August 8, 2006
Power Efficiency Corporation Announces Successful Test of Energy Savings Technology at a World-Renowned Casino Hotel on the Las Vegas Strip
Nevada Power Company Verifies 40% Average Energy Savings as Part of Power Efficiency’s Ongoing Initiative Targeting the Las Vegas Hospitality Industry
LAS VEGAS--(BUSINESS WIRE)---Power Efficiency Corporation (OTCBB: PEFF), a developer and manufacturer of advanced energy savings technologies for electric motors, today announced that it completed successful tests of its Power Efficiency Motor Efficiency Controller™ product on two escalators at one of the most prestigious hotels in the world. The test results were confirmed by Paragon Consulting Services, a consultancy specializing in measurement and verification that was hired on behalf of Nevada Power Company.
The Power Efficiency Motor Efficiency Controller™ soft starts an electric motor, bringing it from rest to full speed. Once it is at full speed, the Power Efficiency Motor Efficiency Controller™ monitors the motor and improves its efficiency when it is wasting energy. By conserving energy, the Power Efficiency Motor Efficiency Controller™ also reduces greenhouse gas emissions.
“Our products performed exceptionally well in a real-world environment, on busy escalators that are part of one of the most prestigious hotels in the world,” said Steven Strasser, Power Efficiency’s Chairman and CEO. “We were also proud to work on the project with Nevada Power Company, the electric utility for Southern Nevada.”
“Energy is becoming an increasingly important economic and environmental concern. Electric motors are at the nexus of these issues. According to the Department of Energy, electric motors consume almost one quarter of the nation’s total electricity and 64% of the electricity used in manufacturing. Many of these motors are operating inefficiently and are therefore candidates for our patented energy saving technology. For example, target applications include not only escalators, but also many types of industrial equipment, such as granulators, mixers, grinders, stamping presses, saws, crushers and more.”
The specific parameters and results of the test include:
• Two escalators, each with 20 horsepower electric motors operated virtually non-stop, 24 hours a day, 7 days a week
• The escalators were measured over two five day periods, one with and one without the Power Efficiency Motor Efficiency Controller™ engaged. The amount of usage over the two comparable periods was then compared and verified by Paragon Consulting Services, a consultant hired on behalf of Nevada Power Company
• The average energy savings on the two escalators was 40.5%, resulting in a total of approximately 23,000 kilowatt hours in savings per year
• Paragon Consulting Services estimated the two Power Efficiency Motor Efficiency Controller™ units will save the hotel over $2,100 a year in energy expenses at today’s electricity rates
About Power Efficiency Corporation
Power Efficiency Corporation designs and manufactures the Power Efficiency Motor Efficiency Controller™, a product that reduces the amount of energy used by electric motors in many constant speed/variable load applications. These motors are found in escalators, elevators, grinders, granulators, mixers, saw mills and many other applications. The Power Efficiency Motor Efficiency Controller™ allocates power in direct proportion to the motor's required workload, eliminating wasted electricity. The company's core technology is based on patented improvements to NASA technology. Energy savings from these controllers are typically 20-40%. The controllers also reduce the operating heat of the motor, producing significant motor life extension and downtime reduction benefits. PEC products are UL compliant and CE and CSA certified. The Company also has a prototype unit applicable to single-phase electric motors that are found in applications such as clothes dryers, refrigerators, vending machines, mixers and coffee grinders. For more information visit www.powerefficiencycorp.com.
As a cautionary note to investors, certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's product in the market; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; and all the risks and related information described from time to time in the Company's SEC filings, including the financial statements and related information contained in the Company’s 2005 Annual Report. Power Efficiency assumes no obligation to update the information in this release.
Contact:
Power Efficiency Corporation
B.J. Lackland, 702-697-0377
Chief Financial Officer
blackland@powerefficiencycorp.com
