For Immediate Release

ALAMEDA POWER & TELECOM
INITIATES POWER-MANAGEMENT PROGRAM
TO DEAL WITH POWER SHORTAGES

ALAMEDA, Calif., April 18, 2001: Alameda Power & Telecom - the City of Alameda's municipally owned utility - has initiated significant measures to reduce the potential impact of California's electric-power shortages on the community.

An innovative two-part power-management program may mean no rolling blackouts in Alameda.

Alameda Mayor Ralph Appezzato said, "The power crisis facing California is very real. And it's not going to be solved in the near future. We're fortunate that we have a very capable municipally owned utility. This allows us to explore solutions on behalf of our citizens and the businesses in our community."

Mayor Appezzato added, "Utility Board Members and our utility management and staff are moving aggressively to deal with the issues of power reliability and cost."

Sebastian Baldassarre, president of the Public Utilities Board, said, "Our program includes conservation and the use of supplementary generating capabilities, coupled with power-utilization management." Baldassarre pointed out, "We can't guarantee that the program will completely avoid interruptions of electric-power service. But we're hopeful that with the steps we are taking, our customers will experience very little - if any - inconvenience related to the current power crisis."

Baldassarre noted that the power-management programs were particularly important in support of Alameda's economic development and base-reuse activities.

The first element of the program is voluntary conservation. "Alameda businesses and residents have been very cooperative when there's been a threat of blackouts," said Junona Jonas, general manager at Alameda Power & Telecom. "Large companies such as Wind River and Lucent have reduced their power utilization. At Alameda Point, the cargo vessels in the U.S. Maritime Administration's Ready Reserve Fleet voluntarily used their on-board diesel generators so they wouldn't need shore-based power. And Alameda citizens have cut back their use of electricity."

Alameda Power & Telecom's Energy Values Program has been providing Alameda residents and businesses with on-going conservation opportunities, long before the current problems began. Meredith Owens, energy management coordinator, explained, "Our conservation program includes energy audits to help customers reduce power needs, a rebate program for the purchase of energy-efficient refrigerators, and a coupon promotion encouraging people to buy compact fluorescent light bulbs."

She notes, "These programs have been popular over the past several years. But now, there's an even higher level of participation."

The second element of the program is the use of supplementary generating capabilities. Alameda Power & Telecom has leased four portable generating units, each capable of producing up to 1-1/2 megawatts of power. The generators have been positioned at a power substation at Alameda Point and are now ready to be used when needed.

Jonas explained, "When the Independent Systems Operator (ISO) calls for a reduction in power we are receiving from the grid, we can comply by using the portable generators." She added cautiously, "Theoretically that could mean avoiding power interruptions in Alameda when the ISO calls for reductions in transmission flows over the grid. But the statewide power situation is serious and complex. And there are still a lot of unknowns that we may have to deal with."

Jonas noted, "As a municipally owned utility, we're in a fortunate position during this very difficult period. We have options that most other communities don't have. We're able to provide electric power with a high degree of reliability with less price volatility. Those are very important benefits for both our residential and commercial customers."