Power Efficiency Corp and Evaporcool Solutions Sign a Strategic Alliance Agreement

Greenvale, NY, June 15, 2017 --(PR.com)-- Power Efficiency Corporation (OTC PINK: PEFF) (“PEC” or “the Company”) announced that it has signed a strategic alliance agreement with Evaporcool Solutions, LLC, Memphis, TN, ("Evaporcool") to expand sales of Evaporcool’s proprietary equipment in the Northeast U.S.

PEC will have exclusive rights to market, sell, and install Evaporcool’s air-cooled chiller enhancement systems to lower peak energy usage in commercial buildings in New Jersey, New York and the six New England states. The agreement is for a two-year term but may be terminated after 12 months by Evaporcool if minimum sales targets are not satisfied.

Scott Caputo, PEC’s President and COO, stated, “We are pleased to close this transaction and appreciate the strong support of the Evaporcool team. We anticipate that Evaporcool’s systems will allow us to bring more value to our commercial real estate partners and utility customers. We have selected Longo Electrical Mechanical, Inc, Wharton, NJ, to be our installation contractor and to also serve their network of commercial customers.”

Joseph Longo, Longo Electric Mechanical CEO stated, “We see this as a tremendous opportunity to leverage existing relationships to further our position as the market leader in services to the commercial real estate industry.”

Evaporcool Solutions, LLC is a leading-edge developer of HVAC commercial technology. Founded over 10 years ago, the company has developed into the market leader in evaporative precooling systems. In 2014, Evaporcool was selected to provide the largest energy efficiency contract, a 72-megawatt reduction, for Southern California Edison by addressing peak HVAC usage across Southern California. Ben Taube, Senior VP of Corporate Development at Evaporcool said, “We recognize the value of a partnership with PEC to address the market in the Northeast and are aligned to provide energy reductions to commercial owners to help them reduce peak energy costs as well as increase the reliability of HVAC systems.”

About Evaporcool
Evaporcool Solutions, LLC ("Evaporcool") manufactures the Evaporcool® System, a proprietary aftermarket HVAC retrofit that significantly improves the energy efficiency of air conditioning and refrigeration systems. The company is based in Memphis, TN and was founded in 2004. The leading edge Evaporcool® System attaches non-invasively to virtually any air-cooled HVAC unit, and using the principle of evaporative cooling, improves efficiency, reduces peak demand, and lowers maintenance costs. Evaporcool also provides a performance monitoring system, which enables real-time, cloud-based measurement and verification, controls, and fault detection and diagnostics. To learn more, visit www.evaporcool.com.

About Power Efficiency Corporation
Power Efficiency Corporation (PEC) is a start-up venture which intends to become a comprehensive one-stop solution to address grid stability problems in the energy market and take advantage of the large and actively growing market opportunity for energy storage and demand management. PEC offers solutions to grid operators, utilities, and Commercial and Industrial (C&I) customers. Our focus is on renewable Distributed Energy Resources (DER) and Battery Energy Storage Systems (BESS) for grid balancing services to the Independent System Operators (ISOs); load shifting for utilities; energy management through storage and standby generator input for C&I customers; and micro grids for energy security. We intend to build or own or partner with third parties on energy related projects, partner with existing grid participants to take advantage of demand management programs, enter joint ventures and operate electric energy facilities to develop a portfolio of income producing projects.

Forward-Looking Statements
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these forward-looking statements represent our judgments and future expectations concerning our business, several risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: difficult economic conditions, the possibility of increased or adverse government regulation, and the risk that we may be unable to obtain necessary capital investment and financing to install generator and battery storage systems and otherwise complete projects, and other risks and uncertainties. As a result, these forward-looking statements may turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Power Efficiency Corporation to be materially different from the statements made herein.

Contact Information
Contact
Power Efficiency Corp.
Scott Caputo
President and COO
info@peffcorp.com

Power Efficiency Corporation Updates Progress with Con Edison BQDM Program and Form 10 filing

GREENVALE, NY--(PR Newswire – October 177, 2016) - Power Efficiency Corporation (OTC PINK: PEFF), has previously announced that it had participated in the Brooklyn Queens Demand Management Auction (BQDM), held by Con Edison, Inc. July 27 - 28, 2016 and won a bid to provide 12 Megawatts (MW) of Demand Response Energy in the summer months of 2017 and 2018.

 

Also as previously announced, participants in the Consolidated Edison program are required to enter into certain contractual agreements with Consolidated Edison which set forth the parameters of the demand reduction requirements which will be accepted by Consolidated Edison, and Power Efficiency Corporation, as with all participants, was required to deliver a standby letter of credit to support its contract with Consolidated Edison.

