SHARED VALUES

ALAMEDA, Calif., August 1, 2004 — Alameda Power & Telecom does more than provide reliable power at competitive rates. As a locally run enterprise, we share the values of our community and actively manage programs that benefit our customers and the community at large.

In accordance with state law and good corporate citizenship, a portion of each customer's electricity bill is earmarked for public benefit programs that:

• Encourage energy efficiency and conservation.
• Provide new investments in renewable energy resources.
• Allow for research, development, and demonstration of technologies not fully explored by other markets.
• Assist low-income customers.

California Assembly Bill 1890, passed in 1997 and modified in 2000, mandates that at least 2.85% of a utility's annual net revenues be spent on activities in these four categories. This portion of revenue is called the Public Benefits Charge. For Fiscal Year 2004, the total mandated Public Benefit expenditure amount is approximately $1.1 million. However, Alameda Power & Telecom did not raise rates to collect the required Public Benefits expenditures because we have been investing in Public Benefits programs prior to AB1890, such as new investments to our geothermal power supply and energy efficiency programs. So, we haven't had to raise rates to comply with the law.

Encouraging Energy Efficiency

As an Energy Star® partner, Alameda Power & Telecom encourages customers to use less power and conserve valuable resources by purchasing energy-efficient appliances. Our staff also works with both residential and business customers to suggest ways to save energy. We provide education programs in renewable energy sources for all ages, as well.

• Our Energy Star® Refrigerator Rebate and Recycle Program offers $125 rebates to customers let who us recycle their old, inefficient refrigerators after purchasing Energy Star® qualified models.
• Each spring, the annual Great White Light Sale provides a coupon towards the purchase of Energy Star® qualified compact fluorescent lights purchased at participating local retailers.
• Weatherization Cash Grants are available for Alameda Power & Telecom electric heat- only customers for insulation and other measures such as caulking, weather stripping, and improving efficiency of other heating appliances.
• Alameda Power & Telecom provides free energy audits to all customers and recommends ways to reduce energy costs in their homes and businesses.
• A free Food Service Technology Seminar is offered to lower energy bills and is specifically designed for local restaurant owners and operators.
• In conjunction with the non-profit Geothermal Education Office, we provide in-classroom presentations, led by a geologist, in geothermal energy and renewable resources. Over 1,500 students have participated in this program. We also offer training and curriculum materials on renewable energy for middle school and high school teachers.
• Alameda Power & Telecom sponsored a Solar Power Project at Lincoln Middle School. A 1-kilowatt solar photovoltaic system allows students to learn firsthand about solar power as a renewable and clean energy source and study data collected by the system to build math and science skills.
• Alameda Power & Telecom commissioned Make-A-Circus, a non-profit educational organization, to create and perform a show that included clowns, acrobats, and jugglers, and educated 3rd, 4th, and 5th grade students on renewable energy and electricity generation.
• Twice a year, interested customers can participate in free tours of geothermal power plants and steam fields near Calistoga. Guests learn how clean geothermal power is generated to provide over half of Alameda Power & Telecom's power mix. Over 800 customers have taken this tour.
• Every August, we join with the Alameda Police Department in local production of National Night Out by providing information about safe, efficient outdoor lighting and distribute compact fluorescent light bulbs to local customers participating in the nationwide crime-prevention event.
• Through our Clean Future Fund Speaker Series, we regularly present lectures informing the public about energy issues and encouraging participation in the Clean Future Fund, a voluntary contribution program supporting investment in new, renewable forms of energy.

Investing in Renewable Energy Resources

Alameda Power & Telecom is both a supporter and provider of renewable energy resources. As members of the Northern California Power Agency (NCPA), we share ownership of two geothermal plants with other member agencies. In conjunction with NCPA, we fund projects to improve the efficiency and increase output of these plants.

• Through the Geyser Effluent Project, Alameda Power & Telecom joined other NCPA members in funding a project to pipe treated effluent from a sanitation district near the Calistoga steam field to increase both steam production and power generation levels.
• We have co-sponsored other geothermal plant improvements, including a project to re-blade power plant turbines for increased power output. We also support a project to study means of drilling injection wells that increase steam production.

Supporting Research and Development

Looking for new means of providing power cleanly and efficiently is a top priority at Alameda Power & Telecom. We conduct our own studies and support the research of other organizations to help design the future of electricity.

• In a recently completed Distributed Generation Study, Alameda Power & Telecom evaluated the costs and benefits of building small local power generation that would feed directly onto our distribution system. The study included a detailed economic analysis and a careful evaluation of the impact of local generation on the distribution system.
• We also use public benefit monies to support research and development by other organizations such as, the American Public Power Association DEED program, the only research program specifically addressing future technologies for public power utilities, and the Solar Electric Power Association, a collaboration of utilities and power providers working to encourage the development of solar power technologies.

Assisting Low Income Customers

We welcome the opportunity to help community members in need with special programs for low-income customers and those who need temporary assistance.

• Our Energy Assistance Program, administered in conjunction with the American Red Cross, provides qualified individuals with a free energy audit, installation of up to four compact fluorescent bulbs at no cost, and a 25% subsidy on monthly energy bills. Refrigerator replacement and weatherization are provided to customers meeting specific criteria, and all program participants are reevaluated each year.
• Our Project EASE (Energy Assistance through Supportive Efforts) offers shortterm, emergency assistance to residential customers who are not able to pay their electricity bill and have no alternative sources of assistance. Additional funding for this program comes through voluntary customer contributions.

We're proud to reflect the values held by the Alameda community. For more energy saving tips and information on Alameda Power & Telecom's Public Benefit Programs, call 748-3947.