PUBLIC UTILITIES BOARD ADOPTS FISCAL YEAR 2006 BUDGET

ALAMEDA, Calif., August 1, 2005 — The Public Utilities Board has approved a budget for Alameda Power & Telecom's 2006 Fiscal Year. The new budget presents the resources available for both electric and telecommunications services.

During Fiscal 2006, Alameda Power & Telecom will remain one of Alameda's largest businesses. A budget of approximately $57 million will support electric operations, and a budget of approximately $15.5 million will support of Alameda Power & Telecom's telecommunications services.

The City General Fund will benefit from over $4.1 million provided by Alameda Power & Telecom during the Fiscal Year. Electric operations will account for a transfer of $2,500,000 and a Payment in Lieu of Taxes of $1,188,000. Telecommunications Services is estimated to account for Franchise Taxes totaling $414,000 during the Fiscal Year. By the close of Fiscal Year 2006, Alameda Power & Telecom will have transferred over $90 million to the City since 1914.

Power costs are the largest items in the Alameda Power & Telecom budget for electric operations. Over $29 million, or about 61% of Electric Operating Revenues, will be spent for power by the end of Fiscal Year 2006. About 15% of the budget for telecommunications services, approximately $2.4 million, will be used for capital and other expenses necessary to connect customers to the system.

The Board's approval is the culmination of a 4-month effort. The Alameda Power & Telecom Fiscal Year 2006 began on July 1 and runs through June 30, 2006.