Comverge and Constellation today finalized the merger of their commercial and industrial (C&I) demand response businesses, creating one of the largest DR companies in North America.
H.I.G. Capital, a middle-market private equity firm and the current owner of Comverge, will hold a majority ownership interest in the new company, called CPower. Constellation will retain a minority ownership. John Horto, former Comverge chief financial officer will serve as president and CEO of CPower.
Existing demand response customers of Comverge and Constellation will experience no disruption to service as a result of the combination, and all existing customer and partner relationships will continue.
“Demand response is a proven resource that helps contribute to a more reliable grid, and we are significantly increasing our investment in this business to make sure we remain a strong force in the industry and continue to exceed our customers’ expectations,” said Horton. “The leaders of CPower have helped thousands of C&I customers optimize their participation in demand response programs, providing them with a new source of revenue that can have a significant impact on their bottom line.”
Constellation will continue to promote demand response services to its power and gas customers through CPower.
“We believe the increased focus of the new company will enable CPower to meet increasing technical demands and respond to changing market conditions to provide the best possible service for our customers,” said Mark Huston, President, Constellation Retail. “Constellation will continue to promote demand response products to our customers to support a holistic energy strategy through CPower.”
Comverge will now focus exclusively on utility demand response, energy efficiency, and customer engagement programs targeting residential and small business customers.
The name CPower was selected for the new business because of its strong history in the demand response business.