by David Flint
The Beacon Power Corporation reports that progress continues to be made on establishing a frequency regulation plant in Stephentown. The New York Independent System Operators Management Committee recently approved the funding for implementation of new market rules specifically designed for energy storage resources to provide regulation service and expects to deploy these market rules by June 2009. A 20 megawatt (MW) interconnection agreement with nationalgrid© for the company’s Stephentown plant is expected in the first quarter of 2009.
Beacon Power is awaiting a decision from the U.S. Department of Energy (DOE) on its application for a loan guarantee to cover up to 75% of the cost of the Stephentown plant. Beacon believes that DOE’s decision on the loan guarantee will be favorable.
For the third quarter of 2008, Beacon Power reported revenue of $4,000 and a net loss of $5,621,000, or ($0.06) per share. The Company reported that a decrease in revenue compared to last year is the result of completion of scale-power development contracts with energy agencies in California and New York, as well as the U.S. Department of Energy in 2007. Beacon Power is now entering the production phase of its flywheel systems. The Company has also begun generating revenue from frequency regulation services.
On November 18, Beacon began earning commercial revenue from its first megawatt of frequency regulation capacity at its site in Tyngsboro, MA, under ISO New England’s Alternative Technologies Regulation Pilot Program.
Beacon had initially expected to have up to five MW in service as of the end of fiscal 2008. However, in response to uncertainty and volatility in the equity markets, the Company decided both to raise less cash in its October sale of shares and warrants than once anticipated and to raise additional funds during early 2009. Consequently, it also decided to revise its deployment schedule. Beacon now expects to deploy an additional 2 MW (for a total of 3 MW) in ISO New England by year end and two additional MW (for a total of 5 MW) in the same location during the first quarter of 2009.