Greetings!

The second quarter of 2004 was as fast-paced as ever for EnerNOC. Highlights included signing a multi-million dollar service and sales agreement with Pinpoint Power, becoming a Demand Reserves Provider in California, and adding more talented people to the EnerNOC team.

EnerNOC Inks Agreement with Pinpoint Power

In June, EnerNOC signed a multi-million dollar service and technology sale agreement with Pinpoint Power. Under the terms of the deal, EnerNOC will apply its industry-leading managed services and technology to enable Pinpoint's customers to participate in ISO-NE's Demand Response Program in Southwest Connecticut.

Through PinPoint, EnerNOC now serves a broader base of blue-chip clients, including IBM, Pitney Bowes, and SBC Corporation.

Read the Press Release

New Customer Spotlight: Bradley Memorial Hospital

In May, Bradley Memorial Hospital became the latest non-commercial business customer to join the EnerNOC network. Bradley Memorial registered its backup generators as demand response resources through EnerNOC. The hospital has nearly one megawatt of generation capacity on site, wired to approximately 650 kW of load.

Bradley Memorial is an 84-bed acute care community hospital located in Southington, Connecticut. Southington is in the Southwest corner of Connecticut, identified by ISO-New England as a resource constrained area. Because of its location, customers in Southington are eligible for special compensation through EnerNOC's long-term contract with ISO-NE. Bradley Memorial's capacity is projected to net the hospital several hundred thousand dollars over the next five years as compensation for helping the grid avoid blackouts.

Bradley Memorial joins a growing list of sites in Southington with capacity registered through EnerNOC in Demand Response Programs. EnerNOC customers in Southington and surrounding towns stand to reap substantial benefits under the special terms of EnerNOC's contract for demand response capacity in Southwest Connecticut.

EnerNOC Goes Coastal

EnerNOC recently became a Demand Reserves Provider in the state of California. In June, EnerNOC signed a multi-year agreement with the California Power Authority. Working in conjunction with California Department of Water Resources, EnerNOC is leading an effort to help the state achieve aggressive demand response goals.

The goal is for demand response to constitute 3% of California's peak load in 2005 and 5% by 2007, ultimately representing over 2,000 MW. Working primarily in the commercial and industrial markets, EnerNOC's innovative technologies, commercial offering, and implementation experience are providing significant benefits to all stakeholders, including the independent system operator, investor-owned utilities, and, most importantly, end users. Becoming a DRP provider in California gives EnerNOC a bi-coastal presence, moving the company closer to its goal of serving the entire United States and beyond.

EnerNOC Expands its Technical Arsenal

As the EnerNOC customer base has grown, so has the need to develop varied customer solutions. In the second quarter, for example, EnerNOC accelerated its Price Response offering in response to pull from its customers. EnerNOC now offers both Price Response and Demand Response solutions using a variety of network options. In addition to standard broadband connectivity, these include the following:

• Dial-out solutions
• Wireless solutions (connection to the Internet via satellite)
• DSL solutions
• Within-building wireless solutions (standard 802.11b WiFi and 802.11g)
• Inter-wiring (e.g., powerline) communication

EnerNOC continues its commitment to serve its customers' needs as completely and cost-effectively as possible. Powerline communication, for example, allows EnerNOC to remotely control customers' lighting and reduce lighting loads using existing electrical wiring rather than install expensive and unnecessary new wiring. By continuing to develop innovative technologies, EnerNOC remains at the cutting edge of demand response, cementing its position as the nation's premier full-service demand response provider.

Staffing Updates

The EnerNOC team continues to grow. New hires include a Certified Software Quality Engineer and a Business Development/Marketing Director. These additions will help EnerNOC maintain the highest standard of quality as the company continues to develop and deploy creative customer solutions.