EnerNOC defends against 'market manipulation' accusations
EnerNOC Inc. (Nasdaq:ENOC) executives fired back at East Coast grid operator PJM Interconnection on Wednesday, after the grid operator made accusations of “market manipulation” by demand response providers.
Top execs at EnerNOC — a Boston-based company that leads the demand response sector and counts PJM as a top revenue source — spent much of the company’s fourth quarter earnings call defending against the claims by PJM. On Feb. 4, PJM released a statement that claimed providers of demand response services have been double-counting the megawatts saved from the grid, leading to overpayment.
EnerNOC president David Brewster said that the company “does not double count demand response resources or inflate the amount of capacity we provide to the grid,” and said PJM is trying to unfairly reimburse providers of demand response.
“We think it’s unfortunate to try to suggest that this is an issue about double counting, when their policy position really amounts to underpaying,” Brewster said.
After a string of questions about the situation from financial analysts, EnerNOC CEO Tim Healy said the PJM statement has created uncertainty and confusion among its customers. The company has been working to reassure customers that “the demand response industry is one that is sound and robust and growing,” Healy said.
“There really is no substance to these attacks, and that’s something that we continue to try to explain as simply as possible,” he said.
Demand response services involve paying commercial and industrial clients to lower their electricity during peak demand periods, helping to avoid blackouts and other grid problems. EnerNOC leads the demand response market with 5,300 megawatts under management.
Read more in Mass High Tech.
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