Ladies and Gentlemen,

My apologies for our silence the last two months.  We have been deeply involved in negotiations and due to the sensitive nature of these talks, felt that it was in everyone’s best interest to control our information flow until we were further down the road.  I know that there are many questions, and I will attempt to answer them with accurate, factual, and up to the minute information.

First, let me assure you that P1EC is up and operating and open for business.  Internally we continue to strengthen our operation and our staff in preparation for what we hope will be an exciting second half of 2021.  We have begun to travel a small amount to reunite our team as well as interact with some of our business partners.  We remain cautious and vigilant in our efforts to stay safe and healthy as the world begins to open up a bit.  We will continue to slowly bring our team back together as we enter a time of potentially, a much different business climate.

We do have some exciting news to relay to those of you who have patiently and genuinely supported the rebuild of P1EC.  Being who I am, I remain extremely cautious and deliberate in managing expectations and with that in mind, will offer my thoughts on the risks associated with this news.

In July, we signed a contract with Emera to act as our supplier and financier for our hedge purchases of power.  We entered into our first hedge buy in August saving P1EC almost 41% month over month on our cost of power.  Katie Widmar, our Chief Administrative Officer, has taken the lead role in these negotiations and has done an incredible job of facilitating this process to conclusion.  P1EC has never been in this position before and this step puts us “on the map” of key industry providers. Katie = Game Changer

Also in July, we entered into an agreement with OPTIMA, one of the leading rewards program providers in the United States, to design and implement a “white label” Rescom rewards program.  This program is only a small part of a strategy targeting two important goals. First, we hope to use this program to brand our Rescom supplier.  There is market room for us to do this and we feel it is vitally important to increase consumer consciousness in the trade.  Second, the overarching strategy is to use this program to help us reduce attrition which is one of the top risks in a fast-paced high growth industry.  TPC President Patrick Farah has taken the lead role in driving this program to implementation. Patrick = Game Changer

Just this week, we have begun to revamp and commercialize our web and internet content and “look”.  This is a major first step in the development of an onboarding portal that will ultimately allow customers in our service area to select and enroll themselves in a power program with Rescom.  As deregulation continues to expand geographically, we feel this will be a game changing approach for the industry. Ari Sims will be our Digital Marketing Coordinator on this project and we are excited to be working with someone of such talent.  Ari comes to us through a new affiliate partnership we will discuss later on.  Ari = Game Changer

We also recently introduced a new residential sales program that will assist us financially as well as expand our reach into the telemarketing community.  Mark Link, our Director of Global Sales, has discussed partnering with select telecom providers to participate financially in our contract success as opposed to the payment of a large up-front commission.  The results of this program are expected to allow us to grow faster without the impediment of the high cost of client acquisition at the beginning of the contract.  This again has industry changing potential as we continue to seek an industry leadership position. Mark = Game Changer

Many of you are aware that in March of this year, we decided to bring our onboarding process in house as we believed we had a better chance to increase our accounts receivable revenue by having our new clients onboarded in a more timely and accurate manner.  This required a herculean effort by our Director of Sales Operations, ClioMia Lentini, who worked tirelessly with our service partner, EC Infosys, to design, administrate and implement an onboarding process that is fast, efficient, and industry changing.  We are very proud that we can take a customer from “yes” to “energy on-flow” in less than half the time and with more accurate results.  ClioMia = Game Changer

Everyone knows that your Customer Service personnel can make or break your reputation in the business community.  This was also a program that Rescom had previously outsourced that did not meet our quality expectations.  In designing our program, the Team came up with three important goals; one, you get a real person on the phone when a customer calls; two, one call gets the answer to the customer’s question or concern,(empower everyone to make the right decision); three, all issues are resolved the same day,  not in 24 hours, the same day!  These are tall orders for anyone, but our own Theresa Walsh stepped up to the challenge and we have not missed a beat since.  Theresa is not only efficient but proactive in going back through the old records and out-calling those issues that were not yet resolved.  The results are one complaint in July!  Theresa = Game Changer

The P1EC team has worked tirelessly over the past almost two years on reduced salaries, long work hours, most of the time in their basements and spare bedrooms and even one in a hallway, to make this company work in an attempt to protect the investment of many.  Every one of them has earned the title “Game Changer” over and over again.  We hear from many unhappy shareholders every day and we know this has been a long and difficult process to watch for most of you and I understand the helpless feeling when you have little or no information.  All that said,  sometimes a simple “thank you” goes a long way.  Letting this team know your pulling for them only takes a second.

Now the news that most of you have been waiting for…

On July 27th, after a long period of negotiating very specific deal points, ECOGROUP USA, from Eatontown, New Jersey has signed a Letter of Intent to purchase a 20% Equity Stake in Power 1 Energy Company.  The company’s synergies are impressive and mutually beneficial.  This equity stake comes with bridge financing of $250,000 to fund immediately while the entities negotiate their way through a Subscription Agreement, a normal vetting process, and the legalese that naturally accompanies a transaction of this size and magnitude.  If the transaction can be consummated as planned, this equity stake, along with working capital financing by Emera, will put the company back on track.

I would not be me if I did not say we all need to demonstrate the commonsense notion that a deal is not done until the money is in the bank.  There are countless reasons this transaction may not occur. Obviously, people change their minds, or, capital to facilitate the transaction might not be found, and the list goes on and on as to why there is still incalculable risk.

While the terms of the transaction are at this point confidential, we will keep you updated as reliable, accurate, and pertinent information and/or progress is made on this exciting new development.


Ed Jenks, CEO

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