Echelon (ELON) Rocketing Higher On Duke Energy (DUK) Smart Grid Deal

Echelon (ELON) is rocketing higher this morning after the company announced it will be the long term supplier for Duke Energy’s (DUK) smart grid system to be deployed initially in Ohio with smart grid expansion plans in Indiana as well.  The company provides electricity to 4 million customers across North & South Carolina, Indian, Ohio and Kentucky and is the nation’s 3rd largest utility.  The company has received regulatory approval to deploy their smart grid in Ohio with plans for a 5 year mass deployment.  They are currently seeking approval in Indiana and making progress in the other states it serves.

Needless to say, a relationship with Duke Energy (DUK) is huge for a small company like Echelon (ELON) and is a real testament to their technology.  No wonder the stock is up nearly 40% as I write this.  The initial order for Echelon is $15.8 million with deliveries expected to begin at the end of the quarter.  Assuming a full deployment in Indiana and Ohio, the deal is closer to $150 million over time.

“Duke Energy has described the smart grid as ‘one of the greatest advancements of the 21st century,'” said Ken Oshman, CEO of Echelon. “We whole-heartedly share this view. Our NES system embeds the power of control networks into a utility’s core asset – the electric grid – replacing the meters of the past with the intelligent devices of the future. They provide the intelligent ‘end-points’ that not only monitor energy and the health of the grid, but also help utilities and their customers better understand and more efficiently manage energy consumption. We’re excited to be able to help Duke Energy lead the utility industry into the future.”

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