Shares of EnerNOC (ENOC) were hammered late last week after news hit that the COO resigned amid billing concerns related to demand response market manipulation.  According to Reuters, the company may have fattened revenues on the books with a loophole known as double counting.  It should be noted however, that it is speculation at this point. 

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Deutsche Bank noted on Friday that "If EnerNOC is involved in this ‘market manipulation’ we believe sales and/or margins could be impacted (there are several small customers that are not adequately shedding load today that EnerNOC would have to discontinue its relationship with or more aggressively incentive to shed load)," Shoop wrote.

Reuters details the double counting process that EnerNOC and other demand response companies may be using.  See the full article..

Shares of ENOC are now at 18 month lows and in my opinion once the dust settles, a great long opportunity will be created in the demand response leader.