 

Power Efficiency has entered into a formal agreement and arrangement with a project and financial partner, a newly formed special purpose vehicle which has provided approximately half of the required $793,000 of funds to back the issuance of the letter of credit in favor of Consolidated Edison.  Power Efficiency Corporation raised the remaining half with funds obtained in a private placement offering of notes and shares of common stock, and certain management members participated in the funding.  As a result, the requirements for the letter of credit under the contract with Consolidated Edison have been satisfied and Power Efficiency Corporation is working with its partner to identify sites and procure equipment to satisfy the 2017 BDQM contract requirements.

 

Under the agreement, the financial and project partner agreed to provide a credit facility of up to $15,000,000 to support purchase of equipment and installation of the equipment at sites. The parties have agreed that performance of the contract with Consolidated Edison and project development will be made through the special purpose vehicle entity.  Power Efficiency Corporation is an economic participant in the revenue and income of the spv and not an equity owner of the spv.  

 

Power Efficiency Corporation assigned its rights under the Consolidated Edison contract to the spv entity. In consideration for assigning the BQDR BQDM contract to the spv, Power Efficiency will be entitled to a funding fee or success fee of 5% of funds lent to the special purpose vehicle based on program costs to install equipment and 30% of the projects combined EBITDA basis, after the financial and project partner’s receipt of repayment of funds and a rate of return of 20% of funds lent and expenses incurred provided to procure and install equipment and operate each project and fund one-half of the letter of credit.

 

Funding of particular projects under the BDQM program is subject to various closing conditions, including completion by the parties of pro forma projections and an acceptable projected rate of return for each project.

 

The contract with Consolidated Edison requires that PEC and its partner deliver 4 megawatts of energy savings in the summer of 2017 and an additional 8 megawatts of energy savings in 2018.  The equipment at any particular project site may be a mix of battery storage, natural gas generators, or demand response and is required to be operational by April 2017 for the summer of 2017 and by April 2018 for the summer of 2018 but will be deployed for up to 7 to 10 years for Con Edison and other programs.

 

 

The Consolidated Edison BQDM program will reduce electricity usage during peak summer hours in order to defer $1.2 billion in substation upgrades in certain areas of Brooklyn and Queens. Power Efficiency Corporation is appreciative of the opportunity to offer distributed energy resources to facilitate the implementation of this innovative solution.

 

Power Efficiency Corporation President and COO, R. Scott Caputo commented, “This was a big effort and coordination on the part of our team, our partners and the Con Edison staff.  I’d like to thank them all for the opportunity.  Now the hard work begins.”

 

While we are highly confident in the skills and abilities of our partner and project team, there can be no assurance that the parties will be able to satisfy the terms of the BDQM program.

The parties are working to identify sites which will be eligible under the BDQM program. Performance of the contract specifications with Consolidated Edison will be made through the spv.  The contract with Consolidated Edison requires that PEC and its partner deliver 4 megawatts of energy savings in the summer of 2017 and an additional 8 megawatts of energy savings in 2018.  Additionally, the parties will be required to obtain permits from local government authorities related to the installation of equipment, which can be a lengthy and time consuming process.   The equipment at any particular project may be a mix of battery storage, natural gas generators or demand response and is required to be operational by April 2017.  In addition, the parties intend on procuring the services of a third party to oversee the purchase, installation and maintenance of the equipment and to oversee program performance during the life of the program and beyond.  The parties anticipate that the installed assets will be deployed for up to 7 to 10 years for Con Edison and other programs. There can be no assurance that the parties will be able to satisfy the terms of the BDQM program.

 

Power Efficiency Corporation President and COO, R. Scott Caputo commented, “This was a big effort and coordination on the part of our team, our partners and the Con Edison staff.  I’d like to thank them all for the opportunity.  Now the hard work begins.”

 

Power Efficiency Corporation CEO, Gary Weiss, stated “This is an important first step in the rebirth of the company.  We look forward to building our partner relationships while continuing to focus on bringing PEC back to fully reporting status.”  Power Efficiency Corporation CEO, Gary Weiss, stated “This is an important first step in the rebirth of the company.  We look forward to building our partner relationships while continuing to focus on bringing PEC back to fully reporting status.” 

 

 

 

Power Efficiency has filed a Form 8-K with the SEC onON October 14, 2016 with a complete copy of the agreement with its financial and project partner, and a complete copy of the Consolidated Edison BQDR BQDM program agreements.

 

Update on SEC Reporting Requirements

 

Power Efficiency Corporation is continuing to work towards becoming a full reporting company with the SEC under the Securities and Exchange Act of 1934.  The company originally filed a Form 10 registration statement on August 11, 2016.  Under SEC rules, the Form 10 became effective 60 days thereafter (October 10, 2016), however, the company must update the Form 10 filing with an updated business description and more recent financial statements, as well as to respond to SEC comments received with respect to the original filing.  A Form 10Q for the quarter ended September 30, 2016 will also be filed on or before November 24, 2016, as required under SEC Rule 13a-13. 

