Comverge, TXU Ink Deal For 100,000 Smart Thermostats
August 05 2010 - 7:59AM
Dow Jones News
Comverge Inc. (COMV) said Thursday it has signed a $30 million
agreement with Texas utility TXU energy to install about 100,000
smart thermostats to give TXU customers greater control over their
energy use.
Comverge's main business has been contracting with utilities to
remove power consumption during times of peak demand, such as a hot
summer day. The company installs devices in homes and businesses
that allows it to remotely turn down those customers' air
conditioners or other equipment temporarily, when power resources
are tight. Comverge also is pursuing a separate, though related,
business in which the company contracts with a utility to install
advanced thermostats in customers' homes and businesses that allow
them to program their air conditioners, heaters or other appliances
and operate them remotely, over the Internet.
"Consumers can use the programmable features on the thermostat
to set up their own efficiency scheme...and save money on their
utility bill," Comverge Chief Executive Officer Blake Young said in
an interview.
The current contract with TXU expands an earlier installation
and service agreement with Comverge that will allow more customers
to take advantage of the service, said Mark Grasso, TXU's chief
marketing officer.
TXU has several different rate plans for customers, from flat
rates that don't change, to time-of-use rates that vary throughout
the day, in line with the wholesale market. The smart thermostat is
popular among customers who pay time-of-use rates, as it helps them
figure out how much energy they're going to consume and how much
it's going to cost them, Grasso said. But customers that pay flat
rates also like the device because it gives them greater control
over their energy use, he said.
"Consumers demand more tools as they become more aware of their
own consumption and developments in the energy markets around
them," Grasso said. He added that in Texas, which has a competitive
retail power market, utilities compete aggressively on customer
service.
To participate, TXU customers pay about $75 for a smart
thermostat and agree to keep it installed for two years.
In addition to TXU, Comverge has contracts with Pepco Holdings
Inc. (POM) and Exelon Corp. (EXC) unit PECO to install more than
500,000 smart thermostats over the next five years.
Comverge reported last week a second-quarter loss of 42 cents a
share, a penny less than a year ago and in line with analysts'
expectations. The company forecast total megawatts under management
to grow by 800 megawatts for the year.
Shares of Comverge closed Wednesday 3% lower, at $8.19
apiece.
-By Cassandra Sweet, Dow Jones Newswires; 415-439-6468;
cassandra.sweet@dowjones.com
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