“Our objectives in seeking MBRA were to obtain clarity regarding the obligations of demand response providers and ensure that we can provide an expanded range of  wholesale services for the benefit of our customers, including the purchase and sale of ancillary services, energy and capacity” said Kevin Evans, EnergyConnect’s President and Chief Executive Officer, “demand response is more than just load drop; our goal is to provide energy consumers with innovative Smart Grid technologies which enable them to benefit from access to wholesale electricity markets.”

In its order, FERC determined that demand response activities alone were outside the scope of its jurisdiction as defined by the Federal Power Act, but determined certain transactions which involve the sale of electric energy for resale would be subject to FERC jurisdiction. As a result of the decision, EnergyConnect is now a public utility as defined by Section 201(e) of the Federal Power Act.

FERC noted that “where an entity is only engaged in the provision of demand response services, and makes no sales of electric energy for resale” that entity would not be subject to FERC’s jurisdiction. This ruling advances demand response in organized markets by clarifying its definition and refutes the assertion that demand response is a prohibited retail “sale for resale” of electricity activity.

About EnergyConnect Group, Inc.

EnergyConnect delivers industry leading demand response technologies and services to commercial, industrial and institutional energy users enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading edge technology or about investor relations, visit:  /

Forward Looking Statements

This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information:

Media Contact:

Joe Bugica
jbugica@energyconnectinc.com
408.750.6335 

Investor Relations:

Andrew Warner, CFO
awarner@energyconnectinc.com
408.898.4592      

Kevin R. Evans, EnergyConnect’s President and Chief Executive Officer, stated, “We are pleased with the support Aequitas has shown EnergyConnect and our business model. This extension of the facility is expected to provide the necessary working capital to support our business into 2012.”

About EnergyConnect Group, Inc.
EnergyConnect delivers industry leading Demand Response technologies and services to commercial, educational and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading edge technology or about investor relations, visit:  /.

Forward Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, please contact:

Investor Relations:
Andrew Warner, CFO
408.898.4592

One of the few positives of the current economy has been reduced electricity prices at the wholesale level. However, as the economy recovers, electricity prices will increase in response to increased demand.

Firm Service Level or Guaranteed Load Drop - Which One is Best for You?

Enrollment for the EventConnect ILR capacity program in the PJM/Mid-Atlantic region is now open. Unlike other regional demand response programs, the Event Connect ILR program offers a choice of two methods to quantify load drop. Customers may elect to reduce to a Firm Service Level (FSL) or provide a Guaranteed Load Drop (GLD). What differentiates the two and which is the best option for your organization?  

Read these and more articles: EnergyConnect Fall 2009 Smart Energy Management Newsletter (.pdf)

Rising costs will create opportunities for businesses and institutions that are willing to actively manage their use of electricity to hold down costs. The Federal government has encouraged a number of initiatives targeted at helping customers realize bottom line benefits when they conserve energy and reduce consumption in response to short term prices and temporary grid shortages. Many local and regional utilities have implemented changes that allow their customers to take advantage of their ability to limit consumption when the need is greatest. How does it work?

In the PJM region, which covers an area ranging from New Jersey to North Carolina and west as far as Illinois, there are several leading programs that illustrate the possibilities. For example, customers can be paid for agreeing to limit or reduce consumption on the very highest demand days of the summer. The payments reflect the value of avoiding construction of new power plants. 

Another program provides payments for reducing use when the hourly cost of electricity is high. Customer demand varies throughout each day and throughout the year. Nighttime use may be 30 to 50% less than day time peaks. Maximum hourly use on a mild fall day may be only 60% of the peak use on a hot summer day. In fact, many utilities operate at a 50% average of capacity on an annual basis. Utilities manage their generators so that the plants with the most expensive fuels are run only when demand is very high. One result is that the hourly value of electricity varies tremendously. The highest 10% hours may average 3 to 5 times the average wholesale cost of power. If your utility is selling the energy to you at a price less than their cost, there may be an opportunity to make money by curtailing your consumption for a few hours in addition to reducing retail charges. Programs that recognize the value of Demand Response are growing and are likely to be made available to you.

Flexible, voluntary demand response availability is on the rise
Price responsive load management is the next phase of demand response and FlexConnect is an effective gateway to controlling when and how you reduce. FlexConnect is a web-based  energy information system which helps customers identify when prices are likely to be high and predict the benefits of timely reductions in use. By combining pricing and savings estimates with typical consumption patterns, customers can decide if it is worth reducing or shifting electricity use to a different time. Reductions of use in response to price are voluntary – the utility does not control the timing – you do.

