EnergyConnect Applauds FERC's Ruling on Demand Response Compensation

March 16, 2011

Tools

Landmark ruling to provide customers with access to market prices for demand response

SAN JOSE, Calif.--(BUSINESS WIRE)-- EnergyConnect Inc. (OTCBB: ECNG), a leading provider of smart grid demand response services and technologies, commends the Federal Energy Regulatory Commission (FERC) on its Order 745 ruling. The move puts into place an approach that provides compensation comparable to traditional generation sources and removes barriers to participation of demand response resources in organized energy markets.

In organized markets, generation output is compensated at the full spot price, usually referred to as the Locational Marginal Price (LMP). Until now, compensation for customers that reduced load differed widely between organized markets. The new rule will compensate demand response customers at the full LMP for reductions that benefit all customers, and will drive consistency across all organized markets.

“This landmark decision is just the motivation needed to transform the market and empower customers, clearly validating EnergyConnect’s commitment and leadership in price-responsive demand,” said Kevin R. Evans, President and CEO, EnergyConnect. “All customers will benefit as they qualify for significantly increased demand response participation and earnings opportunities. We applaud FERC’s leadership in underscoring the importance of proper compensation to incentivize price-based participation.”

Regardless of a customer’s electricity supply arrangement, the FERC decision opens the market for more active participation in price-responsive demand strategies. Once the ruling takes effect, customers gain greater flexibility and control to shift or curtail load when it makes the most sense within the context of their business or operational constraints. This translates into greater earnings opportunities for subscribers of EnergyConnect’s award-winning GridConnect™ integrated demand response platform, while enabling more efficient use of electricity, lower prices, and a more reliable grid.

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.

About EnergyConnect

EnergyConnect delivers industry-leading Demand Response technologies and services to commercial, institutional and industrial consumers, enabling them to manage their use of electricity in response to market prices or regional power shortages. EnergyConnect’s GridConnect 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 www.energyconnectinc.com.

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