Interview with: Michael Forster, Founder, President, CEO and Director - featuring: their Power-Save 1200™ product that when attached to the house, can save the homeowner up to 25% on their electric bill, by taking the electricity from the grid, cleaning, streamlining and delivering it to the motors in your house such as the refrigerators, freezers, ceiling fans, garage door openers, ovens, washers, driers, dishwashers.

Power-Save Energy Corporation (PWVG.PK)

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Power-Save Energy is offering a product that could reduce the electric bill for over 100 million households in the United States


Power-Save Energy Corporation

3940-7 Broad St. #200
San Luis Obispo, CA 93401
Phone: 866-297-7192

Michael Forster
Founder, President
CEO and Director

Interview conducted by:
Lynn Fosse, Senior Editor
May 18, 2006

Michael Forster | Founder, President, CEO, Director

Mr. Forster is an experienced entrepreneur in all facets of business. He has organized and executed the start-up of companies. He has worked under contract in both the private and public company sectors to affect corporate and financial restructuring. As well, Mr. Forster has held senior management level positions at a Fortune 500 company.

Mr. Forster holds a Bachelor of Science Degree in Aeronautical Engineering from California Polytechnic State University.

Company Profile:
Power-Save Energy Corp. is a marketing company dedicated to the mass-market sale of energy saving products for homeowners. We intend to market quality, tested products and to continue to seek out and offer innovative new energy saving products to the consumer.

Power-Save Energy Corp. is utilizing the power of television to market the products. Our products will be sold via targeted DRTV (direct response television commercial) to consumers. Power-Save Energy Corp. will market the KVAR PU-1200 via a DRTV television commercial throughout 2006. The KVAR PU-1200 product is intended to reduce homeowner’s electricity consumption and therefore reduce their monthly electric utility bill. In previous installations, some homeowners have enjoyed monthly savings of up to 25% on their home electric utility bill.

CEOCFO: Mr. Forster, what was your vision for Power-Save and how has that developed?
Mr. Forster: “A little over a year ago I followed natural gas prices aggressively. From my past and previous work experience, I realized the coupling between natural gas and electricity, and realized it was only a matter of time before electricity was going to start climbing in every state. I set out on a pursuit to find devices that could be attached to the house that could save the homeowners money. I hired an attorney to go to the National Patent office and review the patent books to find new energy saving home products that have been commercialized and can be used and enjoyed by the homeowner. After contacting many different people with their own patents, ideas or actual products, I came across several that I pursued; one of them was an inventor out of Florida who created the product that we now sell; the Power-Save 1200™. This product, when attached to the house, can save the homeowner up to 25% on their electric bill. It was patented, tested proven, and it was even available commercially. The problem was, the gentleman didn’t enjoy high electricity prices, so therefore, the product didn’t sell well over the decade, but he tried to market and sell it. It is only recently that electricity prices have come into the news; they are very expensive. The television commercial featuring the product; it is timely, people are interested in it, and therefore that is how we are going to sell it.”

CEOCFO: What is the cost of the product?
Mr. Forster: “It retails on television for $297.00 plus shipping and handling. If you buy it through the television commercial by calling our 1-800 962 3076 number, we offer a payment program of three easy payments of $99.”

CEOCFO: Will you tell us how your product works?
Mr. Forster: The Power-Save 1200™ Unit increases power factor, by reducing the amount of reactive power (KVAR) that the load draws from the utility company. Power-Save 1200™ Units store the reactive power (kvar) needed for the creation of the EMF within the inductive load. As the motor operates, this reactive power is "pulled" and "pushed" to and from the Power-Save 1200™ Unit by the motor. The amount of reactive power purchased from the utility company by power factor optimization has been greatly reduced, or eliminated.

The technology applied by the Power-Save 1200™ Unit reclaims, stores and supplies power to inductive motors and loads. This process provides the reactive power (kvar) required to establish the electromagnetic field (EMF) around the inductive windings of a motor, while reclaiming and recycling the power during the normal working phase. The power reclaimed and recycled by the Power-Save 1200™ Unit would normally be pushed back through the power distribution lines.

