Jan. 6 (Bloomberg) -- Enernoc Inc., a company that helps utilities reduce power demand during peak hours, dropped the most in almost two months on concerns that rule changes may cut its sales and profit margins.
Enernoc sank 9 percent to $9.42 at the close in New York, the biggest decline since Nov. 9. Enernoc, based in Boston, has dropped 63 percent in the past year.
Enernoc is paid by utilities to acquire large power users as clients and also for the amount by which it reduces their consumption of electricity.
PJM Interconnection LLC, which operates the largest U.S. power grid, issued yesterday a proposal to the Federal Energy Regulatory Commission that may eliminate these double payments for Enernoc’s demand-reduction services.
The proposed rule, which would require FERC approval, may reduce sales from Enernoc’s largest market, said Carter Shoop, an analyst at KeyBanc Capital Markets Inc. in San Francisco.
“It shows that PJM is playing hardball,” Shoop said yesterday in a note to clients. “If the FERC were to accept PJM’s proposal, Enernoc’s sales and/or margins will be adversely affected.”
Enernoc didn’t immediately reply to phone calls.
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