As part of the two-year deal, Comverge will operate Nevada Power's existing 15-MW to 19-MW demand-response system, which comprises thermostats and digital-control units, from 2007 to 2009. Comverge expects to recognize between $25 million and $30 million in revenue from the contract.
Comverge will market the VPC program to Nevada Power's residential and small commercial customers. The load-management system will encourage energy efficiency and help assure energy reliability during times of peak demand, the company said.
The program also will allow Nevada Power to call on capacity that can be dispatched within 10 minutes.
Nevada's renewable portfolio standard allows utilities to use energy-efficiency programs to meet up to 25% of the standard.