In layman’s terms, if you view electricity like fuel, and we use the example like your car, when you pull into a service station, you have three choices of fuel; high octane, medium and low. If your car is required to use the high octane, but you always use the inexpensive stuff, you will notice that your car doesn’t get the same gas mileage, it runs hotter, and runs less efficiently. Therefore, the analogy is, if you put dirty fuel, the incorrect or inefficient fuel into a perfectly good car, the car operates inefficiently. It uses more fuel to get the same job done; it runs hotter, etc. If you take that understanding and apply it to electricity, if you apply dirty or inefficient electricity to a perfectly good electric motor, the motor will run hot and inefficiently. You will use more electricity than was needed. The Power-Save 1200™ unit, takes the electricity from the grid, cleans it, modifies it, streamlines it, delivers it to the motors in your house such as the refrigerators, freezers, ceiling fans, garage door openers, ovens, washers, driers, dishwashers; it goes on and on. It takes the electricity, cleans it, and provides perfect electricity for each motor so that each motor runs at its optimal efficiency. It also gathers loose electricity in the house and stores it. Every time a motor like a refrigerator clicks on for another cycle, it actually electrifies the magnetic field and gets the motor started. This is how it saves electricity for the household.”

CEOCFO: How is it attached?
Mr. Forster: “It is a very simple installation process. Our Power-Save 1200™ is a little box only six inches by six inches by four inches. It installs next to the breaker panel either outside or next to the sub panel, which is usually from the basement of some homes. You attach it to the wall, snake the conduit and the three wires into your breaker panel; you turn the main breaker panel switch off. The three wires attach to a new 15 amps breaker and the ground bar, it snaps into the breaker panel, you put the cover back on and turn the main breaker back on and it is operating.”

CEOCFO: Does this work for electric heat?
Mr. Forster: “Yes, and if you have a forced air gas heater that is turning a fan that forces heated air throughout the house, it saves you there also. Our Power-Save 1200™ saves money on your air conditioner, forced air gas heater, dishwasher, washer, dryer, ceiling fan, oven exhaust fan, pool pump, spa pump, computer cooling fans, garage door opener and the list goes on.”

CEOCFO: What do the electric companies have to say about this?
Mr. Forster: “The unit is UL (Underwriters Laboratories, Inc.) listed, ENERGY STARŪ (a government-backed program for protecting the environment through superior energy efficiency) recognized, so it meets or exceeds all requirements in the U.S. and Canada because it is CSA (Certified Products Listings) listed as well. It meets or exceeds all the requirements to be viewed as an appliance and it is an appliance that is legally allowed to be attached to the home. Our unit attaches to the breaker panel on the homeowners side of the meter. Therefore, the electric companies view it as just an appliance. It is no different in their opinion than a lamp fixture or a refrigerator. It is UL listed, it meets or exceeds requirements, it has been tested, therefore it is safe to use. Attaching on the home owners side of the panel; it causes no issue with any utility company.”

CEOCFO: Has the public been receptive?
Mr. Forster: “We have run a test television commercial; 120 second short form DRTV commercial nationally. The response was very strong and it made us understand that we had a product, that if we got the formula right, we were going to be able to sell to consumers quite aggressively. After the initial test, we went back to the drawing board to reedit the commercial and change the process. What we needed to do was build from a direct sale; three payments of $99, call now, would be considered a direct sale, to more of a two-step process. Everyone has seen these commercials that say call now for more information; that is more of a two-step process. You then get everybody who is interested in the device and saving money on their electric bill, to call or go to our website and request additional information. This is what we are changing our campaign to, to dramatically increase the number of leads and drastically lower the cost per lead. Once they have received the package or the information, we believe based on experience a large percentage of the individuals will be converted to sales. We anticipate that this conversion will continue to stay strong, so therefore what we need to do is drive an even lower cost per lead or an even more leads for every advertising dollar spent. That is what we are doing.”

