Greetings!

It has been a busy three months since we sent our last quarterly update, and we want to share some of the highlights with you. In the third quarter, we added several key clients, experienced our first real-time Demand Response Event, and reached a number of other internal milestones.

EnerNOC's Customer Base Continues to Grow

In the third quarter, we added several new clients, including our first university customer. We now serve customers in the following verticals: retail chains, data centers, municipalities, office buildings, water & wastewater treatment plants, convention & entertainment facilities, and universities. We expect to announce our first healthcare clients - a large hospital and a large assisted living facility - in a few weeks.

As the only full-service provider in our market, we pay close attention to our customers' assessments of our performance. Initial feedback indicates that we are serving them well. Several existing customers have already expanded their original contracts with EnerNOC by increasing the number of backup generators for EnerNOC to manage. Others have referred us to their industry peers -- a bona fide validation of the value we are providing.

EnerNOC Delivers During First Demand Response Event

Most of you received our email update in August, which gave a "blow-by-blow" description of the days surrounding the August 14th blackout. This emergency was a perfect opportunity for us to validate our technology, software, operational procedures, and personnel. EnerNOC's execution during the Demand Response Event (DRE) was flawless - we captured 100% of all possible revenues for our clients.

After the successful DRE, Richard White, the Director of Public Works for the Town of Fairfield (Connecticut), stated: "The relationship with EnerNOC is proving to be a good partnership. The company was able to obtain the required air permits in time for the Town to participate in the Event. EnerNOC also did the testing and completed the installation of its equipment and the connection to the ISO without a hitch."

Major blackouts, such as the one of historic proportions that occurred in August, highlight the problems that our nation's power grid faces and drive more and more companies, institutions, and municipalities to take proactive steps to protect themselves and the power grid. These events have given and will continue to give a tremendous boost to EnerNOC.

Staffing Updates

Since our last update, we expanded our software team by adding two senior software engineers who will accelerate and enhance the development of our next generation NOC software.

We also continued to build our sales force and are assembling a top-notch team of sales representatives, each focusing on one or more of EnerNOC's key vertical markets. Additionally, we began working with a public relations specialist who has been vital in helping EnerNOC gain public exposure.

Geographic Expansion is Ahead of Schedule

Finally, EnerNOC's staged geographic expansion is ahead of plan. We have already begun to enter the New York market, where a large demand for our products and services exists. In Q4, we intend to become a registered Demand Response Provider and Meter Data Service Provider in New York, and to sign up our first customers there.

For More Information

If you know a customer who could benefit from EnerNOC's products and services, please have them contact our sales group at Sales@EnerNOC.com or DBrewster@EnerNOC.com. Please do not hesitate to get in touch with us if you have any questions or comments at 1-888-ENERNOC.