SOURCE: EnergyConnect Group Inc.

EnergyConnect Group Inc.

January 26, 2010 09:00 ET

FERC Distinguishes EnergyConnect in Granting Expanded Authority

EnergyConnect Is the Nation's First Demand Response Provider to Receive Market Based Rate Authorization

SAN JOSE, CA--(Marketwire - January 26, 2010) - EnergyConnect Group Inc. (OTCBB: ECNG), an industry leader in innovative demand response technologies, today announced that it has been granted Market Based Rate Authorization (MBRA) by the Federal Energy Regulatory Commission (FERC) effective August 17, 2009. MBRA allows EnergyConnect to engage in a variety of wholesale market transactions that complement its demand response offerings and expands the range of services it can provide to grid operators, utilities, and commercial, industrial and institutional customers.

"Our objectives in seeking MBRA were to obtain clarity regarding the obligations of demand response providers and ensure that we can provide an expanded range of wholesale services for the benefit of our customers, including the purchase and sale of ancillary services, energy and capacity," said Kevin Evans, EnergyConnect's President and Chief Executive Officer. "Demand response is more than just load drop; our goal is to provide energy consumers with innovative Smart Grid technologies which enable them to benefit from access to wholesale electricity markets."

In its order, FERC determined that demand response activities alone were outside the scope of its jurisdiction as defined by the Federal Power Act, but determined certain transactions which involve the sale of electric energy for resale would be subject to FERC jurisdiction. As a result of the decision, EnergyConnect is now a public utility as defined by Section 201(e) of the Federal Power Act.

FERC noted that "where an entity is only engaged in the provision of demand response services, and makes no sales of electric energy for resale" that entity would not be subject to FERC's jurisdiction. This ruling advances demand response in organized markets by clarifying its definition and refutes the assertion that demand response is a prohibited retail "sale for resale" of electricity activity.

About EnergyConnect Group, Inc.

EnergyConnect delivers industry leading demand response technologies and services to commercial, industrial and institutional energy users enabling them to manage their use of electricity in response to market prices or regional power shortages. The EnergyConnect technology platform provides a scalable, cost-effective, clean technology to enhance the grid's efficiency and reliability. For more information about this leading edge technology or about investor relations, visit:

Forward Looking Statements

This press release includes statements that may constitute "forward-looking" statements. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause or contribute to such differences that include, but are not limited to, competitive factors, the success of new products in the marketplace, dependence upon third-party vendors, and the ability to obtain financing. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

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