CEOCFO: Why is direct marketing the best way to go for you?
Mr. Forster: “It is a function of the times. Three years ago when our electricity prices were low, nobody would have taken five minutes of attention to our Power-Save 1200™, with respect to a television commercial. The reality is everybody’s electric bills are going up. Every newspaper in the country are carrying stories of the local electrical company requesting an increase in the electric utility rate and the PUCs (Public Utilities Commission) granting them. It is on the forefront of everybody’s mind at least once a month if not daily. For example, just the other day, Baltimore announced a 72% increase in their electric prices starting June 1st (2006) for all the residents of Baltimore. Across the country there is one local television news cast almost every day if not multiple times a day. The approach is to take a product that is prices in the comfort zone of  a typical consumer or home owner, let them know that this product exists through mass marketing, and give them an opportunity to hear the message two, three or four times, and react to it. We feel strongly that there are over 100 million households in the U.S., and our product belongs in every single one of them. It is NASA (National Aeronautics and Space Association) tested, Honeywell International, Inc. (NYSE: HON) tested, UL listed, ENERGY STARŪ recognized. It has all the credentials. It has been out there for years. We have testimonial letters coming out our ears and frankly, we believe it is the product of the times.”

CEOCFO: How are you funded for the start-up phase?
Mr. Forster: “I am the president and CEO, and I am an 80% shareholder in the company. I actually funded a majority of the money to begin the venture,   and take us, in my opinion, through to profitability; that is the plan. I have enough money where I believe we can get through the testing phase, get the commercial correct and begin to market this aggressively, by using national television.”

CEOCFO: Do you have additional products in the pipeline?
Mr. Forster: “Yes, we have announced a second product, which is a replacement bulb for low-voltage landscape lighting. We actually have a replacement bulb that is an LED (Light Emitting Diode) bulb, which uses only 10% of the electricity as the normal incandescent bulb. More importantly, it lasts 50,000 hours. The consumer saves money on the electricity, and they save an enormous amount of money on bulb replacement. Bulb replacement is the biggest problem with these low voltage landscape lighting. This is a fantastic product; it has already been released and we are looking forward to begin running direct response television commercials for it in the future as well. We are also looking on additional products that we have not released yet.”

CEOCFO: Although you are 80% owner, do you look to reach the investment community?
Mr. Forster: “Of course we are. This will take a series of steps to get this company into a very large marketing and sales company. An example is BOWFLEX (Nautilus, Inc. – NYSE: NLS); there is not an American in this country that has not heard of the BOWFLEX. They were at one point in their life cycle, a one-product company that used mass-market DRTV television direct response commercials to market their one product. They are still on the television today; you can see a BOWFLEX commercial almost everyday. They have come out with additional products, but they have grown and grown. Frankly, that is the model I would aspire to, and get some legs underneath us with this product, and continue to pound the television viewers with our commercials and products, and continue to grow this company. That will take possibly additional investment capital and when that time comes, I hope that through efforts like our interview with you, we will have reached the investment community and have grown and matured the company.”

CEOCFO: What should potential investors realize about Power Save that they is often overlooked?
Mr. Forster: “The product is a strong product for the times. The product works, there have been plenty of tests and testimonials. It is not a gimmicky little product, but an industrial product that has been proven in industrial and residential applications for years. It is patented, UL listed, ENERGY STARŪ recognized, and it meets, exceeds and holds all the credentials. It is a matter of is the time right, and the reality of that is yes! The only challenge at this point is to get the formula right for the mass-market merchandising on television advertising. I think we are well down the path there and we will achieve success in that area. Therefore, I think we have solved all the problems.”


Any reproduction or further distribution of this article without the express written consent of is prohibited.

“We feel strongly that there are over 100 million households in the U.S., and our product belongs in every single one of them. It is NASA (National Aeronautics and Space Association) tested, Honeywell International, Inc. (NYSE: HON) tested, UL listed, ENERGY STARŪ recognized. It has all the credentials. It has been out there for years. We have testimonial letters coming out our ears and frankly, we believe it is the product of the times.” - Michael Forster does not purchase or make
recommendation on stocks based on the interviews published.