Constellation Energy to provide Montana-Dakota Utilities with 25 MW of load response capacity over five-year period; customers can earn payments on amount of electricity they commit to reduce
December 12, 2011
– First-of-a-kind Program for Utility Helps to Offset Generation Needs and Provides Additional Revenue Stream for Commercial and Industrial Electric Customers
Constellation Energy (NYSE: CEG) today announced that it has been selected by Montana-Dakota Utilities Co., a division of MDU Resources Group, Inc. (NYSE: MDU), to develop a load response program for the utility’s commercial and industrial electric service customers in Montana, North Dakota and South Dakota. Under the terms of the agreement, Constellation Energy’s retail business will contract with Montana-Dakota customers to provide Montana-Dakota Utilities with up to 25 megawatts of load response capacity over an initial five-year period.
Montana-Dakota’s load response program offers customers the opportunity to earn payments based on the amount of electricity they commit to reduce during a curtailment event. The minimum curtailment for participation in the program is 50 kilowatts.
“We’re pleased to be able to offer this new load response program to our commercial and industrial customers,” said Dave Goodin, president and CEO of Montana-Dakota. “In addition to providing a revenue opportunity for customers, load response helps meet Montana-Dakota’s commitment to environmental stewardship. Curtailing electric use during times of peak use maximizes our existing resources and helps to offset the need for additional generation and transmission facilities.”
“Load response programs are an effective way for utilities, such as Montana-Dakota, to ensure reliable, cost-competitive electricity supply for their customers,” said Gary Fromer, senior vice president, demand response, for Constellation Energy. “We look forward to working with Montana-Dakota in developing its load response capabilities.”
As part of Montana-Dakota’s load response program, participating customers also have the option to leverage Constellation Energy’s VirtuWattTM energy management technology to track real-time electricity use and to automate curtailment.
Constellation Energy currently manages load response programs for commercial and industrial customers in the mid-Atlantic (PJM), New England, New York, Texas (ERCOT), California and Ontario regions. The company’s VirtuWattTM 3.0 , which is also available as an iPhone® and iPad® app, enables customers to better monitor and manage their electricity use and maximize the financial benefits of load response programs through minute-to-minute metering, real-time pricing information, marketplace bidding capabilities and automated energy curtailment strategies. VirtuWatt’s open architecture is compatible with all major building management systems. To watch a brief video about Constellation Energy’s VirtuWattTM offering, please click here.
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The materials provided and any offerings described herein are those of Constellation NewEnergy, Inc., a subsidiary of Constellation Energy Group, Inc.
About Constellation Energy
Constellation Energy is a leading competitive supplier of power, natural gas and energy products and services for homes and businesses across the continental United States. It owns a diversified fleet of generating units, totaling approximately 12,000 megawatts of generating capacity, and is a leading advocate for clean, environmentally sustainable energy sources, such as solar power and nuclear energy. The company delivers electricity and natural gas through the Baltimore Gas and Electric Company (BGE), its regulated utility in Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation Energy had revenues of $14.3 billion in 2010.
About Montana-Dakota Utilities Co.
Montana-Dakota Utilities Co. distributes natural gas and generates, transmits and distributes electricity and provides related services in the northern Great Plains. The company serves approximately 125,000 electric customers and 245,000 natural gas customers in 262 communities in North Dakota, South Dakota, Montana and Wyoming. Montana-Dakota is a division of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as “MDU.”
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