IT'S THE SUMMER (BASELINE) SEASON

ALAMEDA, Calif., May 1, 2004 — Starting with the May billing cycle, the next six bills you receive on a residential account will be at Summer Baseline rates.

About 90% of our customers live in separately metered homes, apartments, and condominiums. These customers are served under Alameda Power & Telecom's D-1 schedule, which includes a "Baseline" Rate. The Baseline Rate is intended to allow enough energy at a minimal price for heating, lighting, and cooking.

The California Public Utilities Commission (CPUC) designed Baseline Rates for investor-owned utilities. Although not governed by the CPUC, Alameda's Public Utilities Board also has adopted a Baseline structure.

The Baseline amount decreases during the summer months to account for seasonal changes in energy needs. The best example of a seasonal change is lighting. Because there are more hours of daylight in the summer, we need to turn on lights for fewer hours.

The average residential customer in Alameda consumes approximately 341 kilowatt-hours per month during the summer. Nationally, the average residential customer uses about twice as much.

If you have permanently installed electric space heating as your primary heat source, you rely more heavily on electricity to provide your basic needs. You therefore are entitled to an increased "Baseline" amount. You may already receive this amount. Check the upper right-hand portion of your latest Alameda Power & Telecom bill. You will see the words "Rate Code" and the letters "D1B" or "D1H". "D1B" means that you receive basic electric service and are eligible for 234 kilowatt-hours at our lowest domestic rate during the summer months. "D1H" means that you have permanently installed electric space heating and receive 317 kilowatt-hours at our lowest domestic rate.

If anybody in your home depends on medical equipment for life or well being, you may be eligible for a Medical discount. The Medical discount may be either 10% or 15% of D1 Rate Schedule charges, based on household income. A doctor must certify all applications.

If you have any questions about your Baseline amount or to sign up for a Medical discount program, please call our Customer Service Representatives at 748-3900.