Comverge And Constellation Close Transaction To Form New, Standalone Demand Response Company Named Cpower
November 4, 2014
NORCROSS, Ga., and BALTIMORE (Nov. 4, 2014) — Comverge and Constellation today completed the transaction to combine their commercial and industrial (C&I) demand response businesses. Starting today, the combined business will operate as a new standalone company independent from Comverge and Constellation named CPower focused on delivering a full spectrum of demand response offerings to C&I customers across the United States. CPower will be one of the largest demand response companies in North America.
H.I.G. Capital, a leading middle-market private equity firm and the current owner of Comverge, will hold a majority ownership interest in CPower. Constellation will retain a minority ownership interest. Former Comverge Chief Financial Officer John Horton will serve as President and CEO of CPower.
Existing demand response customers of Comverge and Constellation will experience no disruption to service as a result of the combination, and all existing customer and partner relationships will continue.
“Demand response is a proven resource that helps contribute to a more reliable grid, and we are significantly increasing our investment in this business to make sure we remain a strong force in the industry and continue to exceed our customers’ expectations,” said Horton. “The leaders of CPower have helped thousands of C&I customers optimize their participation in demand response programs, providing them with a new source of revenue that can have a significant impact on their bottom line.”
Constellation will continue to promote demand response services to its power and gas customers through CPower.
“We believe the increased focus of the new company will enable CPower to meet increasing technical demands and respond to changing market conditions to provide the best possible service for our customers,” said Mark Huston, President, Constellation Retail. “Constellation will continue to promote demand response products to our customers to support a holistic energy strategy through CPower.”
Comverge will now focus exclusively on delivering world-class solutions to help electric utilities deploy successful demand response, energy efficiency, and customer engagement programs targeting residential and small business customers.
The name CPower was selected for the new business because of its strong history in the demand response business.
Comverge provides an integrated set of demand response, energy efficiency and customer engagement solutions that enable electric utilities to ensure grid reliability, lower energy costs, meet regulatory demands and enhance the customer experience. Through its combination of software, hardware and services, Comverge helps utilities optimize the management of every aspect of an energy management program, from participant recruitment and device installation to call center support, control events, and measurement and verification. Comverge has worked with hundreds of electric utilities to deploy nearly six million energy management devices and enroll more than 1.6 million residential customers into mass-market demand management programs. For more information, visit www.comverge.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $17 billion of capital under management.* The H.I.G. family of funds includes private equity, growth equity, real estate, credit, and life sciences. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris and Rio de Janeiro, H.I.G. specializes in the small to middle cap segments of the market in the U.S., Europe and Latin America. H.I.G. was founded in 1993 and currently employs over 250 investment professionals with significant operating and investing experience. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments to funds managed by H.I.G. Capital and its affiliates.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2013 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 22; (2) Exelon’s Third Quarter 2014 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 18; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.
Constellation is a leading competitive retail supplier of power, natural gas and clean energy solutions for homes and businesses across the continental United States. Constellation's family of retail businesses serves approximately 2 million residential, public sector and business customers, including three-fourths of the Fortune 100. Baltimore-based Constellation is a subsidiary of Exelon Corporation (Nasdaq: EXC), the nation's leading competitive energy provider, with 2020 revenues of approximately $33 billion, and more than 30,000 megawatts of owned capacity comprising one of the nation's cleanest and lowest-cost power generation fleets. Learn more at www.constellation.com or on Twitter at @ConstellationEG.
Jason Cigarran; Comverge, Inc.