This morning EnerNOC (ENOC) announced it has extended an agreement with the state of Connecticut to continue to provide its demand response services through 2014. The company has provided the state with its services since 2006, helping them to earn more than $4 million in demand response payments from EnerNOC. The payments to the state are quarterly and based on the decrease of energy use during peak demand, stabilizing energy costs and reducing the risk of blackouts.
“Connecticut was one of the early adopters of demand response, and we’re proud to extend this successful and long-standing partnership. We look forward to continuing to drive value and putting dollars back in the Connecticut budget through demand response and energy efficiency,” said Tim Healy, CEO of EnerNOC.
The news didn’t help shares of ENOC today which were down another 4% today. Yesterday, the stock violated the 50 day moving average, setting up a possible test of the next level of support around 25.
The market for the demand response industry is growing rapidly. While the company’s stock was affected in this situation I can see stocks for companies involved in demand response and energy management rising in 2010.