Company Awarded Contract to Aggregate up to 3.2 Million kWh of Electricity

Power Efficiency Corporation, a green energy company focused on efficiency technologies for electric motors, announced today that a major California utility has awarded the Company a contract to aggregate up to 3.2 million kWh of electricity in the utility's service territory.

The efficiency aggregation contract, much like other efficiency financing measures, is designed to promote the purchase and installation of efficiency equipment such as Power Efficiency's motor efficiency controller (MEC) with E-Save Technology(TM). Under the terms of this specific aggregation contract, the utility pays Power Efficiency, as opposed to the customer, a set rate per kWh of energy saved in the first year of operation of the MEC. The rate per kWh is competitive with prevailing electricity rates in California. This incentive financing enables Power Efficiency to competitively price the MEC to customers, resulting in improved rates of return and paybacks for customers.

Potential applications for the MEC under the aggregation contract include escalators, crushers, granulators and other industrial applications with constant speed motors running at less than full load.

“We are very pleased to be awarded this contract and to be working closely with another major utility to improve the energy efficiency of their customers. Programs such as this one benefit rate payers, the utility and the environment. Furthermore, it will assist our sales efforts. Energy efficiency is the greenest and frequently the most economical 'source' of energy, and we see more and more utilities and potential customers turning toward efficiency measures,” said Steve Strasser, Chairman and CEO of Power Efficiency.

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