Stratacon Inc.

Stratacon Inc.

September 08, 2005 09:00 ET

Stratacon Financing Will Help Company Boost Its Role in Ontario's Energy Conservation Efforts

WOODBRIDGE, ONTARIO--(CCNMatthews - Sept. 8, 2005) - Stratacon is pleased to announce that it has reached agreements in principle with Energy Fundamentals Group (EFG) and a Toronto based investment firm to provide the Company with a significant investment in the Company through both financing arrangements and a common equity subscription. Upon closing the contemplated transactions, these funds will allow the Company to meet the growing demand from condominium and apartment building owners for 'smart' sub-metering services. In addition, Stratacon will benefit from the tremendous expertise and knowledge of these parties, particularly in the energy and financing industries.

Energy Fundamentals Group (EFG) is an energy investment firm that makes equity investments and provides advice to clients in the North American energy infrastructure sector. The principals of EFG have extensive experience in the North American energy and investment banking sectors.

"Stratacon is already one of Canada's largest 'smart' sub-metering companies in the apartment and condominium sector. This new partnership will provide us with the financial depth to play a major role in helping the Province of Ontario meet its conservation targets. Since most condominium and apartment suites do not have individual electricity meters, this sector represents one of the Province's biggest opportunities to reduce electricity consumption and promote energy conservation," said Ian Stewart, Stratacon President.

"Sub-metering apartments and condominiums is an efficient, inexpensive and fair way to promote energy conservation. If all condominiums and apartments in Ontario were sub-metered this would reduce the amount of required electricity generation by about 540 MW --- this would go a long way towards reducing the pressure on Ontario's generating capacity. EFG is excited to partner with Stratacon given their experience and understanding of this important sector," said David Santangeli, Managing Director of EFG.

When a building is sub-metered the resident's rent or common area expense is reduced and responsibility for paying for in-suite electricity consumption is transferred directly to the resident. The Stratacon 'smart' sub-meter system monitors electricity consumption by the time of day and posts that information to Stratacon's Internet Web site that is supported by trained customer service personnel. The system gives residents the power to monitor and control their own electricity consumption.

Currently about 85 percent of apartment and condominium buildings (1.8 million suites) use a bulk meter for electricity consumption. The building owner pays the utility bill and electricity is included in the rent or common area expense --- residents have no information about their own consumption and no incentive to conserve. However, once the sub-meters are installed electricity consumption drops by between 15-25 percent. In most buildings sub-metering can be done in less than a day without requiring access to individual units, and residents benefit from the lower bulk meter rates. Many jurisdictions (e.g., Germany) make it mandatory to 'smart' submeter multi-residential buildings.

About Stratacon

Stratacon is a utility management company serving the multi-residential and commercial markets. They provide complete turnkey services including utility analysis, meter installation, online consumption information for consumers, bill presentation and collection, project monitoring and verification. Their customers include Canada's largest property management firms. Stratacon's online billing and reporting platform is operated by ista (www.ista-na.com), a company that provides billing and energy management services to 10 million homes worldwide and nearly 1 million homes in the United States. Using the ista platform Stratacon provides residents and building managers with comprehensive energy consumption information in real time. For more information visit www.stratacon.ca or call the above contacts.

Contact Information

  • Stratacon Inc.
    Ian Stewart
    President
    (905) 856-4001 Ext. 107
    or
    Stratacon Inc.
    Peter Mills
    COO
    (905) 856-4001 Ext. 109
    www.stratacon.ca