The future contracted revenues signifies Comverge’s estimate of total payments that it currently anticipates to receive in connection with providing demand response and energy efficiency solutions to utilities and grid operators under long-term contracts and pursuant to open market bidding programs. Regulatory approval is pending on contracts that total about 25% of the future contracted revenue referenced in this release.
At the time of Comverge’s initial public offering less than two years ago, our future contracted revenues were $201 million. Signing new long term contracts over the past two years has allowed Comverge to increase future contracted revenues by a net amount of more than $300 million, or 150%. As we have frequently stated, a large future contracted revenue base provides visibility to future operating performance and growth and it is one of the three key metrics that our management team and Board of Directors focus on in driving long-term value creation for our shareholders, said Robert M. Chiste, chairman, president and chief executive officer of Comverge.
We believe our utility customers recognize the value of energy efficiency and demand management in building a smarter electricity grid to attain a more reliable, independent and clean energy future, continued Chiste. With half a billion dollars of future contracted revenue and what we believe is a strong pipeline of future projects, we are positioned to continue executing on growing our three long-term value creation metrics of megawatts owned under long-term contracts, megawatts sold in open market programs and future estimated payments from long-term contracts.
