Johnson Controls Enters Smart Grid Demand Response Industry

Johnson Controls JCI recently entered the smart grid demand response industry through its acquisition of EnergyConnect Group Inc. ECNG. The acquisition will enable the company to help building owners and operators manage how much energy their buildings consume and when the energy is consumed.

Johnson Controls JCI, a global leader in delivering solutions that increase energy efficiency in buildings, has completed the previously announced acquisition of EnergyConnect Group, Inc., a leading provider of smart grid demand response services and technologies. The acquisition was completed on July, 1, 2011.

The acquisition enables Johnson Controls to help building owners and operators manage how much energy their buildings consume and when the energy is consumed – a critical feature of connecting smart buildings to the smart grid.

“One of our strategies at Johnson Controls Building Efficiency is to play a significant role in the growing market for demand response services by enabling smart buildings to interface seamlessly into the grid,” said Dave Myers, vice president of Johnson Controls and president of the company's Building Efficiency business. “With the acquisition of EnergyConnect, Johnson Controls now combines the power of building automation systems with an intuitive technology platform that provides our customers the ability to take action to capture demand response opportunities.  This creates a new level of building intelligence.”

Demand response refers to changes in electricity usage for buildings based on capacity, price or reliability signals from the electric grid.  EnergyConnect's demand response technology and service platform provides energy managers and facility operators real-time energy information and access to energy markets, enabling them to manage their energy usage.  EnergyConnect's GridConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid's efficiency and reliability.

“Johnson Controls recognized the benefits of EnergyConnect's leadership in demand response technology,” said Kevin R. Evans, former president and Chief Executive Officer of EnergyConnect. “We have experienced outstanding growth and customer adoption since the launch of our award-winning GridConnect platform last year. Through the Johnson Controls acquisition, we are now positioned to extend this reach to a significantly larger customer base and accelerate the transformation of energy use in response to market prices while enhancing grid reliability.”

Evans will continue to lead the EnergyConnect team as vice president and general manager for Demand Response Services for Johnson Controls Building Efficiency.

The EnergyConnect acquisition enhances Johnson Controls' Building Efficiency business as a demand response leader in the large commercial, industrial and institutional markets. Johnson Controls helps its customers reduce energy and operational costs by providing building management solutions. The additional products and services from EnergyConnect broaden Johnson Controls' portfolio of energy solutions offerings.

About Johnson Controls

Johnson Controls is a global diversified technology and industrial leader serving customers in more than 150 countries. Our 142,000 employees create quality products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles; and interior systems for automobiles. Our commitment to sustainability dates back to our roots in 1885, with the invention of the first electric room thermostat. Through our growth strategies and by increasing market share we are committed to delivering value to shareholders and making our customers successful.  In 2011, Corporate Responsibility Magazine recognized Johnson Controls as the #1 company in its annual “100 Best Corporate Citizens” list. For additional information, please visit http://www.johnsoncontrols.com.