Powerit fills demand-response niche

Powerit's Spara EMS system targets industrial efficiency

After an especially hot day caused one of its two main breakers to conk out, frozen and packaged food company Amy’s Kitchen sought a way to avert such a problem in the future.

To manage its power consumption, Petaluma, Calif.–based Amy’s turned to Powerit, a Seattle-based company that targets industrial energy management. Powerit’s hardware- and software-based systems monitor energy use, automatically adjusting power consumption in anticipation of demand peaks based on pre-set guidelines.

By adopting Powerit’s energy management technology, Amy’s will both reduce its power consumption and potentially earn revenue by participating in Pacific Gas and Electric’s (NYSE: PCG) automatic demand-response program, according to Powerit’s president and general manager Bob Zak. For signing up for the program, Amy’s received a rebate from PG&E for almost 90 percent of the total cost of installing Powerit’s system. In a simulated demand-response event, Amy’s reduced its power consumption by more than 40 percent.

In May 2009, Powerit closed a $6 million Series B funding round from Siemens Venture Capital and global steel company ArcelorMittal’s Clean Technology Fund, making it one of several companies targeting energy efficiency to get a dose of venture dollars in otherwise lean times.

Powerit is ramping up to offer real-time pricing solutions, as utilities increasingly set variable rate schedules based on the fluctuating cost of power, Zak says.