In addition to providing an easy to use energy information system, EnergyConnect manages the administration and payment settlement with your grid operator. You, the customer, employ knowledge of your own equipment, processes and operational constraints to decide how and when to respond to prices. If an opportunity looks appealing, a simple mouse click lets your grid operator know when you intend to curtail. EnergyConnect monitors your consumption, confirms the load drop with the grid operator and secures a payment for your efforts. Learn more about FlexConnect by requesting a demo. Call us at 866.488.7642 or write us at info@energyconnectinc.com.

With the 2009 season behind us, plan now for energy cost mitigation in 2010. With less than a month left in 2009, EnergyConnect is actively enrolling electricity consumers for 2010 programs in the mid-Atlantic, Midwest and California regions. Whether you are on the east or west coast, it is now time to renew your commitment for next year.

Last year alone, over 250 facilities in the PJM market area enrolled in EnergyConnect’s program which pays large energy users to standby to cut back power in the event of a grid emergency. In tests conducted by PJM, our customers performed significantly beyond the committed load reduction to the grid. The certified demand response capacity from the EnergyConnect customer base was more than 200% over 2008 levels. In total, the combined load drop was enough to offset the generation output from a large coal plant or several natural gas peaking plants.

In California, we’ve had another successful year of participation in our utility programs. With more than 200 service accounts enrolled, over 90% of our customer base exceeded their load drop commitments for 2009. All in all, an overwhelming response from our reliable customer base.

As the US considers comprehensive energy and climate legislation, the importance of demand response is underscored. A recent discussion draft by FERC (Federal Energy Regulatory Commission) outlines requirements for a National Action Plan for Demand Response. The action plan seeks to identify requirements to allow States to maximize the amount of demand response resources and to design a national communication program that includes broad-based customer education and support.

“More efficient use of our existing electricity resources is putting money back in customers’ pockets while offsetting the need to turn to costly peaking plants to meet demand,” said Kevin Evans, EnergyConnect’s President and Chief Executive Officer. “We believe that FERC’s commitment to a national action plan, combined with the strong 2009 performance demonstrated by our growing customer base will continue to drive participation in demand response offerings and position EnergyConnect for further success in the coming year.”

In addition to event-based demand response programs, EnergyConnect offers flexible programs which pay organizations who elect to reduce electrical consumption in times of peak demand indicated by high wholesale market pricing. Our award-winning FlexConnect platform allows you to quickly evaluate when to engage in demand response through an easy-to-use, intuitive web interface.

The annual enrollment period for the 2010 EventConnect ILR in the PJM region is open only for a short period once a year. Enroll now to guarantee seamless registration in time for next year’s season. For California programs, enrollment is ongoing and the sooner you register, the sooner you start earning. To learn more and register as a demand response resource, please call  866.488.7642 or visit one of the web links:

PJM Area (mid-Atlantic and mid-West): www.energyconnectinc.com/ilr
Northern California:  www.energyconnectinc.com/pge/
Southern California: www.energyconnectinc.com/sce/

• FSL is the level a client’s load cannot exceed during an event (drop to).

Guaranteed Load Drop (GLD) works best when a customer can focus on a megawatt (MW) amount to reduce.  The GLD is a reduction from whatever the consumption level was on a similar day and time as the emergency event. Organizations often elect GLD when they can turn on a backup generator or reduce a process with consistent or predictable load.

• GLD is the amount of load an organization will drop during an event (drop by).

Situations where one may be clearly preferred over the other:

FSL is preferred when:
• Customer has control of operations and an understanding of a comfortable level they can drop to if needed
• A process automation system can be programmed to reduce load to a predictable level and hold to that level for a time without causing inconvenience
• A back-up generator is not available and other methods to reduce load are variable or not easily quantified (HVAC, lighting, operations, etc.)

GLD is preferred when:
• The reliable reduction method is to turn on backup generation 
• A process or set of equipment can be turned off to produce a predictable load shed
• The organization has experienced significant load growth since the last summer.  Since the FSL is based on peak demand from the previous summer, the FSL method would require extra effort to achieve last year’s levels and further reduce to the target 
EnergyConnect is available to help you make the GLD vs. FSL decision, customize your curtailment plans, handle all the registration paperwork, and administer the program for you. We make participation easy. Contact your local EnergyConnect representative for assistance and to get enrolled for the 2010 season. 

EnergyConnect, Inc. (OTCBB: ECNG - News), a leading provider of smart grid demand response services and technologies, today announced that it has begun enrolling electricity consumers located in the mid-Atlantic and Midwest-based PJM market in its 2010 EventConnect ILR Program. EventConnect ILR integrates into PJM’s Interruptible Load Response program (ILR) which is designed to help ease the pressure on the nation’s largest electricity grid during times of peak demand.

