ELK GROVE VILLAGE, Ill., Aug. 5, 2002 — Electric City Corp. announced recently that it signed an energy services contract with The Great Atlantic and Pacific Tea Company (more commonly known as A&P Food Stores) to move forward with an estimated $12 million EnergySaver project focused on approximately 540 stores.
The stores are primarily located in New York, New Jersey and other areas of the East Coast where energy rates are continuing to rise. The project is expected to generate immediate positive cash flow to A&P.
“We are pleased with A&P’s decision to move forward with an ambitious program to save energy across their operation using our EnergySaver and GlobalCommandersystems,” stated John Mitola, CEO of Electric City.
“We believe that their decision was based on the combination of demonstrated success of our EnergySaver technology at initial sites along with our innovative shared savings and lease financing solutions. With this project, A&P will be saving a significant amount of steady-state energy and will have the ability to participate in real-time, power curtailment programs across their territories. This is what we call Virtual Negawatt Power systems or VNPP.”
The project plans call for a significant number of installations before the end of 2002, saving an equivalent amount of energy to power approximately 3,500 homes. The final project cost is estimated to approach $12 million and will vary based on final store selection and timing of implementation. Each phase of the project is subject to the completion of specific financing arrangements acceptable to each party involved.
“This project represents the first of what we believe will be several, large-scale, shared savings/operating lease/VNPP projects which we are currently negotiating,” stated David Limanowski, president of Electric City of New Jersey and manager of the project for Electric City. “The combination of the EnergySaver system with GlobalCommander controls and Electric City’s shared savings and lease programs is extremely powerful in recently’s energy marketplace. We believe that the New Jersey and New York areas represent significant opportunities for growth.”
Lighting accounts for a large percentage of a stores’ energy consumption and operating costs, making Electric City’s EnergySaver technology an ideal system to help retail chains reduce energy use on a broad scale Furthermore, Electric City’s ‘smart,’ remotely controllable, automatic lighting control system easily enables participation in power curtailment programs that can save additional operating costs.”
Since last year, Electric City has been focused on the introduction of their Shared Savings services, lease solutions and Virtual “Negawatt” Power Plant programs. These programs allow Electric City to provide EnergySaver and GlobalCommander technology to customers with no up-front cost.
“Our sales strategy is very simple – sell customers their initial system, allow them to experience the sound performance of the EnergySaver and then discuss ways in which we can expand the technology across their facilities,” noted Mitola. “We believe that this agreement with A&P, and projects like the ones we are executing with Toyota, Life Time Fitness and CalState University, represent the tip of the iceberg when it comes to our ability to put together scalable projects with our larger end-users.”
About Electric City
Electric City is a developer, manufacturer and integrator of energy savings technologies and custom electric switchgear and building automation systems. The Company currently markets the EnergySaver(tm), the GlobalCommanderand LightMasterenergy conservation technologies, as well as its proprietary Total Primary Power Package (TP3) switchgear and a full line of Building Automation Systems. Electric City is based in Elk Grove Village, Illinois and is traded on The American Stock Exchange under the symbol ELC. Additional information is available at the Company’s website at www.elccorp.com or by calling 847-437-1666.