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Power Efficiency Corp. (PREF) |
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CEOCFO Current
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Power Efficiency Corp’s
controllers automatically adjust the power to meet the load requirements of electric
motors providing energy savings and cooler operating temperatures extending motor life Power Efficiency Corp. (PREF-OTC) is a leader in
providing proprietary energy management technology solutions. The Power Efficiency
Performance Controller enables AC induction motors to perform at their optimum efficiency
without affecting speed. Cost of operation in these motors can be reduced by 10% to 40%.
The concept behind the Performance Controller was originally proposed and developed by
Frank Nola of the National Aeronautics and Space Administration ("NASA") in the
mid to late 1970's as a means of reducing energy waste on AC Induction motors. The
technology was designed to monitor the power factor of the motor, and to reduce the
voltage and current when the power factor is dropping. In the early part of 1998, NASA
announced that Power Efficiency Corporation had been named the exclusive domestic licensee
of NASA's patented technology relating to energy saving motor controllers, listed under
the "power factor controllers" category of patents. “Our
strategy is to identify the applications, where our technology provides the maximum energy
savings, explains Mr. Richard Koch, President and CEO
of Power Efficiency Corporation. “We first measure the
power used by a motor without our controller and then run the same application with our
controller installed. Customers can see the savings. Testing has shown that
escalators and elevators are a perfect application. We manufacture private label
controllers for OTIS, KONE and SCHINDLER in this sector. Successful test results on
granulators used in the plastic industry have led to the recently announced marketing
arrangement and joint venture with Rapid Granulator a leading manufacturer of granulators.
Our preliminary tests on oil and gas pump jacks have been very encouraging. We
identified this application for testing because pump jacks are fully loaded only on the up
stroke. After we prove our technology in a sector we focus are sales efforts in high
energy areas maximizing our customers’ ROI. Many states with high electricity costs
provide incentives and rebates that help offset the cost of our controllers further
increasing customers’ ROI.” Commenting on the timing of their
market efforts, Mr. Koch tells us, “I feel the time is right for a marketing push because energy prices
are rising. Natural gas prices are extremely high as evidenced by the recent suggestion by
Federal Reserve Chairman Greenspan that the country might have to consider relaxing some
of the environmental restriction to allow exploration in protected areas. Most of the new
electricity generating plants use natural gas as the fuel because it is non-polluting, but
now it seems the supply projections relied on when these plants were built might have been
optimistic. The higher the energy costs, the quicker the payback is to the customer who
buys our controller. You do not buy an energy saving device that is going to take you
twenty years to save the energy to pay for the product. We will be focusing on those
states and countries that have the highest cost of power because then payback and return
on the customers’ investment in our product are that much higher.”
For potential investors, Mr. Koch offers, “Most investors are not aware of our products because of our focus on
OEM relationships with Otis, KONE and Schindler. They are the leading companies in the
elevator/escalator field, where safety is a premium. The technology is working in this
extremely sensitive environment, if our controller does not work, people could get hurt.
Our current expansion into industrial applications will result in much faster sales as the
product development cycle is much shorter because the multiple product changes to insure
safety are not as complex. The company has focused on R&D rather than marketing and
sales. We have now begun the process of building the sales and marketing strengths needed
to bring power Efficiency to profitability” The single-phase Performance
Controller is available up to 15 amps from 120 to 240 volts. The three-phase Performance
Controller is available from 1hp to 300hp from 208 to 575 volts, 50 Hz or 60Hz. The
Performance Controller is designed to be used in conjunction with a standard
across-the-line starter and should be viewed as a new generation of motor controllers that
manage energy use according to workload. The Performance Controller controls the AC
Induction Motor so it always functions at its optimum efficiency. This increased
efficiency extends motor life and reduces stress and strain on the motor and the drive
train, both electrically and mechanically. The Performance Controller also protects
the motor against over and under voltage conditions. All of these functions are performed
automatically and electronically. State-of-the-art electronic circuits constantly sense
the workload of the motor. When the actual workload of the motor is lower than the rated
load, the sensing circuits reduce the energy being fed to the motor to the exact level the
motor needs. This has the effect of reducing motor energy consumption. Power Efficiency
Corp’s mission statement is to be a world leader in providing proprietary energy
management technology solutions to assist their customers in preserving their resources. |
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