Last year alone, over 250 facilities in the PJM market area enrolled in EnergyConnect’s program that pays large energy users to be on standby to cut back power in the event of a grid emergency. In tests conducted by PJM, the EnergyConnect customer base significantly exceeded the committed load reduction to the grid. The certified demand response capacity from the EnergyConnect customer base was more than 200% over 2008 levels. In total, the combined load drop from the EnergyConnect customer base is enough to offset the generation output from a large coal plant or several natural gas peaking plants.

As the US considers comprehensive energy and climate legislation, the importance of demand response is underscored. A recent discussion draft by FERC (Federal Energy Regulatory Commission) outlines requirements for a National Action Plan for Demand Response. The action plan seeks to identify requirements to allow States to maximize the amount of demand response resources and to design a national communication program that includes broad-based customer education and support.

“More efficient use of our existing electricity resources is putting money back in customer’s pockets while offsetting the need to turn to costly peaking plants to meet demand,” said Kevin Evans, EnergyConnect’s President and Chief Executive Officer. “We believe that FERC’s commitment to a national action plan, combined with the strong 2009 performance demonstrated by our growing customer base will continue to drive participation in demand response offerings and position EnergyConnect for further success in the coming year.”

In addition to EventConnect ILR, EnergyConnect offers flexible programs that pay customers electing to reduce electrical consumption in times of peak demand indicated by high wholesale market pricing. The company’s award winning FlexConnect platform allows customers to quickly evaluate when to engage in demand response through an easy to use, intuitive web interface.
 
The annual enrollment period for the 2010 EventConnect ILR program is currently open. To learn more and register as a demand response resource, please visit: www.energyconnectinc.com/ilr or call: 866.488.7642.

About EnergyConnect Group, Inc.
EnergyConnect delivers industry leading Demand Response technologies and services to commercial, educational and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading edge technology or about investor relations, visit:  /.

Forward Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, please contact:

Media Contact:
Rich Quattrini
rquattrini@energyconnectinc.com
408.340.7940

Investor Relations:
Andrew Warner, CFO
408.898.4592

“We are pleased with the continued improvement in our operating results. Revenue for the period reflects the solid foundation of business that we’ve established this year in the capacity markets” commented Kevin Evans, EnergyConnect’s President and Chief Executive Officer. “The Company’s performance remains on track with our expectations given the reduced loads, mild summer and historically low electricity prices.” 

The Company recorded net income of $528,000 or $0.01 per share for the three months ended October 3, 2009, compared to net income of $2,164,000 or $0.02 per share for the three months ended September 27, 2008. 

Revenue and net loss for the nine months ended October 3, 2009 were $19,070,000 and $952,000 ($0.01 loss per share), respectively, compared to revenue and net loss of $24,083,000 and $2,144,000 ($0.02 loss per share) for the nine months ended September 27, 2008, respectively. Included in the loss for the nine months ended September 27, 2008 is a loss of $11,300 from our discontinued subsidiary Christenson Electric. 

Operating expenses, for the three months ended October 3, 2009 were $2,246,000, compared to $3,024,000 in the three months ended September 27, 2008. Included in these totals are non cash charges for stock-based compensation of $187,000 and $172,000 for the three months ended October 3, 2009 and September 27, 2008, respectively. The $778,000 decrease in year over year quarterly expenses was primarily due to staff reductions, salary reductions taken by the management team, and a continued effort to lower operating expenses. 
 
Cash and certificates of deposits were $1,725,000 at October 3, 2009 compared to $710,000 at January 3, 2009, of which $66,800 was restricted at both quarter and year end. 

About EnergyConnect
EnergyConnect delivers industry leading Demand Response technologies and services to commercial, educational and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability. For more information about this leading edge technology or about investor relations, visit:  /.

Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. 

For further information, please contact:
Andrew Warner, CFO
408.898.4592 

Participate in the conference call:
866 -289-3380

Instructions for International callers and details of the audio recording of the call are available on the Investor Relations section of the EnergyConnect website. The webcast will also be available on this site for 90 days after the conference.

About EnergyConnect
EnergyConnect delivers industry leading Demand Response technologies and services to commercial, educational and industrial consumers enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid’s efficiency and reliability.  For more information about this leading edge technology or about investor relations, visit:  /.

Forward-Looking Statements
This press release includes statements that may constitute “forward-looking” statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

Contact Investor Relations:
Andrew Warner - 408.898.4592

Decision makers from business, industry and government must now seek integrated energy solutions — solutions which assure both a secure and affordable power supply, and effective management of both energy and overall operational costs. GlobalCon, presented by the Association of Energy Engineers (AEE), is designed specifically to facilitate those who need to get up to speed on the latest developments in the energy field, explore promising new technologies, compare energy supply options, and learn about innovative and cost-conscious project implementation strategies.

For more information: http://www.globalconevent.com/