With its reliance on demand response and heavy concentration in PJM, EnerNOC has seen its fortunes wax and wane based on decisions made in Valley Forge and Washington. The company cited the following examples in its 10-K disclosures to shareholders:

• The company saw its DR revenues fall in 2011 versus 2010 due in part to lower prices in the PJM, New York and New England markets and fewer demand response events in PJM during the year, which cut energy payments.
• The Federal Energy Regulatory Commission’s February 2012 order accepting a PJM proposal on measuring and verifying DR capacity hurt the company’s revenues and profit margins.
• PJM’s elimination of its Interruptible Load for Reliability (ILR) program last June “reduced the flexibility that we had to manage our portfolio of demand response capacity in the PJM market and impacted our revenues and profit margins.”
• Declining PJM capacity market prices hurt revenues, gross profits and profit margins in 2012. “To the extent we are subject to other similar price reductions in the future, our revenues, gross profits and profit margins could be further negatively impacted.”