FOR IMMEDIATE RELEASE

MANY RESIDENTIAL ELECTRIC BILLS TO DROP

ALAMEDA, Calif., May 31, 2006 - While energy costs continue to rise in other communities, many Alameda Power & Telecom household electric customers will see upcoming electric bills actually decrease.

At its May meeting, the City's Public Utilities Board adjusted residential electric rates in order to ensure that the significant price advantage enjoyed by Alamedans is spread more evenly across the rate class. "Our more energy-conscious customers should see their bill go down an average of almost $2 each month," said Ann McCormick, President of the Public Utilities Board.

"The previous rate structure, in some cases, did not adequately recognize our wisest energy users," she continued. "The revised schedule ensures that all of our residential electric customers save at least 10% over the rates used in surrounding communities."

Some residential customers, those placing the highest demands on the municipal system, may see an increase in billing. President McCormick added, "One of the Board's responsibilities is to ensure equity within individual rate classes and among all ratepayers. We continually work toward keeping our rates in balance. In this case, not only did we further that goal, but we also signal customers that their energy-management efforts will not go unrewarded."

The rate adjustment consists of price decreases and increased allowances in two lower-usage tiers and the addition of a new third residential price tier. Previously, the typical household paid approximately 11 cents for each of the first 234 kilowatt-hours used monthly and approximately 13 ½ cents for each kilowatt-hour used over that Baseline amount. Under the new structure, effective July 1, that typical household will pay approximately 10 cents for each of the first 259 kilowatt-hours used monthly, just under 12 cents for each of the next 77 kilowatt-hours used, and approximately 18 cents for each subsequent kilowatt-hour used. All customers using under 425 kilowatt-hours monthly will see their bill go down.

President McCormick added, "And we want to reach out to those customers using more than 427 kilowatt-hours monthly. They are our largest residential customers, and we want to make sure they're getting the most for their energy dollar. That's why we hope they will take advantage of our many programs to help lower their bills, including free energy audits, Great White Light Sale, Efficient Refrigerator Rebate and Recycle Program, and similar energy management initiatives." Customers are invited to call 478-3907 or log on to www.alamedapt.com for more information.

In all cases though, customers will continue to enjoy a significant rate advantage over their counterparts in surrounding communities. "Overall, households pay 15% less in Alameda," President McCormick summed, "and almost 1 cent for each kilowatt-hour used is reinvested in our City."