GOOD TO THE ENVIRONMENT AND
GOOD FOR BUSINESS

ALAMEDA, Calif., January 1, 2005 — Regular readers know that 80% of the electricity Alamedans use is generated using renewable resources.

We obtain some of Alameda Power & Telecom's electricity from the Western Area Power Administration, a branch of the U.S. Department of Energy. Much of the power comes from clean hydroelectric projects, including Shasta Dam and facilities in the Central Valley area.

Because this power starts with naturally flowing water, and requires no fuel to be burned, it is one of the cleanest energy sources. Alameda Power & Telecom is committed to maintaining its proven track record of environmental responsibility.

Don Rushton, our Utility Planning Supervisor, reports that in Fiscal Year 2004, the cost of this Western energy was highly competitive at 1.72 cents per kilowatt-hour. Power from other sources cost an average 4.79 cents per kilowatt-hour.

Power is the biggest part of the Alameda Power & Telecom budget. We're ever on the lookout for clean and economical energy sources.