to play an increasingly important role as a partner to its commercial, institutional and industrial customers. EnerNOC is also growing its footprint as a provider and administrator of energy efficiency programs for utilities, working with them to achieve their energy efficiency goals and mandates.

“In today’s environment, businesses and institutions are keenly interested in reducing energy costs. With our demand response network now in excess of 3,000 customer sites across North America, we believe that we are well-positioned to deliver cost-saving solutions more rapidly and cost-effectively than ever before. We already provide a comprehensive suite of energy management solutions beyond demand response, including continuous commissioning to reduce wasteful energy usage through data-driven detection and automated efficiency recommendations, as well as energy procurement services to help control rising energy costs. We believe that our position in the market will allow us to expand these offerings and introduce others, including renewable energy related products and solutions that will continue to help our customers achieve measurable energy cost savings and support their sustainable business practices,” concluded Healy.

Contracted revenues represent EnerNOC’s estimate of total payments that it currently expects to earn in connection with providing demand response solutions to grid operators and utilities under long-term contracts and pursuant to open market bidding programs, as well as providing energy management solutions to its commercial, institutional and industrial end-use customers.

Assumptions Regarding Contracted Revenues

The contracted revenues estimated from EnerNOC’s long-term contracts, open market bidding programs and its provision of energy management solutions have been prepared by management and are based upon contractual terms, open market bidding program rules and a number of assumptions, including:

• EnerNOC’s ability to provide to its utility and grid operator customers the capacity that it has committed to provide under long-term contracts and pursuant to open market bidding programs. Our expectations are based on our experience to date in building out our existing load management systems;
• EnerNOC’s contracts with its utility and grid operator and commercial, institutional and industrial end-use customers not being terminated, modified or delayed or becoming subject to governmental regulation that could materially and adversely affect EnerNOC’s interests;
• the rules and assumed pricing of the various open market bidding programs in which EnerNOC participates remaining unchanged in all material respects;
• the rate of termination of EnerNOC’s commercial, institutional and industrial end-use customers under its long-term contracts remaining consistent with EnerNOC’s historical average;
• the electricity consumption of EnerNOC’s commercial, institutional and industrial end-use customers remaining consistent with historical use throughout the term of its contracts with such customers; and
• EnerNOC’s ability to obtain regulatory approval for its long-term contracts with certain utility and grid operator customers where such approval is required. Approximately 10% of the contracted revenue referenced in this release is subject to such regulatory approval.

Any differences among these assumptions, other factors, and EnerNOC’s actual experiences may result in actual revenues earned in future periods differing from management’s current estimate of contracted revenues to be earned. In management’s view, such information was prepared on a reasonable basis, reflects the best currently available estimates and judgments, and, to the best of management’s knowledge and belief, presents the assumptions and considerations on which EnerNOC bases its belief that it can earn such contracted revenues.

About EnerNOC

EnerNOC, Inc. is a leading developer and provider of clean and intelligent energy solutions to commercial, institutional, and industrial customers, as well as electric power grid operators and utilities. EnerNOC's technology-enabled demand response and energy management solutions help optimize the balance of electric supply and demand. The Company uses its Network Operations Center, or NOC, to remotely manage and reduce electricity consumption across a network of commercial, institutional, and industrial customer sites and make demand response capacity and energy available to grid operators and utilities on demand. For more information visit www.enernoc.com.

Safe Harbor Statement

Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including, without limitation, statements relating to the future growth and success of the Company's demand response and energy management solutions, including statements related to contracted revenues that the Company expects to earn, the Company’s ability to continue to execute on a disciplined growth strategy, and the Company’s ability to create long term value for its shareholders, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those set out in the assumptions regarding contracted revenues set forth above and those risks, uncertainties and factors referred to under the section “Risk Factors” in EnerNOC's Annual Report on Form 10-K for the year ended December 31, 2007 and Quarterly Report on Form 10-Q for the period ended March 31, 2008, as filed with the Securities and Exchange Commission on March 28, 2008 and May 13, 2008, respectively, as well as other documents that may be filed by EnerNOC from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company’s actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. EnerNOC is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.