Tendril Inc, a privately held maker of energy efficiency systems, is seeking to raise $20 million to help roll out its technology that links utility power systems to consumer-controlled equipment.
The Boulder, Colorado-based company has contracts with Houston's Reliant Energy (RRI.N: Quote, Profile, Research, Stock Buzz) and other electricity suppliers as well as the makers of "smart meters," such a Itron Inc, to provide the service that links price signals from the electricity retailer to households.
Tendril's software systems enable consumers to program the "smart meters" in their homes to reduce consumption from items such as appliances and air conditioners during peak periods of power consumption when energy prices are at their highest levels.
"I think this is the last financing that we are going to need," Tendril Chief Executive Officer Adrian Tuck told Reuters, adding that the company was likely to reach positive cash flow in 2010.
Demand for "smart" power use technology is growing as state electricity regulators and electricity suppliers increase their purchases of equipment designed to boost efficiency and reduce power consumption.
The rising costs of coal and natural gas and the skyrocketing price to build new power plants has pushed power providers to embrace the technology, Tuck said.