 

About Power Efficiency Corporation

Power Efficiency Corporation (PEC) provides comprehensive one-stop solutions to the grid stability problems and takes advantage of large and actively growing market opportunity for energy storage, which is projected to reach $45 billion by 2020. PEC offers solutions to grid operators, utilities, and Commercial and Industrial (C&I) customers. Our focus is on renewable Distributed Energy Resources (DER) and Battery Energy Storage Systems (BESS) for grid balancing services to the Independent System Operators (ISOs); load shifting for utilities; energy management through storage for C&I customers; and micro grids for energy security. We intend to build, own, partner with third parties, enter into joint ventures and operate these facilities to develop a portfolio of income producing projects.

 

Forward-Looking Statements

In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: difficult economic conditions, the possibility of increased or adverse government regulation, and the risk that we may be unable to obtain necessary capital investment and financing to install generator and battery storage systems and otherwise complete projects, and other risks and uncertainties. As a result, these forward-looking statements may turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Power Efficiency Corporation to be materially different from the statements made herein.

 

CONTACT INFORMATION

Contact
Power Efficiency Corp.
Scott Caputo
President and COO
info@peffcorp.com

PEC Files SEC Form 10-12G

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Power Efficiency Corporation Wins 2 Year 12 MW Bid in Con Edison BQDM Auction

GREENVALE, NY -- (Marketwired) -- 08/08/16 -- Power Efficiency Corporation (OTC PINK: PEFF), a one-stop solutions provider to the grid stability problems, as announced in a press release by Consolidated Edison, Inc. ("Con Edison"), participated in the Brooklyn Queens Demand Management Auction (BQDM), held by Con Edison, Inc. July 27 - 28, 2016 and won a bid to provide 12 Megawatts (MW) of Demand Response Energy in the summer months of 2017 and 2018. 

The auction was part of an innovative Con Edison program to defer $1 billion in infrastructure expenditures required for Richmond Hill, Ridgewood, and Crown Heights networks in Brooklyn and Queens by reducing 52 MW of peak load in the BQDM area through a combination of customer sided solutions (41 MW) and non-traditional utility sided solutions (11 MW). Con Ed sought 41 MW in commitments for 2017 and 2018 from companies, with an objective to use these demand side resources to reduce peak summertime loads on the electric grid in this territory. 

Scott Caputo, President and COO of Power Efficiency Corporation, commented, "We are pleased to win this bid and be selected to provide cost effective smart grid solutions to this very important market. We plan to implement a variety of measures to meet our 12 MW commitment that will include the curtailment of load associated with traditional Demand Response, as well as battery energy storage and clean power generation. We look forward to working together with Con Edison and others participating in the BQDM program, to meet our nation's growing demand for energy."

Participants in the Consolidated Edison program are required to enter into certain contractual agreements with Consolidated Edison which set forth the parameters of the demand reduction requirements which will be accepted by consolidated Edison, as well as certain financial guarantees which must be provided by participants. Power Efficiency Corporation will be required to deliver a standby letter of credit by August 31, 2016 in order for the contract with Consolidated Edison to be completed. Management believes it will be able to comply with the contractual requirements, including the delivery of the standby letter of credit in a timely manner. In the event that it is unable to meet the requirements, Consolidated Edison may decline participation by the company. 

About Power Efficiency Corporation Power Efficiency Corporation (PEC) provides comprehensive one-stop solutions to the grid stability problems and takes advantage of large and actively growing market opportunity for energy storage, which is projected to reach $45 billion by 2020. PEC offers solutions to grid operators, utilities, and Commercial and Industrial (C&I) customers. Our focus is on renewable Distributed Energy Resources (DER) and Battery Energy Storage Systems (BESS) for grid balancing services to the Independent System Operators (ISOs); load shifting for utilities; energy management through storage for C&I customers; and micro grids for energy security. We build, own, and operate these facilities to develop a portfolio of income producing projects.

Forward-Looking Statements In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, and Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. While these forward-looking statements represent our judgments and future expectations concerning our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to: difficult economic conditions, the possibility of increased or adverse government regulation, and the risk that we may be unable to obtain necessary capital investment and financing to install generator and battery storage systems and otherwise complete projects, and other risks and uncertainties. As a result, these forward-looking statements may turn out to be incorrect. We are under no obligation to (and expressly disclaim any obligation to) update or alter these forward-looking statements whether as a result of new information, future events or otherwise. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Power Efficiency Corporation to be materially different from the statements made herein. 

Contact Power Efficiency Corp.
Scott Caputo
President and COO
Email Contact

Source: Power Efficiency Corporation